Software development is critical to the Australian economy and can be undertaken across all sectors, which effectively means companies can access theR&D Tax Incentive.
Booming sectors of Software 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”.
Software development is an industry in its own right as well as an enabler of other industries. If you are in an industry such as manufacturing, mining or technology, and you develop software to facilitate your R&D, then this content will also be of interest to you.
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:
Development of new operating systems or languages, plugins, updates, program versions, etc.
Design of new search engines based on original technologies.
Efforts to resolve conflicts within hardware or software based on the process of re-engineering a system or a network.
Creation of new or more efficient algorithms based on new techniques or approaches.
Creation of new and original encryption or cybersecurity techniques.
Modifications and improvements to an existing code.