R&D Tax Incentive

Our national team helps innovative companies access the R&D Tax Incentive.

The R&D Tax Incentive is a business assistance program administered by the Australian Government, to encourage and support businesses to undertake R&D activities that they may not otherwise be willing to attempt.

The R&D Tax Incentive provides a tax offset of:

  • 38.5% - for entities with aggregated annual turnover of $20 million or greater. If the resultant tax offset exceeds the entity’s tax liability, the balance can be carried forward for use in future years.
  • 43.5% - for entities with aggregated annual turnover below $20 million. If the tax offset exceeds the entity’s tax liability, the balance is paid to the entity in cash.

The benefit is accompanied by a rigorous regulatory regime, characterised in recent years by heightened review activity by the ATO and AusIndustry. Claimants need to focus on thorough eligibility assessment and substantiation of claims - PwC’s C.A.S.E. methodology was specifically created for this purpose.

We advise clients from iconic multi-nationals through to nimble start-ups, and everything in between. In addition to supporting our clients with claim compliance and preparation, from start to finish, we assist with reviews and audits associated with R&D Tax Incentive claims.

Agriculture

Agriculture

Have you thought about how the following affects your R&D claim:

  • How do you separate costs incurred on R&D activities from ordinary farming activities?

  • Application of a feedstock adjustment to inputs used in undertaking R&D activities.

  • Is your R&D directly or indirectly related to producing goods or services? Do you know how this may impact on R&D eligibility in terms of the “dominant purpose” test?

Do you have contemporaneous records to substantiate your R&D activities and expenditure?

Talk with us to better understand your claim.

 

Biotechnology

Biotechnology, Medtech and Pharmaceutical

Have you thought about how the following affects your R&D claim:

  • Where are clinical trials undertaken? 

    • Is your research “foreign-owned” - do you meet all the eligibility criteria? 

    • Do you need an Advance/Overseas Finding - do you meet all the eligibility criteria?

  • Who conducts your clinical trials and other research activities?

    • Are all activities conducted “for” the correct entity?

  • Did you receive any government grants? Do you know how this may impact on your R&D claim?

Do you have contemporaneous records to substantiate your R&D activities and expenditure?

Talk with us to better understand your claim.

 

Engineering

Engineering and Manufacturing

Have you thought about how the following affects your claim:

  • How do you distinguish between core R&D activities and routine engineering?

  • How do you identify when R&D stops during a production trial?

  • Did you produce prototypes during your research activities and have you considered how feedstock adjustments may impact your claim?

  • Is your R&D directly or indirectly related to producing goods or services? Do you know how this may impact on R&D eligibility in terms of the “dominant purpose” test?

Do you have contemporaneous records to substantiate your R&D activities and expenditure?

Talk with us to better understand your claim.

 

IT and Software development

IT and Software Development

Have you thought about how the following affects your R&D claim:

  • How do you distinguish between routine software development activities and core R&D activities?

  • The types of business documentation available to evidence that software development activities in the R&D claim meet all the eligibility criteria

  • Software development conducted for internal business administration

  • Is your R&D directly or indirectly related to producing goods or services? Do you know how this may impact on R&D eligibility in terms of the “dominant purpose” test?

Do you have contemporaneous records to substantiate your R&D activities and expenditure?

Talk with us to better understand your claim.

 

Mining

Mining

Have you thought about how the following affects your R&D claim:

  • At what point can the application or adaptation of existing technology be considered a core R&D activity?

  • When do R&D activities actually commence and finish within the overall project?

  • Do you know how the feedstock rules apply to your R&D claim?

Do you have contemporaneous records to substantiate your R&D activities and expenditure?

Talk with us to better understand your claim.

 

Start-ups

Start-ups

Have you thought about how the following affects your claim:

  • The impact of capital raising on your aggregated turnover

  • Do you know how your business structure can affect whether you can claim R&D?

  • Have you considered an Early Stage Innovation Company (ESIC) application?

  • Do you understand the impact of payments to associates and how this affects your R&D claim?

  • Are you planning to expand overseas? Do you know how this can impact your R&D claim? 

  • Is your R&D aligned with your business strategy?

  • Do you have a vision for your Start-up to Scale Up? Talk to us about our PwC Align program to capitalise on PwC’s infrastructure and networking.

Do you have contemporaneous records to substantiate your R&D claim and expenditure?

Talk with us to better understand your claim.

 

Contact us

Richard Gregg

Incentives & Innovation Leader, PwC Australia

Tel: +61 7 3257 5117

Imelda Alexopoulos

Partner, PwC Australia

Tel: +61 8 8218 7083

Amanda Gell

Partner, PwC Australia

Tel: +61 8 9238 3515

Marcus Tierney

Partner, PwC Australia

Tel: +61 3 8603 4358

Sophia Varelas

Partner, PwC Australia

Tel: +61 3 8603 3247

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