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Media Super launches $30m R&D program

Monday, 01 May 2017
By Print21

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

Media Super CEO Graeme Russell said that the R&D Finance Facility was modeled on the fund’s successful Film & Television Finance Facility.  That facility, also a revolving fund, has loaned more than $100m to over 70 Australian film and television productions.

Russell said that the expertise developed through managing the Film & Television Finance Facility was now being applied to help finance R&D projects in smaller Australian companies.  The new R&D fund will be managed by the same commercial partner, the Sherman group.

“Every loan for completed film and television productions has been repaid, and Media Super members have shared in returns averaging 6.8% p.a. over 6 years”, Russell said.

“We expect to earn a higher return on the R&D Finance Facility, with interest rates set at good margins above the bank bill rate”, he said.

Russell said that Media Super would continue to develop innovative, low-risk investments, which he says have contributed to the remarkable turnaround in investment returns for its default MySuper (Balanced) option, improving from 4th to 1st quartile in just 2 years.

SuperRatings’ SR50 Balanced fund survey for March 2017* ranks Media Super’s MySuper Balanced option as the fifth best performing fund for the financial year to date (9.60%).

*SuperRatings Fund Crediting Rate Survey – SR50 Balanced Index, March 2017.

HOW THE INVESTMENT WORKS

The 45% tax credit for eligible R&D expenditure is generally refundable for eligible entities 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 part fund 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.

Loans are expected to be repaid within 12-24 months, with the funds then loaned out to help fund other eligible R&D projects.

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

MEDIA SUPER’S FILM & TELEVISION FINANCE FACILITY

Media Super’s Film & Television Finance Facility, a revolving $60m fund, has helped finance more than 70 Australian film and television productions.

Media Super’s film and television library includes many of Australia’s finest films and television programs.

Feature films funded include:

  • Lion
  • The Dressmaker
  • The Daughter
  • Holding the Man
  • The Railway Man
  • Last Cab to Darwin
  • The Rover
  • Drift
  • The Turning

Television programs funded include:

  • The Gods of Wheat Street
  • Cleverman
  • Miss Fisher’s Murder Mysteries
  • The Secret River
  • Rake (season 4)
  • Upper Middle Bogan (season 3)

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