If your aggregate turnover is less than $20 million then you can claim the 45% refundable tax offset. (Subject to other conditions being met) If your aggregate turnover is $20 million or more then you can claim the non refundable 40% tax offset.  (Subject to other conditions being met)

For the purposes of the R & D Tax Incentive your aggregate annual turnover includes other entities that are connected to you or an affiliate.

Annual Turnover: This is the total ordinary income derived for the entire financial year while carrying on a business.

Connected Entities:  According to the Australian Taxation Office (ATO) you are connected to another entity if:

-    You control the other entity; or

-    You and the other entity are controlled by the same third entity.

Affiliate:  An entity is considered an affiliate if in relation to your business they act or could be expected to act as follows:

-    In accordance with your directions or wishes; or

-    In concert with you.