Posted By: R&D SmartTax

Companies can start claiming cash benefits of Australia’s new R&D Tax Incentive from 1 July 2012, but are you aware of three important things you may need to do before 30 June arrives?

1) Finalise Payments to Associates
If your company has incurred R&D expenditure to an associated entity and wishes to claim it, the payment needs to be finalised in cash through the bank accounts in the year it wishes to claim. If payments are not finalised the company will either forgo the R&D tax offset benefit or else elect to claim it in the year the payment becomes finalised. It is important to note that where expenditure is to be claimed as an R&D tax offset, it is no longer allowable as a normal tax deduction to the company.

2) Apply for Advance Findings
Innovation Australia is encouraging SMEs to apply for Advance Findings which are a mechanism to provide advance certainty about the eligibility of R&D activities. If your R&D activities relate to the 2012 financial year, then you need to submit your Advance Finding before 30 June.

3) Apply for Overseas Findings
Similar to Advance Findings you will be eligible to claim for substantial overseas activities if you have an approved Overseas Finding. This must be applied for by 30 June.

Although these 3 things will need to be undertaken prior to 30 June, most other things relating to the R&D Tax Incentive will need to wait until after 30 June. The reason for this is due to the delay in the release of important guidance material by Innovation Australia which is designed to provide more certainty to companies about the eligibility of activities and expenditure for the R&D Tax Incentive program.

Unfortunately this will require further patience from the business community who rely upon the funds in the R&D Tax Incentive to help fund ongoing business operations and further investment in R&D. However to be hasty in submitting applications may mean unnecessary exposure to risk or conversely the potential for claims not to be maximised.

To find out if your business and projects are eligible for R&D Tax Incentive funding, please click here and use our FREE R&D Eligibility Wizard tool.

About R&DSmartTax

R&D SmartTax tools were born out of a desire to help the many smart small Australian companies access the R&D Tax Break benefits without the need for hours spent reading tax literature or expensive consultant fees. The R&D Eligibility Wizard is designed to be low cost, easy to use and available for all Australian industries.


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A. Blauensteiner
Australian Institute of Commercialisation

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