Generated by All in One SEO v4.9.5.1, this is an llms.txt file, used by LLMs to index the site. # Swanson Reed Specialist R&D Tax Consultants ## Sitemaps - [XML Sitemap](https://www.swansonreed.com.au/sitemap.xml): Contains all public & indexable URLs for this website. ## Posts - [Recent News](https://www.swansonreed.com.au/news/) - Get the latest R&D tax incentive news and updates. Stay informed on industry trends, legislative changes, and innovation funding. - [Digital Games Tax Offset - Legislation Passed including Clarification of Interaction with R&D Tax Incentive](https://www.swansonreed.com.au/digital-games-tax-offset-legislation-passed-including-clarification-of-interaction-with-rd-tax-incentive/) - In June 2023, Treasury Laws Amendment (2022 Measures No 4) Bill 2022 was passed to enact the digital games tax offset (DGTO). The DGTO initiative was proposed by the former government as a refundable offset for Digital Games, to strengthen the digital games industry and develop local capability. The Digital Games Tax offset only applies - [FY23 R&D Registrations Now Open](https://www.swansonreed.com.au/fy23-rd-registrations-now-open/) - Companies are now able to register R&D Activities conducted during the year ended 30 June 2023 (FY23) with AusIndustry. For the FY23 period, the application process is again administered through the new online customer portal which was introduced for the prior FY21 period. There were substantial changes made to the R&D Activity technical description requirements - [New Draft Tax Determination on Aggregated Turnover and Connected Entities - Commissioner's Discretion That an Entity does not 'Control' Another Entity](https://www.swansonreed.com.au/new-draft-tax-determination-on-aggregated-turnover-and-connected-entities-commissioners-discretion-that-an-entity-does-not-control-another-entity/) - On 28 June 2023 the ATO has published Draft Tax Determination TD 2023/D2 on aggregated turnover and connected entities - Commissioner's discretion that an entity does not 'control' another entity. Under the R&D Tax Incentive a company’s rate of R&D tax offset and whether it is refundable or not depends primarily on the R&D entity's - [ASX listed healthcare company provides update on R&D Tax Dispute](https://www.swansonreed.com.au/asx-listed-healthcare-company-provides-update-on-rd-tax-dispute/) - In May 2025, Careteq Limited (ASX: CTQ) a clinical healthtech company specialising in medication management and clinical governance solutions announced details of a disputed R&D claim. The May 2025 announcement noted that Careteq: 'advises that it has been issued with amended assessments from the Australian Taxation Office (ATO) in relation to claims made under the Australian government’s - [Updated ATO guidance on R&D activities conducted for an associated foreign corporation](https://www.swansonreed.com.au/updated-ato-guidance-on-rd-activities-conducted-for-an-associated-foreign-corporation/) - The ATO has updated guidance on 13 July 2026 around the provisions for R&D activities conducted for an associated foreign corporation. To be eligible to claim the R&D tax incentive for R&D activities conducted for one or more associated foreign corporations, the following conditions must apply: Each foreign corporation must be a resident of a foreign country that has a double - [Recent media coverage over concerns for proposed 10 year limit to Refundable R&D Tax Offset Eligibility](https://www.swansonreed.com.au/concerns-for-proposed-10-year-limit-to-refundable-rd-tax-offset-eligibility/) - The Federal Budget handed down on 12 May 2026, The Government proposed major structural changes to the R&D Tax Incentive (RDTI). These changes are proposed to commence on 1 July 2028. Proposed reforms include: Increasing the offset for experimental ‘core’ R&D by around 25 to 50 per cent and removing eligibility for expenditure that only supports - [Law now passed to exclude tobacco and gambling activities from eligibility under R&D Tax Incentive](https://www.swansonreed.com.au/law-now-passed-to-exclude-tobacco-and-gambling-activities-from-eligibility-under-rd-tax-incentive/) - The December 2024 Mid‑Year Economic and Fiscal Outlook (MYEFO) was released by the Government on 18 December 2024 and announced that The Government will exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility for income years starting on or after 1 July 2025. This proposal can probably be linked to the transparency reporting - [FY26 R&D Activity Registrations Now Open](https://www.swansonreed.com.au/fy26-rd-activity-registrations-now-open/) - Companies are now able to register R&D Activities conducted during the year ended 30 June 2026 (FY26) with The Department of Industry, Science and Reources. There were significant changes made to the R&D application form in August 2025 (for FY25 claims) however it is expected that there are no major changes for the FY26 R&D Application. We understand - [Representatives from Australia’s biotech and health tech sector express concerns on proposed changes to Refundable R&D Tax Offset](https://www.swansonreed.com.au/representatives-express-concerns-on-proposed-changes-to-refundable-rd-tax-offset/) - In the Federal Budget handed down on 12 May 2026, The Government proposed major structural changes to the R&D Tax Incentive (RDTI). These changes are proposed to commence on 1 July 2028. Proposed reforms include: Increasing the offset for experimental ‘core’ R&D by around 25 to 50 per cent and removing eligibility for expenditure that only - [New DISR Guidance on Artificial intelligence-related R&D activities](https://www.swansonreed.com.au/new-disr-guidance-on-artificial-intelligence-related-rd-activities/) - In recent years, claims related to AI activities have increased, and as expected, DISR has published new specific guidance for the sector. The new guidance released in June 2026 complements the Hypothetical Machine Learning case study issued in 2024. Some key extracts from the June 2026 guidance includes: Using an AI model or technique that is - [New Federal court matter (May 2026) finds the occurrence of R&D Tax evasion schemes](https://www.swansonreed.com.au/federal-court-matter-may-2026-finds-occurrence-rd-tax-evasion-schemes/) - A federal court case, with a judgement dated 28 May 2026 has declared that a respondent contravened s 290-50(1) of the TAA regarding several taxpayer schemes involving the R&D Tax Incentive. The R&D Tax Incentive has been a focus of the TPB and ATO in recent years, with several published matters involving the promotion and misuse of the - [Deadline approaching for lodgement of Overseas Findings for R&D Activity first conducted in FY26](https://www.swansonreed.com.au/deadline-approaching-for-lodgement-of-overseas-findings-for-rd-activity-fy26/) - Companies seeking to claim expenditure for overseas activity incurred by an Australian company under the R&D Tax Incentive must apply separately to claim these costs by first lodging an Overseas Finding Application with AusIndustry. In addition to general eligibility criteria, there are specific and extensive rules to determine whether expenditure on overseas activities is eligible under the - [Media coverage of business response to proposed R&D Tax Changes announced in May Budget](https://www.swansonreed.com.au/media-coverage-business-response-proposed-rd-tax-changes-may-budget/) - In the Federal Budget handed down on 12 May 2026, The Government proposed major structural changes to the R&D Tax Incentive (RDTI). These changes are proposed to commence on 1 July 2028. Proposed reforms include: Increasing the offset for experimental ‘core’ R&D by around 25 to 50 per cent and removing eligibility for expenditure that only - [Significant concerns over announcement in May 2026 to limit Refundable R&D Tax Offset to firms operating less than 10 years](https://www.swansonreed.com.au/significant-concerns-over-announcement-in-may-2026-to-limit-refundable-rd-tax-offset/) - Swanson Reed's initial analysis of the R&D announcements in May 2026 are summarised here. After we considered these proposed changes in greater detail, we are particularly alarmed about a proposed change announced in the Budget to the R&D Tax Incentive that we feel has not been communicated well nor understood by those whom it may impact... - [May 2026 Federal Budget Update: Significant future changes proposed to R&D Tax Incentive](https://www.swansonreed.com.au/may-2026-federal-budget-update-significant-future-changes-proposed-to-rd-tax-incentive/) - Leading up to the May 2026 Federal Budget there were reports of modest changes likely to be made to the R&D Tax Incentive (mainly around increases to expenditure thresholds) however there was not expected to be any major reforms announced given that: The Government had only recently (in March 2026) received the final report from The Strategic - [Reports that R&D Tax Changes to be announced in May 2026 Federal Budget](https://www.swansonreed.com.au/rd-tax-changes-in-may-2026-federal-budget/) - The 2026–27 Australian Federal Budget will be delivered by Treasurer Jim Chalmers on Tuesday, 12 May 2026. The AFR has reported today that: Treasurer Jim Chalmers is expected to raise the current $150 million cap on R&D expenses that can be claimed, in a move that will immediately help tech giant Atlassian and hearing - [Statutory Deadline for FY25 R&D Claims is THIS week - 30 April 2026](https://www.swansonreed.com.au/deadline-fy25-rd-claims-this-week-30-april-2026/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2025 (companies that have a Standard YE for tax) who are yet to do so should note that the Registration Deadline is 10 Months after YE. This year the deadline is THURSDAY the 30th of APRIL 2026. Extensions of time may be available - [Statutory Deadline for FY25 R&D Claims is THIS