R&D Taxation Concessions

Adelaide-based engineering company Priority Engineering Services can largely attribute its export success to the R&D tax concession it receives from the Commonwealth Government.

Priority Engineering Services Managing Director, Mr Peter Page, believes his company's ability to access the R&D tax concession has been an integral aspect of the company's success in the domestic and international marketplace.

Mr Page said, "We have had the opportunity for someone from government to sit alongside us and look at our projects. They are able to identify what is worthwhile not only for the company, but the country".

Through its regional offices across Australia, AusIndustry delivers 28 products and services with a total value of around $1.8 billion to about 18,300 customers annually.

The key objective of the R&D tax concession is to enhance the level of R&D being conducted within Australia. The concession enables companies to deduct up to 125% of eligible expenditure incurred on R&D activities from assessable income when lodging their tax returns.

The concession aims to encourage increased investment in R&D by Australian companies, in order to make them more innovative and increase the international competitiveness of Australian industry.

Tax benefits derived from the concession can provide companies with the opportunity to reinvest resultant tax savings in their future. With new and improved products and services, companies can enjoy the benefits of greater competitiveness through increased sales and consequent profits.

For more information on the R&D tax concession, contact Mick Lynch on 02 92125505 or email info@bsi.com.au