Company X is an R&D entity entitled to notional deductions of $150,000 for R&D expenditure.
Company X's aggregated turnover for the income year is $1,600,000.
Company X is entitled to the 45% refundable R&D tax offset , which is calculated as follows:
45% x $150,000 = $67,500 R&D Tax offset (refund subject to other tax liabilities)
Note that when completing your income tax return, the amounts that make up your R&D tax offset will be removed from your standard deductions. This occurs so that you do not receive both a standard deduction and the R&D tax offset for the same expenditure.