Industry Innovation and Science Australia (AusIndustry) and the Australian Taxation Office (ATO) are jointly responsible for administering thetax incentive in Australia.
Booming sectors of science 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”.
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:
Developed an innovative product, service, device or process,
Outsourced research activities (Qualified Research must take place in California in order to qualify for the California credit),
Licensed new technology and tried it on a trial basis.
Attempted to solve an industry-wide problem
Completed trials that led to lost goods.
Other activities intended to generate new knowledge.