Wave energy developer Carnegie Wave Energy Limited (CWE) announces that it expects to receive a cash payment under the new Australian Federal Government’s Research and Development Tax Incentive of approximately $1.1m in the coming weeks.
The new Research and Development (R&D) tax incentive replaced the R&D tax concession from 1 July 2011. The new legislation provides annual cash refunds (refundable tax offsets) of 45% on qualifying R&D expenditure benefiting eligible R&D entities such as Carnegie.
In the year ended 30 June 2012 Carnegie incurred qualifying R&D expenditure qualifying Carnegie for refundable tax offsets. Carnegie then successfully registered with AusIndustry, the administrator of the scheme and has now lodged the R&D tax return with the ATO.
Carnegie is now poised to benefit from this new legislation through an expected $1.1m cash refund in the coming weeks. The cash refund is in addition to existing Government project grant funding.
Carnegie will continue to benefit from the new legislation in the current and future financial years and from 1 January 2014 the company will become eligible for quarterly cash refunds. The new legislation also allows for R&D work to be carried out overseas under certain circumstances.
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Press release, October 9, 2012; Image: Carnegie Wave Energy