In July 2020, The ATO released TD 2020/D1: Income tax: notional deductions for research and development activities subsidised by JobKeeper payments.
The ruling outlined the need for companies that are subject to both the R&D Tax Incentive and JobKeeper to adjust R&D claims on the basis that:
Since this draft ruling was released, Swanson Reed had been advising companies to adjust their R&D claims accordingly to exclude from R&D expenditure salaries reimbursed by JobKeeper.
On 22 December 2021, the ATO released finalised TD 2021/9 – Income tax: JobKeeper payments received or expected as a result of research and development expenditure.
Key Extracts from the finalised ruling include the following:
R&D entities who received JobKeeper should ensure they are aware of the finalised ruling and include the relevant adjustments.