This week, GrantReady was invited to meet with AusIndustry and the ATO as part of the Research & Development (R&D) Tax Incentive Stakeholder Reference Group.
This exclusive meeting happens a few times a year for a select group of R&D advisers and there is always a lot that gets discussed.
While we cover the highlights of the meeting, it is worth noting that many other important topics were discussed. However, time is a precious resource and we want to provide our readers with the most significant takeaways.
If you are a GrantReady client or referrer, please get in touch and we can provide you with insights unique to your business or client.
Keep an eye out for Part 2 next week, where we reveal the $13.4 billion worth of R&D expenditure and where it is going.
First off, mark your calendars because the deadline for registering R&D tax claims this year has been moved from April 30th to May 2nd in recognition of the public holidays.
This change provides extra time for businesses to get their claims sorted out and submit them to the ATO before the deadline.
However, applicants must use an online portal to apply for the R&D tax incentive, and the principal authority for the R&D entity must first set up access. AusIndustry advised applicants to set up portal access ahead of the May 2nd deadline to avoid processing delays. GrantReady has already established this and is ready to submit applications early to avoid delays. Contact us so we can help you submit on time or even early.
But it is not all good news. The ATO is targeting compliance issue around incorrect disclosures of associates and payments to associated entities this year. This can impact your claim.
Associates are those that can be connected to the R&D entity through family or business connections, and payments can include constructive payments. So, be sure to keep your payment records straight and call us if you have any queries.
If you are in the software industry and seeking more certainty on the eligibility of certain activities, AusIndustry is conducting a pilot program with software companies to streamline the Advanced Finding process and deliver faster decisions.
This could be a game changer for many businesses, especially in the technology and software industries. We are keeping an eye out for the results of the pilot program and are happy to discuss whether this is the right approach for you.
The Game Changer
If you are a game developer in Australia, it is time to level up your tax strategy with the new Digital Games Tax Offset (DGTO). This refundable tax offset provides a whopping 30% rebate for eligible businesses that spend at least $500,000 on qualifying Australian development expenditure.
Whether you are developing the next blockbuster game or enhancing existing ones with ‘live ops’, the DGTO can help power up your business and bottom line.
A heads up, Games with gambling elements or those that cannot achieve classification will not be eligible for the DGTO.
That’s the Scoop
That is the latest insider scoop on the R&D Tax Incentive in Australia.
Keep an eye out for part 2, next week where we expose the data on who is getting R&D support and if you are a client, please reach out to us so we can provide more information
We are grateful to the ATO and AusIndustry for involving us in the process and thank them for their continued support. We know how important this program is to our clients and we will continue to advocate for you.
And if you are looking to get your application in, GrantReady is here to assist you every step of the way. Contact us to find out how we can help you get the most out of your R&D tax claims before May 2nd, 2023.