The Australian government provides up to $2 billion per annum in additional funding to eligible businesses via the R&D Tax Incentive.
Here is a quick reminder in relation to the upcoming R&D Tax Incentive deadline and other actionable items.
Actionable Items Prior to April 30, 2015:
- Deadline:Submit the R&D Tax Incentive application for financial year ending 30 June 2014.
- Claiming Refundable Offsets:Ensure that the R&D tax offsets are claimed in the correct order of priorities to maximise cash benefit received by the R&D company.
Actionable Items Prior to June 30, 2015:
- Payments to associates: Payments to associates have to be made if wish to claim these expensesas part of the 2014/15application.
- Findings: Submit Overseas Finding application for eligible R&D activities undertaken overseas this financial year.
- Record Keeping: Record all potential R&D activities and ensure that contemporaneous documents are retained to substantiate the claim.
AusIndustry has released a number of guidance papers in relation to different industries such as Energy, Construction, IT and Manufacturing. It is worth reviewing these guides as they can assist with maximising claims and meeting compliance obligations.
Please feel free to contact us should you wish to obtain copy.
Announced Changes
R&D Tax Incentive
As part of the 2014-15 Federal Budget, the Australian Government has reduced the rate of benefit to all companies under the R&D Tax Incentive in relation to the FY2014/15 claims. The rates of the refundable and non-refundable offsets will be reduced by 1.5 percentage points to 43.5 per cent and 38.5 per cent respectively.
It is expected that the refundable tax offset will go back to 45 per cent from theFY2016.
The good news is that no companies will be excluded from accessing benefits to which they are currently entitled and the existing delivery arrangements and eligibility requirements will also not be affected.
However, the claims are now capped at $100 million per annumfor all companies.
Other Opportunities
Currently businesses are able to access funding and support via the Entrepreneurs’ Infrastructure Programme, which provides practical support for businesses, researchers and entrepreneurs to improve their competitiveness and productivity in the form of:
- Co-funded grants to commercialise new products, processes and services and to take advantage of growth opportunities,
- Independent advice from people with relevant private sector experience and
- Connection and collaboration opportunities.
The co-funded grants start from $20,000 and go up to $1 million depending on the program accessed and the type of activity being conducted.
Business advisory and planning services, IP strategy and commercialising activities can be funded.
