Completing the Research and Development claim

Details are required to be submitted for the individual R&D projects, which are the core R&D activities showing the cost for:

• Labour and on costs

• Contractors

• Professionals

• Other direct costs

Documentation is required for each of these components:

• Timesheets for employees.

• Tax invoices with details of the projects that these services were provided for from contractors and professionals.

• General overhead expenses can be claimed if an appropriate methodology has been utilised.

Costs incurred relative to supporting R&D activities which were supplied to support the core R&D activities are claimable. Documentation must be prepared to support the claim being made for supporting R&D activities.

If any of the goods or materials acquired or produced by the company have been transformed or processed during the R&D activities, where that transformation or processing results in the production of one or more tangible products that the company can sell or utilise, then there needs to be a “feed stock adjustment”. This is an amount calculated to be included in the company’s assessable income the effect of which the R&D extra benefit is not claimable if the company is able to sell those products.

There can also be a requirement to prepare a “clawback adjustment”, where the company has received a contribution from the Federal, State or Territory government organisation as a contribution towards a R&D project.

The preparation of the R&D claim can be complicated.

Towers Business Development can help you navigate through the R&D process and can assist in the preparation of the required records. To find out more, contact us on 1800 232 088 or .