biotech tax incentives

http://www.ausbiotech.org/content.asp?pageid=169

About Biotechnology Tax Incentives

Program details (edited)

The R&D Tax Incentive provides:
• A 45 per cent refundable tax offset (equivalent to a 150 per cent deduction) to eligible entities with an aggregated turnover of less than $20 million per annum. Companies in tax loss may take a cash refund.
• A non-refundable 40 per cent tax offset (equivalent to 133 per cent deduction) to all other eligible entities.

In addition to the incentive being more focused toward “genuine” R&D, other key changes include no limit to the amount of R&D companies can seek to claim for, changes to the definition of R&D activities, now segregating them into core and supporting, and eligibility is extended to overseas pre-approved R&D that cannot be conducted in Australia.

“Core” R&D activities are experimental activities:

whose outcome cannot be known or determined in advance on the basis of current knowledge, information or experience, but can only be determined by applying a systematic progression of work that:
is based on principles of established science; and
proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and
that are conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services).

An activity is eligible as a “supporting” R&D activity where:

it is directly related to a core R&D activity; or
for certain activities, it has been undertaken for the dominant purpose of supporting core R&D activities.

Companies are able to seek an advance finding, where they are uncertain of the eligibility of their activity.

There is no limit on the expenditure that may be claimed, provided it meets the eligibility criteria, and there is (with minor exceptions) a minimum expenditure of $20,000.

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AusBiotech also mentioned there will be quarterly payments of cash refunds, instead of annual payments, from 1 January 2014.
View the AusBiotech link at the top of page to see full details(PYC is mentioned).
Cheers
SoT