TaxTrex
TaxTrex

Is your startup eligible for the R&D Tax Incentive?

The R&D Tax Incentive is the Australian Government’s key program to support R&D and innovation. It provides companies with up to 45 cents back for every eligible dollar, even in many cases where startup companies are not yet paying tax.

You don’t need to be wearing white lab coats to be eligible for the R&D Tax Incentive. In fact, R&D is undertaken every day in Australia across many different industries such as manufacturing, engineering, agriculture, health, food, software, retail and many more.

R&D projects usually comprise of a set of activities with start and finish dates, undertaken to generate a specific piece of new knowledge. Eligibility is determined on an activity basis, not on a project basis. These activities fall into two classes: Core R&D activities and supporting R&D activities. Both of these types of activities can be claimed.

The claim process works as follows:

  • Registering: Register R&D activities with AusIndustry (on behalf of Innovation Australia) within 10 months after year end; and
  • Claiming: Claim the tax offset in the annual income tax return (which would include the ATO’s R&D Tax Incentive Schedule detailing the R&D expenditure incurred).

Furthermore, the R&D program has five steps:

  • Assess if you have an eligible entity (check your eligibility here)
  • Conduct eligible R&D activities
  • Register with Ausindustry
  • Ensure your books are in order
  • Lodge your company tax return with the ATO

Need help with a claim?

82% of accountants think that preparing R&D claims without specialist help is too risky. TaxTrex allows you to prepare R&D claims with little or no risk.

TaxTrex provides tools to manage an R&D claim service in-house from initial assessment to the claim submission.

How does TaxTrex work?

TaxTrex is based on academic research conducted by Swanson Reed and works by issuing three surveys at regular intervals during the year.

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 that is reviewed or audited.