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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.

Although tech-enabled businesses are increasingly attractive for investors, many Early Stage Innovation Companies (ESICs) face stiff competition for investor capital. That’s why the Australian Government’s ESIC measures to incentivise investment in these companies are key to supporting the Federal Government’s sovereign manufacturing innovation agenda.

With environmental, social and corporate governance (ESG) and sustainability front of mind for all organisations and reporting requirements on the horizon, it’s important to understand what tax obligations are at play. As the ATO focuses on transparency and governance, it’s important to ensure tax obligations are appropriately incorporated in policies, frameworks, controls, and these are tested to ensure that the business is operating in line with the Group’s tax risk appetite.

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.

Biotechnology organisations often grapple with three key trends – where the next round of funding will come from, how to attract specialised talent to support vital innovation, and how to tackle manufacturing and scale up. They seek stability and certainty in funding to ensure projects are supported and reach their full potential. How can the upcoming Federal Budget announcement better support this sector?

Real Estate and Construction (RE&C) companies are continuously looking for ways to innovate, optimise processes, remain competitive and ease the pressure. To incentivise innovation activities onshore, the Federal Government’s Research and Development Tax Incentive (RDTI), Australia’s flagship innovation program, is available to support businesses across all industries undertake research and development (R&D) activities.

Today, Austrade announced the opening of the next round of the EMDG program.

The 30 April 2023 deadline is fast approaching for companies looking to lodge a R&D claim for the 30 June 2022 financial year.