Issues Guidance released to help R&D applicants and advisors
The Department of Industry, Innovation and Science has developed new guidance to help companies and tax advisors to correctly identify and register activities for the R&D Tax Incentive. The new guidance has been prepared to assist companies undertaking R&D activities in the industries of software development agriculture, building and construction; and mining to avoid common errors in their self-assessment.
Specific Issues Guidance products provide companies and advisors with targeted information on a current issue in the R&D Tax Incentive. The four new Specific Issues Guidance documents are:
- Getting software development R&D Tax Incentive claims right
- Getting building and construction R&D Tax Incentive claims right
- Getting mining R&D Tax Incentive claims right
- Getting farming R&D Tax Incentive claims right
View the full list of helpful guides on business.gov.au.
R&D Tax Incentive programme: 'Applying the Law'
‘Applying the Law’ information aims to provide companies and advisors with specific facts regarding the application of law to the R&D Tax Incentive programme.
This is a new form of guidance which presents anonymised findings that have been made by Innovation and Science Australia and the Department on real companies conducting real activities.
2016/01 - Mining projects to extract minerals
A company’s registered activities were found to be ordinary mining activities using established technologies in a new site.
2016/02 - No new knowledge - agriculture
A farming company registered activities and applied products to its land where the outcome could have been known or determined in advance.
2016/03 – ‘Whole of farm’ claim
A company applied agricultural products to its entire farm.
More ‘Applying the Law’ information will be progressively released by the department in future information bulletins. View the guidance on business.gov.au.
Snapshot of the R&D Tax Incentive programme performance (2015)
2015 was another record year for R&D Tax Incentive programme participation: more than 15,024 companies and R&D expenditure of $17.89 billion were registered as at 30 September 2016.
The number of registrants for 2015 increased by around 10 per cent, with the strongest growth in small registrants (turnover of less than $20 million), increasing from around 10,330 to around more than 11,600 R&D-performing companies (+12.5%) over the period.
The first stage of the R&D Tax Incentive Review is now complete
The R&D Tax Incentive Review report public consultation process, which closed on 28 October, attracted strong interest. The department received 166 online survey responses and 153 submissions, held 20 nationwide feedback sessions attended by 165 people, in addition to several Ministerial roundtables and meetings with stakeholders.
The Government will now begin to develop its response to the Review. The second and third phases of consultation are planned from November 2016 prior to the Government releasing its final response to the Review as part of a broader National Innovation and Science Agenda in early 2017.
Read the non-confidential submissions received so far and find out more about the R&D Tax Incentive review on business.gov.au.
What do you think of the R&D Tax Incentive Information Bulletin?
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