Did you know the Australian Federal Government offers a tax incentive for companies undertaking Research and Development (R&D)? If you have an eligible product you could receive the benefit in the form of a tax offset; a refund or saving, depending on your tax position.
With an aim to boost competitiveness and improve productivity across the Australian economy, the R&D Tax Incentive is offered to a range of industries. At Innercode, we’ve chosen to focus solely on the software and technology industry. We are Australia’s only consulting firm specialising in helping companies within this industry through the R&D Tax Incentive claims process. Our clients range from small startups right through to medium and large tech businesses.
The program is administered by AusIndustry and the Australian Tax Office and unlike many of the state-based government grants on offer, the R&D process is non-competitive in the sense that it comes under tax legislation. This means your project is determined to be eligible or it’s not. If it meets the tax legislation, is compliant with the law and the documentation is prepared correctly for the project as well as for the expenditure being claimed, you will receive the benefit.
However, knowing whether your project is eligible is not so clear cut for many companies. As a result, we often find clients coming to us who had previously thought they were ineligible and/or had not been receiving the maximum benefit they were entitled to. What are you waiting for?
Spotlight on compliance
The R&D Tax Incentive encourages companies to engage in R&D that benefits Australia and there is a strong focus on compliance to ensure the funds are channelled appropriately. In fact, the 2018 Federal Budget included an increased allocation of resources to AusIndustry and the Australian Tax Office for audit and review activity.
The crackdown on non-compliant claims is intended to ensure that the incentives are used for their real purpose. At Innercode, we’ve always been a compliance-focused business and we support this approach. We believe that a fair application of the incentive is the only way to drive forward innovation. We stand by this through our commitment to not charge additional fees for any audits or reviews that may come from our claims in the future.