month](https://www.swansonreed.com.au/statutory-deadline-for-fy25-rd-claims-is-this-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2025 (companies that have a Standard YE for tax) who are yet to do so should note that the Registration Deadline is 10 Months after YE. This year the deadline is THURSDAY the 30th of APRIL 2026. Extensions of time may be available - [Innovation in Australia: Collaborate or Cease?](https://www.swansonreed.com.au/innovation-in-australia-collaborate-or-cease/) - “Innovate or Die” - the saying has become somewhat of a proverb of late in Australia as Turnbull pushes forward his Innovation Agenda in 2016. However, should the motto be “collaborate or cease” instead? To elaborate, last week an Issues Paper (PDF 611KB) was released reviewing the Australian R&D Tax Incentive. The review confirms that Australian - [Exclusion of gambling and tobacco activities under the R&D Tax Incentive - March 2026](https://www.swansonreed.com.au/exclusion-of-gambling-and-tobacco-activities-march-2026/) - Watch this video for an insightful summary of the latest R&D Tax Incentive Industry Update, produced in March 2026: Exclusion of gambling and tobacco activities under the R&D Tax Incentive. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the - [Swanson Reed’s Online R&D Tax Workshop – Updated March 2026](https://www.swansonreed.com.au/swanson-reeds-online-rd-tax-workshop-march-2026/) - Swanson Reed has recently compiled a series of training videos providing updated material on the R&D Tax Incentive. Benefits available to companies under the R&D Tax Incentive are substantial; however, companies must suitably self-assess and record their activities to meet specific requirements on eligibility and documentation. The videos in our series compiled in March 2026 include - [A warning for companies using AI in R&D Tax Incentive Applications - March 2026](https://www.swansonreed.com.au/warning-for-companies-using-ai-in-rd-tax-incentive-applications-march-2026/) - Watch this video for an insightful summary of the latest R&D Tax Incentive Industry Update, produced in March 2026: A warning for companies using AI in R&D Tax Incentive Applications Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the - [R&D Tax policy discussion from the strategic examination - March 2026](https://www.swansonreed.com.au/rd-tax-policy-discussion-from-the-strategic-examination-march-2026/) - Watch this video for an insightful summary of the latest R&D Tax Incentive Industry Update, produced in March 2026: R&D Tax policy discussion from the strategic examination. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive - [Government Releases Strategic Examination of R&D final report – Comments on R&D Tax Incentive Proposals](https://www.swansonreed.com.au/government-releases-strategic-examination-of-rd-final-report-comments-on-rd-tax-incentive-proposals/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s Research and Development (R&D) system to align it with national priorities and to improve outcomes. In late 2024, The Government announced specific details to launch the review. It was noted that the review will assess how to maximise - [Notes from Productivity Commission update in February 2026](https://www.swansonreed.com.au/notes-from-productivity-commission-update-in-february-2026/) - The Productivity Commission is the Australian Government’s independent research and advisory body on economic policy and productivity. Its role is to analyse policy issues and recommend reforms that improve Australia’s productivity, living standards, and economic performance. In February 2026 it released a document titled "Annual productivity bulletin 2026" which noted that Australian market sector R&D - [Statutory Registration Deadline for FY25 R&D Claims is next month](https://www.swansonreed.com.au/statutory-registration-deadline-for-fy25-rd-claims-next-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2025 (companies that have a Standard YE for tax) who are yet to do so should note that the Registration Deadline is 10 Months after YE, and 30 APRIL 2026. The blanket and automatic extensions granted in previous years do NOT apply any longer or for - [Process for Setting Up MyGovID and Authorisation for New AusIndustry R&D Tax Portal](https://www.swansonreed.com.au/process-for-setting-up-mygovid-and-authorisation-for-new-ausindustry-rd-tax-portal/) - AusIndustry have changed their reporting processes whereby they are mandating the use of a new online form for FY21 onwards. As part of this, directors of companies must set up a myGovID account (or use an existing myGovID), then link their personal myGovID to their R&D-registering company, then link to the R&D tax advisor preparing the - [Large ASX listed Agribusiness provides update on R&D Tax Dispute](https://www.swansonreed.com.au/large-asx-listed-agribusiness-provides-update-on-rd-tax-dispute/) - In its interim financial report released in February 2026, Inghams Group Limited (ASX: ING) provided an update