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The ATO released its first annual R&D Tax Transparency Report. This initiative stems from the R&D reforms brought into effect from 1 July 2021, along with the increased focus on corporate tax transparency and is designed to provide a new level of transparency into the R&D Tax Incentive program.

The Australian Taxation Office (ATO) continues its commitment to tax transparency and encouraging voluntary compliance by beginning to publishing data on R&D Tax Incentive claim outcomes.

If you have carried out eligible Research & Development (R&D) activities in Australia during the current financial year ending 30 June 2024, now is the time to ensure you are well prepared to lodge a potential 2024 R&D claim.

The Australian R&D Tax Incentive (RDTI) is the key federally funded program for encouraging and supporting businesses undertaking innovation, research and development onshore in Australia.

The Administrative Appeals Tribunal (AAT) has recently affirmed the Commissioner of Taxation's authority to assess and determine the eligibility of taxpayers' registered R&D activities, upholding the Commissioner’s decision.

If you performed eligible Australian-based R&D activities during the financial year ended 30 June 2023, the 30 April 2024 deadline to register your activities with AusIndustry is fast approaching.

A recent case decided by the Administrative Appeals Tribunal (AAT) in December 2023 (Active Sports Management Pty Ltd and Industry Innovation and Science Australia) has found the registered activities were neither eligible core or supporting R&D activities as defined by the Income Tax Assessment Act (ITAA)1997 .

The ATO has recently released two new taxpayer alerts (TPAs) relating to activities delivered by associated entities (TA 2023/4) and activities conducted overseas for foreign related entities (TA 2023/5).

Innovation is a key driver of productivity for businesses. To help them achieve their objectives, the government offers various programs such as the R&D Tax Incentive and government grants.

In line with the focus on tax transparency, good governance and paying your fair share, the ATO is also focused on ensuring the integrity of the R&D Tax Incentive (RDTI) program. This is not surprising given the important role the RDTI plays in fostering Australian-based innovation, research and development.

With growing business appetite for innovative financial technology and on-demand finance in recent years, Fintechs have been embraced by businesses and consumers alike. Fintechs now have the opportunity to drive change, expand into other industries – and sometimes even scale up and expand into new markets. As we near business planning season and end of financial year, have you considered how R&D Incentives, tax considerations and a governance structure can support your sustainable growth?

In this episode, Partners and Innovation and Incentives specialists Rebecca Iwanuscha and Sukvinder Heyer discuss the importance of innovation, what to expect in the May Federal Budget, and what we want to see from the Government in terms of support in this space.