TaxTrex
TaxTrex

Creating an environment for Digital Disruption

We all understand that the world is changing very quickly, driven by fundamental advances in technology. The internet – reinforced by sophisticated logistics and new business models – now exposes every company to global competition and new disruptive technology.

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All industries are impacted by digital disruption: lower cost of computing; greater connectivity/bandwidth; automation and robotics; artificial intelligence and new software development tools; new business models and the sharing economy. Australian companies have played a critical role in this disruptive growth as it is home to world leaders in innovation across a number of sectors – mining, banking, agriculture, financial services, and telecommunications.

Whilst the government can’t create innovate ideas, it can create an environment that allows them to foster and grow. For instance, creating a focus on local research and development (R&D) by implementing the R&D Tax incentive. The government’s innovation and science agenda has laid out a sound set of policy initiatives to address many of the impediments to innovation and scientific research in Australia. The R&D tax incentive is one of the most effective programs for creating an environment that encourages SME’s to take the financial risk of innovating their current business products and services.

Unfortunately, too many businesses in Australia simply aren’t aware of the significant cash flow benefit they could be adding to their business by making use of the tax incentive. In short, the incentive offers a company making below $20 million in revenues a 45 per cent benefit on any of its research and development spend.

If the company is operating at a loss, the 45 per cent benefit would come in cash. As a simple example, if the organisation had $200,000 of research and development expenditure and was in a loss situation there would be a $90,000 cash injection through the tax incentive.

On the other hand, if the company is turning a profit they would be entitled to an additional 15 per cent tax benefit on the research and development spend. Using the same example, on normal deductions of $200,000 the tax benefit would be $60,000, being 30 per cent of the deduction. With the tax benefit it would be $90,000, being 45 per cent of $200,000, giving an additional $30,000 in tax benefits

What is TaxTrex?

TaxTrex reduces the risk of an AusIndustry audit by providing tools to manage an R&D claim service in-house from initial assessment to the claim submission. Relevant information necessary for the R&D claim will be:

  • extracted,
  • time-stamped; and
  • securely stored.

The information gathered through the surveys will assist in substantiating the scientific process and purpose of conducted activities.

The reports generated from the surveys will be useful in defending a claim in the event of a review or audit.

For more information please Contact Us