April 2014 Lodgement Deadline for your Research and Development Tax Claim
As the cut-off for lodgement of R&D Tax claims approaches, companies should now be turning their focus to the preparation and registration of their R&D tax incentive claim for 2013.
Registration of claims for the R&D tax incentive can take place up to 10 months after the financial year in which the R&D activities took place. For companies looking to claim for the 2013 FY (ending 30 June 2013), lodgement can take place up to 30th April 2014.
Are your current business activities eligible for the R&D Tax Incentive?
Australian businesses that innovate are twice as likely to boost their productivity, 2.5 times more likely to increase staff, 4 times more likely to increase their range of goods or services offered, 3 times more likely to export and 18 times more likely to increase the number of overseas markets targeted.¹
Many businesses are missing out on government incentives for formal and informal research and development (R&D) through a lack of planning and effective process management.
The R&D Tax Incentive is a government initiative that provides easy to access support to help businesses undertake R&D activities and develop:
- New knowledge; and/or
- New or improved products, devices, materials, services and/or processes.
What is the R&D Tax Incentive?
The R&D Tax Incentive is the Australian Government's principal measure to encourage industry investment in research and development. It is a broad-based, market-driven tax offset program that aims to boost company competitiveness, improve productivity and deliver economy-wide benefits to Australia.
The program is available across a broad across a range of sectors, including agriculture, biotechnology, manufacturing, mining and ICT.
The R&D Tax Incentive provides generous benefits for eligible R&D activities. The two components of the program are:
- A 45% refundable tax offset (equivalent to a 15c in the dollar benefit) for eligible entities with an aggregated turnover of less than $20 million per annum; or
- A non-refundable 40% tax offset (equivalent to a 10c in the dollar benefit) for all other eligible entities.
The R&D Tax Incentive is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO). Innovation Australia is primarily responsible for administering the technical eligibility and registration of R&D activities.
How we can help you?
Moore Stephens and the Impact Innovation Group have combined to provide a comprehensive framework aimed at assisting your business with:
- R&D strategy - defining how your R&D outcomes will drive competitive advantage.
- R&D planning and tools - to maximise the impact of your formal and informal R&D activities.
- R&D linkages - facilitating partnerships and collaborations including linkages with Australia's leading research universities.
- Eligibility assessment advice – to determine the eligibility of your company and its R&D activities for the R&D Tax Incentive program.
- Claim preparation advice and assistance – to ensure your company's R&D Tax Incentive claim potential is maximised.
- Program registration – registration of R&D activities with AusIndustry so that your business can claim the R&D Tax Incentive through its annual tax return with the ATO.
- Record keeping and compliance assistance – to augment your claim potential and ensure that sound, contemporaneous record keeping practices are adopted to demonstrate the claim eligibility and compliance.
Why choose Moore Stephens and the Impact Innovation Group?
Companies have the potential to gain significant advantage from well structured R&D activities, including the realisation of tax offset opportunities.
Together, the Impact Innovation Group and Moore Stephens Queensland can provide your business with the technical and accounting expertise required to develop your 'next generation' of competitiveness and ensure you maximise your R&D Tax Incentive claim to fund this critical phase of business development.
This publication is issued by Moore Stephens Australia Pty Limited ACN 062 181 846 (Moore Stephens Australia) exclusively for the general information of clients and staff of Moore Stephens Australia and the clients and staff of all affiliated independent accounting firms (and their related service entities) licensed to operate under the name Moore Stephens within Australia (Australian Member). The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Moore Stephens Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication. Copyright © 2014 Moore Stephens Australia Pty Limited. All rights reserved.
