The design and development activities of Engineering Firms creating structural, mechanical, and electrical systems can be considered qualifying activities to earn theR&D Tax Credit
Booming sectors of Engineering include:
“The reality is many companies feel as if they need to be the next Google and develop cutting edge technology to access R&D Tax Credits. Little to their knowledge, the R&D scheme requires a company to ‘overcome technical uncertainties’ whilst ‘seeking an advance in science or technology. Therefore, it is a lot broader than what people think. At BourkeHood, we are on a mission to deliver and simplify this process to as many companies as possible”.
The engineering sector is broad and can span across different industries. R&D could occur in any project where you attempted to resolve scientific or technical uncertainty and sought to advance in your field.
Applications can be made at any time and must be within 10 months of the end of the income year. Eligible costs include salaries, contractor costs, depreciation, materials, overheads (rent, travel, insurance, electricity, utilities, telephone & internet etc).
To qualify, you need to be a limited company incorporated in Australia, subject to Australian Corporation Tax, and have spent a minimum of A$20k on development costs related to the R&D activity.
The company’s turnover must be less than AUD 20M.
The company must be working on new or improved Products/ Processes/ Systems/ Platforms/ Machinery etc, must bear financial risk in the process, and the staff involved in R&D activities must be expanding their technical knowledge.
The company must be able to provide sufficient documentation to show the systematic approach undertaken and the technical challenges encountered.
Qualifying Areas include:
Designing functions aimed at improving performance, reliability, quality or safety requirements,
Development or improvement of construction equipment, technology, infrastructure etc.
Capacity analysis and assessment of equipment to meet demand,
Developing new or improved systems for heating, air conditioning, etc.
Materials engineering and design,
Improving existing products in innovative ways.
Engineering, design and production of safety equipment.
Developing tests to check and model performance of machinery or technology in different environmental conditions,