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Research & Development Tax Incentive
A viable option for businesses spending over $20,000 on eligible Research & Development, offering up to a 43.5% refundable tax offset.
Minimise financial risk, maximise innovation. Unlock the full potential of your business.
The Australian Federal Research and Development Tax Incentive (R&DTI) is a progressive initiative designed to foster innovation, development, and the expansion of knowledge across industries. This program is dedicated to supporting businesses in generating new understandings, products, software, technology, and more, contributing to the broader advancement of Australia’s economy.
Who is eligible?
To qualify, your business's project must demonstrate technical risk, contribute to the discovery of new knowledge, and show considerable novelty. Only companies (excluding trusts, partnerships, or sole traders) that invest a minimum of $20,000 AUD in eligible Research & Development activities conducted within Australia and own the resulting IP or end product are eligible.
What are the benefits?
If your business is innovative, attempting to create new knowledge, or bridging an industry gap, you may be eligible for up to a 43.5% refundable tax offset on money already spent. This reduces the monetary risk of innovation and encourages the growth of your business.
Refundable VS Non-Refundable offsets
Eligible companies can receive a tax offset for eligible R&D expenditure. The amount of the offset is determined by several factors, including the time, personnel, and resources dedicated to the R&D project.
18.5% to 43.5% refundable tax offset for companies with a group turnover below $20 million
8.5% to 16.5% non-refundable tax offset for companies with a group turnover above $20 million.
These offsets help reduce the financial risks associated with innovation, fostering business growth and development.
The Research and Development Tax Incentive (R&DTI) offers retrospective reimbursements for innovative research and development of new products, software or knowledge. The R&DTI is jointly administered by Industry Innovation and Science Australia (IISA) and supported by the Department of Industry, Science and Resources (DISR), and the Australian Taxation Office (ATO).
Under the program, eligible companies can receive a tax offset or cash back for eligible R&D expenditures. The offset is designed to partially reimburse the cost of R&D activities and can be claimed as a tax offset in the company's tax return.
We, at Grant Help, guide you through the compliance requirements for the R&DTI and what you can anticipate if your company is chosen for a review or an audit by the ATO. We offer you direction and support, ensuring that you have the necessary resources and information to navigate through the review and audit if your company is selected.
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:
- The nature of the R&D activities
- Expenditure incurred on R&D activities
- 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.
A simple process.
We guide you every step of the way.
We assess your eligibility.
Our process begins by learning about your business and educating you on available program's to determine which grants & incentives are best for your business.
We gather and analyse the documentation.
A successful application depends on the strength of supporting evidence. We collect and take stock of the documentation that you have.
We assemble and lodge your grant.
After putting together the best possible application, our experts lodge your submission, ensuring that we adhere to all compliance requirements.
We represent you through the grant and audit process.
We offer an end-to-end service, representing you during the submission and audit processes to ensure you are fully supported at all times.
We source ongoing funding opportunities for your business.
We maintain long term relationships with our clients and work hard to source ongoing funding opportunities for your business.
Your business is in good hands with Grant Help.
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