Andromeda Metals Ltd (ASX:ADN) has boosted its finances on receiving an Australian Government Research and Development (R&D) Tax Incentive refund of A$2.34 million following lodgement of a tax return for the 2024 financial year.
The tax return for FY24 included A$5.4 million in eligible R&D expenditure, which has resulted in a cash rebate of A$2.34 million being received by the company.
Valued contribution
“Andromeda is pleased to receive this refund from the ongoing R&D tax incentive program, which is a valued contribution by the Australian Government to support innovation by industry,” Andromeda’s acting CEO Sarah Clarke said.
“Receiving close to half of the eligible expenditure spent is a great outcome for Andromeda and its shareholders, and supports the company’s funding process, which is currently underway.”
Advance Finding
The refund follows the awarding of an Advance and Overseas Finding Certificate to the company by the Australian Government’s AusIndustry.
This relates to expenditure on activities for the scaling up of product and process development under Stage 1A+ of the company’s Great White Project in South Australia.
The Advance Finding confirms that Andromeda is able to claim refundable tax offsets, or cash rebates, at the rate of 43.5% of costs incurred on eligible expenditure over a three-year period.
Under Stage 1A+ these eligible expenditures are expected to total approximately A$26 million.
The Advance Finding is binding on the Australian Taxation Office (ATO) for the 2024 financial year and the two following financial years.