TaxTrex
TaxTrex

Will R&D drive productivity in 2016?

Research and Development spend has emerged as a reliable indicator of an economy’s innovation capability. Moreover, tax breaks such as the R&D Tax Incentive program are key to this spend. It allows large research orientated organisations, startups, and SME’s leverage their R&D capabilities to create new and innovative products and services.

In 2014-15 the Australian government provided $9.2 billion in support of science, research and innovation. Most of which is contributed towards the R&D Tax incentive. Economic research has established that R&D is one of the key drivers of long run productivity as it seeds innovation. Increases in R&D will lead to new technologies and increases in knowledge capital for the business conducting R&D and for the wider economy.

Industries associated with rapid growth is generally due to rapid technological improvements developed from increased R&D expenditures leading to both evolutionary and revolutionary innovative products and/or services. Innovation contributes by lowering cost of production or by improving the quality of goods and/or services. Additionally, innovation can lead to improvements in areas such as management and marketing. The application of innovative management techniques will establish a modern, collaborative and flexible approaches to work.

Innovation develops skills and knowledge, helps create new business opportunities, and creates skilled jobs for now and into the future. There is no doubt that Australia can improve on productivity through the application of scientific and/or technological breakthroughs. The agriculture sector is a prime example of an industry that uses extensive R&D to remain internationally competitive to keep up with the demand of the booming world economy. It is through R&D that farmers have historically overcome economic downturn and climate changes such as drought to drive productivity growth.

Companies don’t need to invest billions into high tech labs or have extensive testing facilities with wind tunnels and crash dummies to be eligible for the R&D Tax Incentive. In fact, some of the worlds most used innovations began with individuals tinkering with their unique ideas or SME’s simply trying something new. With innovation high on the government’s agenda now is the time to invest in R&D.

For many small businesses the idea of applying for a grant is appealing, however most find the application process for the R&D Tax Incentive complex and time-consuming.

Need help with a claim?

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.