In an effort to enhance transparency within the business community, in 2020 several new measures were introduced into the legislation that governs the R&D Tax Incentive. This included a new requirement for the ATO to publish certain details about companies who have claimed the R&D tax incentive as well as details about their claims. This initiative aims to improve public accountability for R&D claimants and to encourage voluntary compliance with the R&D program.
The information published will include:
- Name of the entity claiming the R&D tax incentive
- Australian business number (ABN) or Australian company number (ACN)
- The entity’s total expenditure on R&D, less any feedstock adjustments
Two Years Ago: Looking Back
Whilst the ATO will not start publishing details until September 2024, they have been contacting claimants, and their tax agents, confirming this requirement.
This time gap allows companies to ensure that the information being shared is accurate and up to date while preventing any immediate impact on their competitive advantage. It is a measured approach that respects the need for businesses to protect sensitive data and maintain their strategic positions.
No Additional Burden on Companies
It is important to note that these transparency requirements will not impose any additional obligations on the companies. The ATO recognises that businesses have various concerns and responsibilities to balance, and the program is designed to provide transparency without adding unnecessary red tape.
Whilst this is a new measure for R&D Tax, publishing information about the recipients of government incentives is not new. The Federal government has for many years published information about grant recipients for 100s of programs, including details about the recipient, the amount of grant received and a description of the project.
GrantReady supports the governments approach to transparency and recognises its role in building trust and confidence. We will work with our clients to address any concerns they may have as the September 2024 publication date draws closer.