Is your business innovating and experimenting? It could mean that you are eligible to claim the R&D Tax Incentive.
Administered jointly by AusIndustry and the Australian Taxation Office (ATO), the R&D Tax incentive aims to encourage companies to engage in R&D, in turn boosting competitiveness and improving productivity across the Australian economy.
If your business is eligible, the R&D Tax Incentive can be used to offset expenses incurred on R&D activities, the decline in value of depreciating assets used in R&D activities and more. Find out more about the eligible deductions .
Canberra business, eWAY is just one example of a local business taking advantage of the program. The business has been accessing the incentive for a number of years now with eWAY CEO and founder, Matt Bullock saying the benefits the program have given them have been invaluable.
“Our global operations centre runs out of Canberra, which also houses the R&D team. Without R&D Tax assistance we would not have been able to develop our world-class payment solutions.”
“At eWAY, we’re always looking to improve and innovate. Our every success leads to additional resources, which can be used to drive further wins. The R&D program has not only given us access to tax benefits, it has also helped guide us in project management best practice and ensuring R&D effort is focused on driving innovation within the business” Mr Bullock continued. Read more about eWAY’s and other R&D tax incentive business stories .
So is your business entitled to the R&D Tax Incentive? There are a number of criteria your business and your R&D activities will need to meet. To find out more about these criteria and see if you are eligible check out StartUp Smart’s article How to determine whether you quality for the R&D tax incentive .
If you are planning to claim under the R&D Tax Incentive you must register your eligible R&D activities with AusIndustry. You are required to complete this registration process each year you plan to claim.
You need to register your activities within 10 months of the end of the income year in which the activities were conducted. For example, if your business operates on a standard financial year (1 July to 30 June) you must register by 30 April 2014.
To register for the R&D Tax Incentive visit the AusIndustry website . To find out more about the program visit the AusIndustry and Australian Taxation Office websites.