R&D Tax Incentive deadline delayed

 

R&D Tax Incentive deadline delayed

The Department of Industry, Science, Energy and Resources just provided an update in relation to COVID-19 and the R&D Tax Incentive.

2020-03-24

As the Federal Government’s leading incentive program for innovation, the R&D Tax Incentive offers offsets of up to 43.5% of eligible expenditure to businesses who have engaged in eligible R&D activities. For certain eligible entities whose aggregated turnover is less than $20 million, this tax offset can result in significant cash refunds. Eligible expenditure incurred on R&D activities, which may include salary, contractor and certain other expenses, can be claimed through the scheme.

The Application for Registration of R&D Activities must normally be lodged with AusIndustry within 10 months after year end, which for businesses with a 30 June financial year end would be prior to April 30. Today’s update announces that, if your application for the 1 July 2018 – 30 June 2019 income year cannot be made by the application deadline (30 April 2020) due to any effects of the COVID-19 pandemic, AusIndustry will allow your application to be made by 30 September 2020 without the requirement to request an extension.

Get in touch

ShineWing Australia can assist with the identification and scoping of eligible activities, R&D governance, and preparation and lodgement of the application. We recommend businesses in a refundable position to submit their claim early and benefit from timely processing of your refund and enhanced cash flow during this period of uncertainty.

Sam Morris

E smorris@shinewing.com.au

Stephen O'Flynn

E soflynn@shinewing.com.au

David Wilson

E dwilson@shinewing.com.au

Thomas Demel

E tdemel@shinewing.com.au