Companies Undertaking R&D Report Deadline
Improving Your Business - Issue 043
Companies which have a 30 June financial year and undertook Research and Development activities in 2022/23 have to lodge their Research and Development Tax Incentive application with AusIndustry by 30 April 2024.
This summary requires significant information to be lodged relating to Research and Development activities undertaken in 2022/23 Financial Year, and the company is proposing to claim the Research and Development rebate in its taxation return.
For companies with turnovers under $20 Million, this rebate is 43% of the legitimate Research and Development expenditure.
If the company is trading at a loss, the Directors can elect to receive the value of the rebate as a cash refund subject to the company’s losses, exceeding the value of the Research and Development rebate.
If the company’s turnover is over $20 Million, the non-refundable Research and Development Tax Offset is the company’s corporate tax rate plus an incremental premium.
The premium increments are based on the company’s Research and Development Intensity. The intensity is a percentage of the companies’ eligible Research and Development expenditure as a proportion of the company’s total expenditure for the year.
All eligible Research and Development expenditure up to 2% intensity will receive a non-refundable Research and Development Tax Offset equal to the company’s corporate tax rate + 8.5% premium.
Where the companies’ intensity is above 2%, the tax offset is the company’s corporate tax rate + 16.5%.
The application requires details to be submitted of each Research and Development project, with confirmation that the company has maintained a complete record of work undertaken together with the costs of that work and that these records are available for audit if required.
Project plans which show the objectives of the project – prior art searches conducted – new knowledge intended to be produced – confirmation that the outcomes could not have been known or determined in advance – details of professionals that have assisted in the work – identification of the hypothesis or hypotheses that were utilised in the project all have to be shown.
The Board of Directors Minutes approving the undertaking of individual Research and Development activities should be referred to.
The details of the planning of the ‘systematic progression of work’, starting with prior art searches – core activities – what was the strategy for the ‘generation of new knowledge’ – experiments to be undertaken should be included.
A summary of the results of the experiments that have been undertaken for the individual Research and Development projects should be disclosed.
Would You Like To Access Past Editions Of Improving Your Business?
You can do so by going to our website www.towersbusiness.com.au or click on the article below:
4 Key Strategies Need to Be Present – Issue 024
Strategies For Successful Innovation – Issue 025
Budgeting Is Important For Businesses, Charities and Not-For-Profits – Part 1 –Issue 026
Budgeting Is Important For Businesses, Charities and Not-For-Profits – Part 2 – Issue 027
“Goals”, “Assets” and “Metrics” Are Important – Issue 028
50% Funding Opportunities – Issue 030
Strategies for 2024 – Issue 031
Sourcing Funding for the New Grant – Issue 032
Succession, Governance and Disasters – Issue 033
Navigating 2024 Challenges – Issue 034
For Many the Capital Raising Journey Commences with Section 708 – Issue 038
Implementing Processes Similar to Large Businesses Helps SMEs – Issue 039
Continuous Improvement Is a Great Target – Issue 040
Financial Data Helps the Leadership Team – Issue 041
A Board of Advice Helps – Issue 042
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If so , why not send us an email and we will see whether we are able to prepare an article on that subject and include the article in a future edition of “Improving Your Business”.
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