Changes to AusIndustry R&D Application introduced October 2013
30 April 2015 is the R&D Tax Incentive lodgement deadline for companies wishing to claim eligible R&D conducted during the year ended 30 June 2014.
Companies who submitted their 2013 claims near last year’s deadline should be aware of changes to the registration application introduced in October 2013. This includes the additional requirement for:
Whilst the changes will render the need for additional information to ensure registration compliance is sufficed, the extra requirements will provide companies with a chance to carefully consider their R&D and whether activities may withstand a subsequent review of eligibility.
The additional requirements also mean companies should be assessing their 2013 R&D activities now to ensure applications are processed to an adequate standard <Learn More>
Use of Feedstock Worksheet within Company Income Tax Returns
A feedstock adjustment must be included in a company’s assessable income when Tax Offsets for R&D Expenditure are obtained on products which are marketable or applied to a company’s own use. The addition to assessable income for feedstock adjustments was a key new requirement of the R&D Tax Incentive Regime.
Recent updates to the company income tax return will require companies to complete a feedstock worksheet outlining the basis of any relevant feedstock adjustment. Whilst this represents additional compliance, we strongly encourage careful consideration of feedstock worksheets <Learn More>
Legislative Update – Quarterly Credits for Small Companies
Tax Laws Amendment (2013 Measures No.4) Bill 2013 proposed to provide quarterly payments to companies who received net refunds from their annual R&D claim. This legislation has stalled and will not likely be passed as law.
Legislative Update – Exclusion for Very Large Companies ($20 Billion Turnover)
The proposed section 355-103 ITAA1997 will if legislated, prohibit access to the R&D Tax Incentive for very large companies with assessable income in excess of $20 Billion.
Last year, this proposed amendment was referred to the Senate Economics Legislation Committee to assess the consultation process undergone by the previous government. Last month, the Senate heard from those with differing viewpoints on the issue and is now due to release its final report and recommendation between the 17th-22nd of March.
Although the proposed section is yet to be enacted as law, the general consensus is that it will indeed be passed by 1 July 2014 <Learn More>
Swanson Reed is proud to be part of the Senate Inquiry. Click here to view our submission.
Update – May 2014 Budget
The May 2014 budget will be the first handed down by the new coalition government and will likely incorporate cuts to many government programs. Whilst details are limited at this point, there are not expected to be any further changes relevant to R&D Tax Incentive program.
About Swanson Reed:
Swanson Reed is pleased to offer part II in the ultra successful workshop series “Accessing the R&D tax Incentive Safely”: Exploring AusIndustry Audit and AAT Substantiation War Stories. <Learn More>
|QLD – Brisbane||25th March|
|QLD – Mackay||23rd July|
|QLD – Townsville||25th July|
|NSW – Sydney||21st March|
|VIC – Melbourne||2nd April|
|SA – Adelaide||21st October|
|WA – Perth||1st April|
Are you Eligible?:
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