Application Form for R&D Tax Incentive 2012 is now available

June 27th, 2012

From 1 July 2012 companies can begin to claim under the new R&D Tax Incentive.  The R&D Tax Application Form is now available on the AusIndustry website.

The new legislation contains some significant changes, which any company intending to claim R&D for the 2011 tax year should be aware of.  The new legislation provides the following incentives for companies:

  • 45% refundable tax credit where turnover is below $20m (150% deduction)
  • 40% non refundable tax credit where turnover is above $20m (133% deduction)

There is also a change to the definition of what is ‘core’:

Experimental activity that is generating new knowledge or generating new knowledge by creating new or improved:

  • Materials
  • Products
  • Processes
  • Devices
  • Services

“Systematic progression” based on science principles from hypothesis to experiment, observation and evaluation and lead to logical conclusions.

The outcome must be unable to be determined in advanced based on current knowledge, information or experience.

Things you need to know NOW:

If you are considering claiming under the new legislation, there are some important things you need to consider before 1 July 2012:

  • Payments to Associates – must be made during the year you are claiming for
  • Advance Findings – can be sought in the current income year for which an application is made, and the subsequent 2 income years. The decision is binding so long as the activities are carried out consistently with the findings.
  • Overseas Findings – must be registered in Advanced Findings in the first year activities are conducted.  The application cannot include activities conducted in previous income years. The maximum claim amount must be less than 50% of total R&D costs.

Swanson Reed is a group of highly accomplished RD Tax advisors, contact us to find out how we you can maximise your R&D Tax claim.