Australian R&D Path Finder
This tool is for a US company that wants to do research and development in Australia. Australia gives money back to companies that do research here, but how much you get depends on how you set things up. Answer thirteen questions, and the tool will explain what each answer means for you. The thresholds in the questions are in Australian dollars. Your results are shown in US dollars at today's exchange rate, with the Australian dollar figure in brackets.
Path A. The Australian company does the research for itself. It owns the results and carries the risk. The tax office checks it most closely. For example, on US$689,655 (A$1,000,000) of spending a year, the refundable offset gives back about US$300,000 (A$435,000) in cash. That is 43.5 cents per dollar.
Path B. The Australian company does the research for its US parent under a written contract. The parent owns the results and pays the costs. It is simpler to defend. The same offset applies, but the parent's payments are taxed, so about US$110,345 (A$160,000) is left as cash. That is 16 cents per dollar.
How does the US company do business in Australia?
Only certain companies can claim. The company must be set up in Australia, or be a foreign company that pays tax in Australia, or be a US company with a branch in Australia.