Funding - RRA

An important part of the Government's commitment to Research and Development (R&D) is facilitating access by small and medium sized companies to expert R&D services, particularly those residing in public sector research organisations.

The Industry Research and Development Act 1986 provides for the establishment of Registered Research Agencies (RRAs).  A RRA is an organisation approved by Innovation Australia which is capable of performing contracted R&D, in one or more classes of research activity, on behalf of eligible companies, or through a group of companies who have entered into a collaborative arrangement.

Olitek are accredited and registered as a RRA for the purpose of performing "contracted" R&D to eligible companies claiming the R&D tax concession under Section 73B of the Income Tax Assessment Act 1936.

The advantages of dealing with Olitek as a RRA are:

1.  Expenditure for Australian R&D work contracted to an RRA, within approved classes of activity, is eligible for the full concession in the year of income, irrespective of the annual R&D expenditure of the claimant; that is the normal annual expenditure threshold of $20,000 is waived.

2.  Prepayments for contracted Australian R&D may be claimed by companies up to twelve months in advance of the work being carried out.

3.  Small and medium-sized firms are able to undertake R&D programs without having to invest in costly R&D equipment and expertise.

For more information on the scheme please click on the link below

www.ato.gov.au/randd