Easier access to R&D tax concessions and SA innovation grants will be a new benefit we can bring to you if you work with us from now on, as we are now a Research Service Provider (RSP) approved by Innovation Australia, taking effect from 24 January 2013.
If you are a small and medium-sized enterprise (SME, annual turnover < $20b) who plans to conduct R&D in electrical and electronic engineering but do not want to spend money in investing in the specialist staff or infrastructure, an efficient and economical solution for you is contracting the R&D activities to us, while you can claim the R&D tax concession more easily for the work we do for you and also get Innovation Vouchers from the SA Government towards the work we do.
“More easily” here means you can claim a R&D tax concession for eligible expenditure on registered R&D activities, even where your total claim is less than the usual threshold of $20K in an income year. This is under the R&D Tax Incentive program launched by the Australian Government for the purpose of encouraging more SMEs to conduct R&D with the support from approved RSPs. See more details here.
As for the SA innovation grants, you and Don Alan can apply for the grants together by completing an Innovation Voucher Program (IVP) Application Form (only 3 pages – very simple process) as long as we and the project involved meet the eligibility criteria. Once approved, you can, for example, just spend $5K for a $15K project if your annual turnover is less than $5m, or just spend $10K for a $20K project if your annual turnover is between $5m and $20m. And the Innovation Vouchers, typically between $10K and $20K (or up to $50K in exceptional circumstances) will be awarded on a competitive basis and directly paid to us towards the work we do. See the eligibility criteria in the program guidelines here.
The number of Innovation Vouchers issued per annum is subject to the available State Government funding (up to $1m in 2012/13). So you need to get in quickly before the allocated funds are used up!
If you ask why the Australian Government and the SA Government are so committed to implementing programs and initiatives to boost R&D, there couldn’t have a better illustration than the following quotes from David Wilson, General Manager of Research, Development and Venture Capital of AusIndustry.
“R&D is recognised as a critical driver of innovation. There’s extensive evidence worldwide to support this statement that firms that do undertake R&D and are innovative in their practices are going to be more successful, more productive and competitive in the global market place in particular. Clearly, R&D isn’t innovation, but R&D is a critical part of the innovation system.”