The 30 April 2025 deadline is fast approaching for companies looking to lodge a R&D Tax Incentive claim for the 30 June 2024 financial year.
What is the R&D Tax Incentive?
The R&D Tax Incentive (RDTI) is the Federal Government’s flagship program to support and encourage innovation, research and development activities undertaken in Australia. This program is available to companies across a broad range of industries and business activities.
The RDTI has several levels of support including a refundable offset equal to the company’s corporate tax rate plus an 18.5 per cent premium where annual aggregated turnover is less than $20m (grouping rules apply). In some cases, this could result in a cash refund from the ATO.
Alternatively, if turnover is greater than $20m (grouping rules apply), the offset is non-refundable but can be carried forward. The offset rate is equal to the company’s corporate tax rate plus 8.5 per cent, up to 16.5 per cent determined by the R&D intensity for the income year. The higher rate is available to companies that achieve an R&D intensity of greater than 2 per cent of their total expenses.
Why act now?
To register your R&D activities with the Department of Innovation, Science and Resources (DISR) you must submit your R&D Application no later than 10 months after your company year-end. For companies with a 30 June year-end, the deadline to lodge your R&D Application is 30 April 2025.
If a company does not lodge an R&D Application before the deadline, it risks permanently losing the ability to make an RDTI claim for that financial year.
As the RDTI is a self-assessment based program, it is critical that you consider the R&D eligibility criteria, legislative requirements, guidance, and alerts as part of preparing your R&D Application Form. Further, companies should ensure that they have documentation to substantiate the eligibility of any R&D activities in line with the legislative criteria in the event of a review, audit by AusIndustry, or the ATO.
How we can help
Our national team of experts is here to assist you with the R&D Tax Incentive claim process. We can help you determine eligibility, review your R&D documentation, and ensure your application is lodged correctly and on time.
Our specialists can assist with:
- Identification of R&D activities.
- Assistance with the preparation of the annual R&D claim with a focus on ensuring all the relevant provisions have been considered and that a robust, defendable R&D claim is submitted.
- Undertaking an R&D documentation workshop with the aim to provide guidance and feedback on the existing documentation practices in place.
- Preparing a tailored R&D governance document which outlines the governance standard and approach for claiming the R&D tax incentive.
- Assistance with the preparation of an Overseas Finding Application.
- Assistance with ATO and AusIndustry reviews and audits and advise on other available government assistance programs.
If you have any questions or need assistance with your R&D Tax Incentive claim, please do not hesitate to contact us. We are here to support you every step of the way.
Learn more about how our Research and Development (R&D) Tax Incentive services can help you
