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R&D Grants

Harness the Advantages of the Research and Development (R&D) Tax Incentive

Effectively managing the complexities of the Research and Development (R&D) tax incentive and other business grants can be a daunting task, often resulting in missed opportunities. However, with the assistance of our specialized R&D Tax and Grants experts, you can navigate the entire process seamlessly.

The R&D tax incentive, a federal government initiative, aims to foster innovation and entrepreneurial spirit among Australian businesses. This incentive offers businesses the opportunity to either receive a tax refund or reduce their tax liability based on their investments in eligible Research and Development projects throughout the financial year.

For early-stage businesses, the offset provided is notably generous and can result in a cashback amount of over 40% of expenditure for businesses in a tax loss position.

Moreover, numerous business grants and incentives are available to support business owners, including:

  1. Export Market Development Grant (EMDG): Geared towards aspiring and existing exporters.
  2. Early Stage Innovation Company (ESIC) incentive: Designed to connect qualifying start-ups with investors.

Additionally, we can facilitate an advance on your anticipated R&D refund through our partner for R&D finance. This arrangement allows you to access your pending R&D tax refund ahead of schedule, acting as a loan secured against it. Depending on the type of R&D finance, businesses can access their R&D funds multiple times throughout the year or receive a lump sum in advance.

Instead of investing your time and effort in deciphering and navigating the claim process for the R&D tax incentive and other business grants, consult one of our experts who will guide you through the entire process with expertise and efficiency.

We Can Help You Access

We handle all parts of the R&D tax claim process, such as:

  • Evaluating all of your business’ activities.
  • Finding and defining R&D activities.
  • Checking internal documentation to support the claim.
  • Writing R&D project documentation.
  • Fill and submit the Application for Registration.
  • Estimating eligible R&D expenses.
  • Writing the ATO R&D Tax Schedule.
  • Answering requests for information.

Frequently Asked Questions

How Do I Know If I Am Eligible For R&D Tax Incentive?

When determining your eligibility for the R&D tax incentive, it is crucial to take into account several requirements. Firstly, you must operate as an Australian-based company and cannot be tax exempt.

To assist you in evaluating your eligibility for the R&D tax incentive, we have developed a set of questions that our experienced R&D experts utilize during the assessment of potential claims:

  1. Was a scientific experiment conducted?
  2. Were you attempting to achieve something unknown or testing the effectiveness of an untried approach?
  3. Were you striving to solve a technical problem?
  4. Did the experiment follow the scientific method?
  5. Was the primary purpose of the experiment to generate new knowledge?
  6. Did the experiment aim to create new or enhanced materials, products, devices, processes, or services beyond what is currently available in the industry?
  7. Did the experiment involve an unknown outcome or carry a technical risk?
  8. Is the desired outcome unavailable on a commercial basis?
  9. Is there a risk that the experiment may fail to produce the intended outcome?

If you responded positively to these scenarios, it indicates that the activity qualifies as a core Research and Development (R&D) activity. It is essential to maintain contemporaneous documentation that substantiates each of the points mentioned above. Conversely, if you answered negatively to any of these questions, the activity may not be classified as a core R&D activity but could potentially qualify as a supporting R&D activity.

For more information and to gain insights specific to your circumstances, we encourage you to get in touch with our knowledgeable R&D and Grants specialists. They can provide further guidance and address any inquiries you may have regarding the R&D tax incentive.

What Are The Minimum Requirements For R&D Tax Offsets?

In order to be eligible for a Research and Development (R&D) claim, a company is required to have incurred a minimum of $20,000 on eligible expenditure. This threshold ensures that companies have made a substantial investment in their R&D activities before they can benefit from the R&D tax incentives provided by the government. By reaching or exceeding this expenditure threshold, businesses demonstrate their commitment to innovative research and development efforts, making them eligible to claim relevant tax benefits and incentives. It is important for companies to maintain proper documentation and records of their eligible expenditure to support their R&D claims during the assessment process.

How likely is it that my claim will be audited?