{"id":75352,"date":"2024-03-08T11:48:29","date_gmt":"2024-03-08T01:18:29","guid":{"rendered":"https:\/\/www.aumanufacturing.com.au\/?p=75352"},"modified":"2024-03-08T11:52:35","modified_gmt":"2024-03-08T01:22:35","slug":"recce-uses-innovative-method-to-bring-forward-rd-incentive","status":"publish","type":"post","link":"https:\/\/www.aumanufacturing.com.au\/recce-uses-innovative-method-to-bring-forward-rd-incentive","title":{"rendered":"RECCE uses innovative method to bring forward R&D incentive"},"content":{"rendered":"

The federal government’s Research and Development (R&D) tax incentive may have highly restrictive rules and definitions which cut the number of companies eligible for assistance, but for early stage and start up companies it can be a godsend.<\/p>\n

Available to companies turning over less than $20 million – itself a bone of contention with innovative companies<\/a> – the incentive supports SMEs in their research phase, when they have the least financial capacity.<\/p>\n

Many an Australian company would have not grown from micro to small, let along be set on the path for bigger success without the incentive.<\/p>

\"\"<\/a><\/div><\/div>\n

But it is something paid after the expenditure is already made, stretching cash flow for many.<\/p>\n

Anti-infective drug development company Recce Pharmaceuticals<\/a> is one of a growing group of companies using an innovative way of bringing forward payments expected through the R&D tax incentive<\/p>\n

The company, which is developing a new class of Synthetic Anti-Infectives, today announced approval for $11,178,965 as an R&D Advance payment from Endpoints Capital capturing tax incentive for FY23\/24 and FY25. <\/p>

\"\"<\/a><\/div><\/div>\n

Receiving $11.17 million in non-dilutive cash before it could be expected from the ATO enables the Company to leverage its R&D expenditure benefits of the past, present and future R&D applicable expenditure on a here today basis, according to a statement. <\/p>\n

Recce also had another win, announcing it had received an Advanced Overseas finding awarded by the Australian Government of $54.9 million – the largest ever awarded.<\/p>\n

This extends the the 43.5 percent R&D rebate from only applying locally, to cover those undertaken by the company anywhere in the world for a period of three years, from 1 July 2022 to 30 June 2025. <\/p>\n

Of course like any financial service Recce will be paying for it – through a 15 percent per annum interest rate, payable by way of offset against R&D refunds and secured against accrued R&D credits only. <\/p>\n

The Chief Executive Officer of Recce Pharmaceuticals James Graham said: \u201cThis non-dilutive funding not only extends our financial runway but facilitates the acceleration of our multiple clinical programmes” <\/p>\n

Further reading:
\n
R&D companies should beware too much success<\/a><\/p>\n

Picture: Recce Pharmaceuticals<\/p>\n","protected":false},"excerpt":{"rendered":"

The federal government’s Research and Development (R&D) tax incentive may have highly restrictive rules and definitions which cut the number of companies eligible for assistance, but for early stage and start up companies it can be a godsend. Available to companies turning over less than $20 million – itself a bone of contention with innovative…<\/p>\n","protected":false},"author":4,"featured_media":75356,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[67,63,64],"tags":[5436,5437,1046,5435],"acf":[],"yoast_head":"\nRECCE uses innovative method to bring forward R&D incentive - Australian Manufacturing Forum<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aumanufacturing.com.au\/recce-uses-innovative-method-to-bring-forward-rd-incentive\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RECCE uses innovative method to bring forward R&D incentive - Australian Manufacturing Forum\" \/>\n<meta property=\"og:description\" content=\"The federal government’s Research and Development (R&D) tax incentive may have highly restrictive rules and definitions which cut the number of companies eligible for assistance, but for early stage and start up companies it can be a godsend. 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