Research & Development Incentives
It’s still not widely known that the Australian Government financially supports “innovative” businesses via two effective ‘funding pools’ – tax incentives and discretionary grants.
If your business operates wholly or partially under a company structure*, and you are developing new or improved products and/or processes – in other words, doing research and development (R&D) – there’s a good chance you may be entitled to such financial support.
From time-to-time Government releases specific ‘pools’ of industry-focussed grant funds. Usually with limited application timeframes, funding is competitively awarded and requires relatively intensive submission preparation. Thus careful discernment of likely rewards under grant opportunities is very important and we can guide you in this decision-making process.
To secure benefits under the R&D tax incentive program (by far the larger incentive pool as compared to grants) an annual registration requirement must first be met by your company – that ‘rego’ process being administered by AusIndustry, a part of Government’s independent body, Innovation Australia.
We have a strong understanding of, and deep consulting expertise in, this (R&D incentives) arena.
We will work closely with you, firstly to discern whether you’re likely to qualify for such R&D incentives, and then to guide and assist you in crafting the requisite Registration submission. And finally, we will assist you to quantify your R&D incentive – a tax offset that’s receivable as either as a cash refund (for certain smaller, start-up/ loss-making businesses) or a reduction in your company’s tax payable.
The amount of R&D incentive entitlement can include eligible expenditure across a range of cost-types such as labour (salary & wages and contractors), overheads, certain development-related materials, consultants’ fees, and other trial costs & experiment-related items and outlays.
We identify R&D incentive opportunities for a wide range of industries and sectors, including from infrastructure engineering and construction industries, waste management /recycling businesses, to biotech and agribusiness ventures.
Our services also include assisting your company with:
- R&D strategic-planning, including participating in your R&D team’s discussions
- Responding to statutory (AusIndustry and/or ATO) R&D reviews
- Review of your prior R&D claims (to identify ‘understated’ eligible costs)
- Preparation of amended R&D tax incentive claims
Effective from income years commencing 1 July 2016 (i.e. years ending 30 June 2017 onwards) there are two R&D tax offset rates. Depending on your company’s annual turnover, they are 43.5% for those with up to $20 million turnover and 38.5% for “over “$20 million” turnover companies. Previously (i.e. up to an including years ending 30 June 2016) those rates were 45% and 40% respectively for each of the two “turnover classes or groups”.
[*Certain trust structures can also be entitled to R&D tax incentive – we can advise you on this.]