July 20th, 2022
Companies should always seek to lodge R&D applications on time to avoid the need to pursue extensions.
Significant changes have been introduced over recent years limiting the time period available to companies applying for extensions of time to submit R&D applications.
A limit on extensions of time to submit an R&D application after a statutory deadline came into effect on 1 January 2021. From 1 April 2022, this cap was amended from 3 months to 92 days. This cap applies unless the extension is granted to allow an applicant to wait for the outcome of a separate pending decision (for example if an existing activity review on a prior claim is ongoing).
When requesting an extension of 14 days or more before an original deadline, or an extension of any period of time after a deadline, a company must lodge an extension via the new portal, and advise AusIndustry:
- the reasons they could not submit an application by the original deadline;
- the reasons for any delay in requesting an extension;
- evidence to support the provided reasons.
The reasons for the extension request must not be:
- The company’s fault or the fault of anyone acting on their behalf
- Within the company’s control or within the control of anyone acting on their behalf.
The longer the extension, the stronger an explanation and evidence needs to be.
As a practical example of the impact of the new time limits on extensions:
- The original deadline for R&D Applications for the YE 30 June 2021 was around 30 April 2022;
- Extensions of time are limited to a maximum of 92 days after the statutory deadline for application lodgement;
- Therefore the absolute last date that a company can submit an application (assuming that an extension is evidenced and approved) for the period ending 30 June 2021 is 3 AUGUST 2022
The relevant details are avaliable in Part 3 of the Industry Research and Development Decision-making Principles 2022.
Check out the Swanson Reed website for further information regarding applicable R&D AusIndustry regulations, or don’t hesitate to contact us.