The new threshold for R & D tax incentive claimants has changed to $100,000,000.  That is notional deductions can only be included in the calculation up to $100,000,000.  

This means that an entity is only allowed an offset equal to 30% for notional deduction in excess of $100,000,000, rather than 40% or 45%

For example if an entity had notional deductions of $200,000,000 the offset would work as follows:

$100,000,000 x 40% = $40,000,000
$100,000,000 x 30% = $30,000,000

Total offset =    $70,000,000

This threshold applies to income years commencing on or after 1 July 2014.

Refer to Section 355 – 103 Income Tax Assessment Act 1997 (ITAA 1997)

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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