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R&D Tax Incentive safe for now
The government’s $1.1 Billion innovation plan will not involve any cuts to the R&D Tax Incentive. Innovation minister Christopher Pyne said, “no plans at this stage to find savings in the R&D tax incentive.”
However, future changes may be made depending on the outcomes of reviews of the R&D Tax incentive. There are currently two reviews underway, which include, the general tax review by the Tax White Paper, titled RE:Think, and an independant review being conducted by the Centre for International Economics. It is currently unknown when these will be finalised.
Prime Minister Malcolm Turnbull said, “it’s a complex area … Innovation and Science Australia will be reviewing it carefully with the industry. It has been refined over time, and it will be refined in the future”.The task at hand is to identify opportunities to improve the programs effectiveness on encouraging R&D spend for both big and small businesses.
The innovation statement seeks to create an Australian-based culture of innovation. Specifically, to surpass the mining boom with an “idea’s boom”. the Innovation Statement included a proposal to form a new independent body, Innovation and Science Australia (ISA), which would replace and essentially redefine the role of Innovation Australia. This is expected to be effective on the 1 July 2016 and it will be the new body counselling the Government on innovation policy in Australia. Thus, with this in mind, next year there may be proposed changes to the R&D Tax Incentive under this body.
The Innovation Statement has been widely welcomed and due to there being no changes outlined, businesses are still encouraged to conduct R&D business activities as normal. For more information about the Innovation Statement click here.
Think you may be eligible for the R&D Tax Incentive? Let TaxTrex help prepare and substantiate your claim!
How does TaxTrex work?
TaxTrex 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.
Track your projects in real time
TaxTrex’s three annual surveys provide an up to date and verifiable overview of your research progress. Each survey is time-samped digitally, which will help you defend your claim in the event of an audit. Learn more
Risk assessment
Our innovative risk assessment algorithm will identify any potential issues with your R&D project. If a compliance risk is identified, our team will work with you to ensure your claim accurately meets AusIndustry’s requirements.Learn more
Real-time reports
TaxTrex surveys are digitally time-stamped to ensure the scientific process is recorded as it occurs. This unique feature acts as a proof of your research progress, and will help defend your claim in an audit.Learn more
Document storage
TaxTrex’s unique document storage facility provides a central location where all your R&D documents can be saved. If you are audited, you can simply access this facility and download all your supporting documents.Learn more