Research & Development Tax Incentive

Proof of conducted R&D activities is demonstrated to the ATO and AusIndustry by keeping adequate records. Your records must allow for the verification of three points:

1. The nature of the R&D activities
2. Expenditure incurred on R&D activities
3. Relationship of the expenditure to activities

The ATO recognises two types of records, contemporaneous and non-contemporaneous. Contemporaneous records are the one you make around the time you plan, and conduct activities are your your evidence as to why and how you conduct your activities. Non-contemporaneous records are created outside the period of your R&D activity, yet relate to that R&D activity. While both are eligible, contemporaneous records are preferred.

Salaries and wages typically form the largest component of R&D claims. You are required to maintain accurate records of the percentage of time staff spend on eligible R&D activities. The most effective method is through consistent documentation, including timesheets, job logs, meeting minutes, and basic Excel spreadsheets. Weekly tracking of R&D tasks and corresponding time allocations is essential, as all claims must be substantiated with evidence.

SUPPORTING DOCUMENTS

As long as we can prove R&D activities were conducted only with the intention of achieving eligible core and supporting activities, the records can be kept in any way.

Possible ways you can keep your records includes:

• Contractor Invoices
• Project Planning Documents
• Progress Reports
• Minutes of Project Meetings
• Test protocols, test results, analysis of test results and conclusions

If you have any questions or concerns regarding how to keep detailed records, Grant Help can provide you with templates and guides to use during the project's duration.

Grant Help assists businesses with the R&D program by providing valuable insights from ex government officials on how to best present your application. Grant Help's consultants have over 20 years' experience working with the R&D program. While the main component of our service is creating a tailored technical analysis and drawing out any claimable expenses to calculate the maximum possible reimbursement from your application; we are available to help you through any reviews or audits after the grant application.

If you are interested in assessing your eligibility for the R&D program, looking for new grant opportunities, or know any other businesses that may be able to benefit from this program, reach out to Jasper Steel, the head of Grant Help's Research and Development division.