7 Australian Tax Incentives You Should Know About and Use


Over the past couple of years, the federal and state governments have provided a lot of support to help businesses navigate through the troublesome time caused by COVID-19. However, there are many other tax incentives that you may not be aware of that are available, and knowing what they are can allow you to enjoy more savings in your effort to grow!

So, what are those incentives, you ask? Let’s find out together:

1. R&D Incentives

As the name implies, research and development incentives motivate companies such as yours to engage in R&D activities. This is done by helping you offset costs that pertain to eligible R&D activities, and the amount is equal to 30% of the corporate tax rate for big companies and 25% for smaller companies. 

Additionally, companies with an annual turnover of less than $20 million will also receive an 18.5% premium! Companies with more than $20 million in annual turnover are eligible for a premium of up to 8.5%.

2. Patent Box Regime Incentives

Normally, corporate income is taxed at either 25% or 30%. However, this incentive is aimed toward Australian medical and biotech patents, lowering the tax income on those down to just 17%. That’s nearly half the tax previously imposed, which is a huge incentive for companies that are struggling and do not want to deal with higher corporate income tax.

3. ESIC Incentives

ESIC, short for early-stage innovation company, is aimed at startups and brand-new businesses. It offers a non-refundable carry-forward tax offset for any amount invested into them, with the max cap being $200,000 a year.

4. FEDA Incentives

Full expensing of depreciating assets is a type of incentive that helps businesses make more investments. Any business that is eligible for it and has an aggregated turnover of less than $5 billion can fully deduct the cost of eligible assets that are depreciating.

5. Loss Carry-Back Incentives

The main goal of loss carry-back incentives is to help companies enhance their cash flow by using their losses up to the 30th of June, 2023. For companies with less than $5 billion aggregated turnover can carry back their tax losses from the current income tax year to offset taxed profits as far as 2019!

6. Digital Games Tax Incentives

Specifically for the digital game industry, this incentive is aimed at helping international companies come to Australia to develop digital games. These companies are offered a 30% refundable tax offset for Australian qualifying games with a minimum investment of $500,000.

Note that certain games are excluded from this incentive, such as games that utilise gambling features.

7. Brewers and Distillers Tax Incentives

As the name implies, this incentive is aimed at supporting Australia’s alcohol manufacturing industry. This enables eligible brewers and distillers to receive up to 60% of any excise paid on the alcohol produced. This number is capped at $350,000, a much higher figure than the previous $100,000.


As you can see, there are a bunch of incentives out there that you can use to boost your cash flow, save money, and more to help you survive and even thrive during these troubling times. That said, there are still plenty more incentives out there, and there can be plenty of changes and additions to be made to the current incentives. So, always be sure to reach out to a professional accountant for help to stay up to date on these things and to also make the most out of these incentives to benefit from them!

SMB Accounting offers various small business accounting services to help companies stay on top of their taxes and more. If you are looking for an accountant in Caloundra to assist you, get in touch with us today!