The R&D Tax Incentive is the Australian Government’s principal measure to encourage industry investment in R&D. It is a broad based, market-driven program that aims to boost company competitiveness, improve productivity and deliver economy-wide benefits to Australia. The R&D Tax Incentive is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO). Innovation Australia and AusIndustry are responsible for registration of activities and for determining whether activities comply with the scheme requirements. The ATO determines if the expenditure claimed in your tax return for your R&D activities is eligible. The R&D Tax Incentive operates on a self assessment basis. Claimants are responsible for ensuring they meet the key eligibility criteria of the program in relation to registered R&D activities and related expenditure. RADBE Consulting has worked with numerous clients in accessing the R&D tax incentive and has a well developed methodology to assist clients at all stages of the claim process.
Can you apply?
All companies that fall into the following categories can claim the R&D Tax Incentive: The Company is incorporated under an Australian Law, or The Company is incorporated under foreign law but is an Australian Resident for income purposes, or The Company is incorporated under a foreign law and is a resident of a country with which Australia has a double tax agreement, including a definition of ‘permanent establishment’, and is carrying on business in Australia through permanent establishment as defined in the double tax agreement.
What will you get? The key elements of the R&D Tax Incentive Program are: A 43.5 percent tax offset for eligible companies with an aggregated turnover of less than $20 million per annum; or A non-refundable 38.5 percent tax offset for all other eligible companies.
What can you claim?
Your claim can include qualifying R&D expenditure directly incurred in undertaking R&D activities and the portion of overheads that support R&D. For more information on what is qualifying expenditure, please contact RADBE Consulting who will assist you further.
How quickly do I need to act?
The R&D Tax Incentive must be registered with AusIndustry annually within 10 months after the end of the Company’s income year in which the activities are conducted.
The R&D Tax Incentive for the 2017 financial year is required to be lodged with AusIndustry by 30 April 2018.
How can RADBE Consulting assist?
RADBE Consulting is able to provide your business with the following services in relation to the R&D Tax Incentive: Assess your eligibility; Provide information and guidance on the claim process; Prepare the necessary documentation to submit a claim; Outline the documentary evidence that needs to be retained to substantiate the claims; Act as a point of contact by liaising with the ATO and AusIndustry staff; Provide assistance through any audit process; and Provide ongoing business, strategic and technical advice as and when required.
How do I get the ball rolling?
If you would like to find out more about the R&D Tax Incentive or other government grants and incentives that you may be eligible for, contact RADBE Consulting on 07 3216 6242 or email to info@radbe.com.au.
Latest News
R&D Update: 2020-21 Application Deadline
Please see some important timeline updates from RADBE about the R&D Tax Incentive over the coming months.
2020-21 R&D Closing Soon There are only 3 monthsremaining to finalise your R&D application for the 2020-21 financial year. R&D Tax Incentive claims for the 2020-21 financial year close in April 2022, please contact us or your RADBE Consultant if you are interested in pursuing a claim.
New AusIndustry Requirement – Portal Access The Australian Government now require all R&D Tax Incentive applications to be made through the designated AusIndustry portal. Detailed instructions can be found here. If you are not an established myGovID user for your business, this process may be lengthy and may impact our ability to submit an application by the deadline if not addressed soon.
Conducting R&D activities offshore? An Overseas Finding is required where an eligible R&D activity is unable to be conducted in Australia and is subsequently undertaken overseas (excluding purchase of raw materials, off-the-shelf products, etc.). It is necessary to lodge an Overseas Finding prior to the end of the claim period (i.e. 30 June 2022) and typically occurs when facilities, equipment, environmental or biological features are not available in Australia. If you think that this may apply to you, please contact us for more information.
Doing R&D under a New Zealand company? RADBE is now processing claims under New Zealand’s recently implemented R&D scheme, with pre-registration for 2021-22 due by May 7, 2022.
If you would like more information regarding any of the above, please contact us.
The Queensland Government is committed to opening Queensland back up for business in the wake of COVID-19, funding a free business education program designed to help navigate economic impact.
The program is available to small business owners, their staff, aspiring and previous operators. It provides access to online resources, including libraries, materials, activities, classes, workshops, courses, e-books, templates and tools to assist businesses in understanding and navigating a response and build a stronger future.
The program is valued at upwards of $5,000 per user, and includes coverage of:
The R&D Tax Incentive is undergoing a number of reforms as part of the 2020-21 Federal Budget, including increased benefits for the 2021-22 financial year. Find out more here.
The research and development tax incentive (RDTI) was a main focus during the Department of Industry’s appearance at senate estimates on Thursday afternoon.
The guidance outlines how companies undertaking software development will have to be more specific with making sure that activities meet the government’s definition of research and development, and keep better records of the activities...
September Update for State based Government Grants
STATE-BASED GOVERNMENT GRANTS – SEPTEMBER 2018 UPDATE
In the 2018 budget the Queensland Government injected an additional $73 million over 4 years into the Advance Queensland Program bringing the total available funds to $650 million.
Australia, New Zealand, and the United Kingdom Phone | +61 7 3216 6242 Email | info@radbe.com.au Head Office | Level 2, Building 2, 50 McDougall Street, Milton, Queensland, 4064 (Australia) Postal | PO Box 2380, Milton Queensland, 4064 (Australia)
