The Research and Development scheme (“R+D”) is administered by AusIndustry (a Federal Government body) who’s objective is to support innovation amongst Australian businesses with the aim of building a more robust and diversified economy.
Businesses are given increased deductions for all eligible expenditure on innovation and depending on the size of their turnover, will receive either a refund of cash or a tax rebate.
Here are some basics FAQs around the R+D scheme:
- All expenditure that is approved for the R+D scheme is to be capitalised in your financials (moved to the balance sheet) and is subsequently no longer a tax deduction on your tax return,
- AusIndustry requires you to provide the above figures, with explanation on what the innovation was and walk through the stages and break downs of costs, they then determine the R+D applicable amount. You then receive an application number to put into your tax return and any amounts to be paid to your business, go through the ATO.
- When you receive your R+D cash refund, it’s to be recognised as income in the year which it is received, it’s not a tax exempt payment. If you receive an offset, it’s simply applied against your tax payable.
How we can help
The compliance team at Interactive (headed by Gareth Bryant) added R+D to their repertoire for the 2012 year, with a 100% success rate and we are planning for 2013 tax season now so as businesses can get their capital injection as early as possible, as soon as you’re ready to file (can file starting July 1).From personal experience, the preliminary work and breaking down projects is the time consuming bit and you can get started on 90% of that work Today and begin consulting with our expert team to make sure the numbers tie up and we will move to file the R+D application as early as possible.
Unlike other providers, we charge a fixed fee, not a % of your refund. We’re not real estate agents, we are providing a service.
If you’re keen to have our team execute the R+D process and help obtain a capital injection in early July, send us a quick emailand or fill in a contact form we will be in touch!
R+D Update: Moving to quarterly assessment (January 2014)
In 2011, the government announced that for businesses with under $20m in turnover, the R+D refundable tax offset is moving to a quarterly reimbursement scheme to help businesses that rely on the offset to have a better working capital scenario.
Interactive Accounting is a Chartered Accounting Firm with a team of tax savvy experienced accountants that have a broad range of experience across many areas. We provide advice on start-up, growth, scaling and exiting for businesses and their supporting parties and shareholders.
With the ability to provide all these services online in a scalable and friendly manner, you get a truly Interactive experience!
if you have a question, don’t be afraid to ask our team