Supporting australian r&d with new investment

22 Jun 2017 By Media Super Team

Media Super has launched an innovative $30 million fund to help finance Australian research and development projects. 

The revolving fund will provide loans of up to $3m to companies and research institutions for projects eligible for an R&D tax credit under the Federal Research and Development Tax Incentive program. 

The Federal incentive program is designed to encourage more companies to engage in R&D, and aims to boost competitiveness and improve productivity across the Australian economy. 

CEO Graeme Russell said the new investment allows Media Super to provide much needed funding for Australian R&D projects, while providing a stable return for members.  

‘The R&D finance facility is modelled on our successful film and television investment fund, which we run in partnership with Fulcrum Media Finance,’ Graeme said.

‘Since 2010, we have loaned more than $100m to over 70 Australian productions, and loans on all completed productions have been repaid. 

‘The film and TV finance facility has provided our members average returns of 6.8%^ over the past six years, and we expect to earn a higher return on the R&D investment.’

These innovative but relatively low-risk investments are part of Media Super’s diverse investment portfolio, and are contributing to our strong investment performance. 

Returns for both our Balanced (MySuper) and pension Balanced investment options are in the top 20 Australian super funds for the financial year to 31 May 2017.*

HOW THE INVESTMENT WORKS

The program provides tax offsets on eligible R&D expenditure for companies with an aggregated turnover of less than $20m p.a.  These companies/entities will be the main focus of the proposed financing scheme.

Media Super will provide a loan facility for eligible R&D expenditure and be repaid from the R&D tax offset refund which follows the R&D entity’s lodgement of its annual income tax return.

Borrowers must have a history of qualifying for and receiving R&D tax credits.

The R&D Tax Credit regime is administered jointly by Innovation Australia (with the assistance of AusIndustry) and the Australian Taxation Office.

Find out more about the R&D Tax Incentive program, including eligibility criteria. 

^ Investment returns are not guaranteed and past performance gives no indication of future returns.

* SuperRatings Fund Crediting Rate Survey – SR50 Balanced options (60-76) Index and SRP50 Balanced options (60-76), May 2017.