Deadline extension: Changes to the R&D Tax Incentive
In light of recent bushfires and the current coronavirus pandemic, the ATO and the Department of Industry, Innovation & Science have made changes to the R&D Tax Incentive offering an extended deadline, allowing applications for the 1 July 2018 to 30 June 2019 income year to be submitted until 30 September 2020. Eligible businesses are not required to apply for an extension during this period.
For businesses who may still struggle to lodge an application by this date, there is also the option to request a further extension with the department.
Benefits of the R&D Tax Incentive in the current climate
Innovation encourages competitiveness in the market and significantly boosts our economy. In times like these, we need to explore every opportunity possible to improve our economy.
The R&D Tax Incentive reinforces the innovation policy in Australia and offers companies a refundable tax offset or benefit of up to 43.5% on eligible R&D expenditure. This 43.5% benefit may be a ‘cash payment’ depending on your tax position, which could offer significant cash flow assistance to your business.
Whilst the Federal Government’s Coronavirus stimulus packages are a good start, the RDTI is a continued incentive that aims to support innovative companies in the research and development phase if you are conducting eligible activities.
This incentive will help your business maintain employment levels, reduce your tax payable and progress with R&D and innovation despite economic uncertainty brought about by the COVID-19 pandemic.
Pursuing business potential with the R&D Tax Incentive
Now is the time to seize opportunities and be prepared as the global economy’s downturn bounces back.
If you have already lodged your FY2019 income tax return, you could still be eligible to claim the incentive. With the R&D deadline now extended to September 30th, we are pleased to offer a no-obligation assessment of activities and expenditure.
This assessment will determine your eligibility to claim the R&D Tax Incentive for FY2019 and FY2020.
The information contained in this blog is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. In all cases, you should consult with a professional advisor familiar with your factual situation for advice concerning specific matters before making any decisions. By reading this blog, you confirm your understanding of this disclaimer.