Animal Nutrition Organization Australia (ANOA) is dedicated to providing natural, non-antibiotic solutions to varied animal health and nutrition issues.
In 2012, ANOA decided to take part in an eight-year study to ensure that Australian beef was a high quality meat that was environmentally responsible, safe and nutritious. ANOA created a hypothesis for this program of investigation which stated,
“With knowledge of the intrinsic factors regulating the metabolism of the gastrointestinal tract, we can identify mechanisms for improving feed intake, enhancing feed efficiency and reducing the reliance on antibiotic use.”
The first research phase of ANOA’s R&D study involved identifying the intrinsic factors that regulated feed intake in the cow and developing a suitable, low temperature, high moisture pellet that facilitated the ingestion of the feed by cows.
To achieve its technical objectives and overcome the related technical risks, the ANOA generated new knowledge at the conclusion of each experimental stage and built upon that knowledge at every stage of the remaining project.
After undergoing its first year of experimentation, ANOA claimed four R&D activities for the 2013 fiscal year; two core and two supporting.
The main objective for this core activity was to determine whether a model for identifying cow preferences based on the chemosensory properties of an ingredient could be designed and developed. This experiment included:
Trials and analysis of data to achieve results that can be reproduced to a satisfactory standard (development and testing of feed intake and efficiency enhancers).
The hypothesis for this ANOA core activity stated that with improved knowledge of the intrinsic factors regulating the metabolism of the gastrointestinal tract, it was possible to identify mechanisms for improving feed intake, enhancing feed efficiency and reducing the reliance on antibiotic use.
Details of this experiment included development of the enhancers based on information gained through the model and testing of the enhancers to ensure efficiency, accuracy and safety.
If the outcome of an activity can be obtained without a hypothesis, then the activity will not be considered R&D.
ANOA’s background research included literature search and review, consultations with industry professionals and potential customers, and preliminary equipment and resources review.
The activities conducted in the background research were necessary to support the core activities because they assisted in identifying the key elements of the research project.
Ongoing analysis of customer or user feedback to improve the prototype design (feedback R&D of the feed intake and efficiency enhancers).
This supporting R&D activity included:
These activities were directly related to ANOA’s core R&D activities because the feedback was necessary to evaluate the performance capabilities of the new design in the field and to improve any flaws in the design.
Activities that do not form part of the core experimental activities may still be eligible as supporting R&D activities. Supporting R&D activities are directly related to an eligible core R&D activity. They must have been performed for the primary purpose of supporting a qualified R&D activity.
To meet the R&D Tax Incentive requirements, ANOA had to save documents that outlined what it did in its core R&D activities, including experimental activities and documents to prove that the work took place in a systematic manner.
ANOA saved the following documentation:
By having these records on file, ANOA confirmed that it was ‘compliance ready’ — meaning if it was selected for an ATO audit, it could present documentation to show the progression of its R&D activity.