on an R&D Tax matter. This matter was previously reported in the media last year. The February 2026 ASX release notes: Inghams has been undergoing an audit by the Australian Taxation Office ('ATO'). The ATO has asserted that - [Comments on February 2026 Senate Economics Legislation Committee discussion on R&D Tax Incentive](https://www.swansonreed.com.au/feb-2026-rd-tax-discussion-senate-economics-legislation-committee/) - As reported in the media this week, the Senate Economics Legislation Committee discussed the administration of the R&D Tax Incentive. Swanson Reed has reviewed the discussion in detail. It involved interactions between three people, whose comments are summarised and paraphrased below: Greens Senator Barbara Pocock: Had queries around how many reviews are conducted each year; Queried whether staff - [Consultation on exposure draft for exclusion of gambling and tobacco companies under the R&D Tax Incentive](https://www.swansonreed.com.au/consultation-on-exposure-draft-for-exclusion-of-gambling-and-tobacco-companies-under-the-rd-tax-incentive/) - The December 2024 Mid‑Year Economic and Fiscal Outlook (MYEFO) was released by the Government on 18 December 2024 and announced that The Government will exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility for income years starting on or after 1 July 2025. The Government then released an exposure draft in December 2025, - [DISR update notes applications lodged well before deadline subject to faster processing (take action now for FY25 deadline)](https://www.swansonreed.com.au/disr-update-notes-applications-lodged-well-before-deadline-subject-to-faster-processing-take-action-now-for-fy25-deadline/) - The deadline for FY25 R&D Claims (for the YE 30 June 2025) is fast approaching. ⠀ Similar to last year, in an update published in late January, The Department of Industry, Science and Resources (DISR) have confirmed that leaving lodgement until close to the deadline will understandably lead to longer processing times for R&D Registrations: - [Significant Refundable R&D Offsets receipts reported to the ASX in recent months to January 2026](https://www.swansonreed.com.au/significant-refundable-rd-offsets-receipts-reported-to-asx/) - Over recent months, a number of companies have reported to the ASX receipt of substantial Refundable R&D Tax Offsets. Notable receipts include: Recce Pharmaceuticals (ASX: RCE) received $5.34 M related to its anti-infective platform; Race Oncology (ASX:RAC) received $2.8M related to its cancer treatments; Ecograf (ASX: EGR) received $1.7M related to its EcoGraf HFfree proprietary - [R&D Tax Incentive - Potential Key Events in 2026](https://www.swansonreed.com.au/rd-tax-incentive-potential-key-events-in-2026/) - Some key events impacting Australia's R&D Tax Incentive over the past 12 months during calendar year 2025 included: The release of proposed legislation to exclude gambling and tobacco companies from eligibility under the R&D Tax Incentive; The strategic examination and review of Australia’s Research and Development (R&D) system progressed and released a discussion paper on R&D Incentives that contained some significant potential - [TPB announce 2026 compliance priorities include tax practitioners who promote the abuse of R&D concessions](https://www.swansonreed.com.au/tpb-announce-2026-compliance-priorities/) - The Tax Practitioners Board (TPB) is a national body responsible for the registration and regulation of tax agents and BAS agents (collectively referred to as 'tax practitioners'). The TPB is also responsible for ensuring compliance with the Tax Agent Services Act 2009 (TASA), including the Code of Professional Conduct (Code). In December 2025, The TPB has announced its - [Exposure draft released for exclusion of gambling and tobacco companies under the R&D Tax Incentive](https://www.swansonreed.com.au/exposure-draft-released-for-exclusion-of-gambling-and-tobacco-companies-under-the-rd-tax-incentive/) - The December 2024 Mid‑Year Economic and Fiscal Outlook (MYEFO) was released by the Government on 18 December 2024 and announced that The Government will exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility for income years starting on or after 1 July 2025. The Government has now released an exposure draft for Treasury Laws - [2025 Annual Report for IISA: Update on R&D Tax Legal matters and litigation](https://www.swansonreed.com.au/2025-annual-report-for-iisa-update-on-rd-tax-legal-matters-and-litigation/) - Industry Innovation and Science Australia (IISA) is the federal government department responsible for determining whether companies’ activities meet the legislative criteria eligible under the R&D Tax Incentive. The 2025 Annual Report for IISA was recently released, and a section of the report provides an update on Legal matters and litigation relevant to the department. Litigation on R&D - [Leading SaaS provider TechnologyOne establishes Team Australia Fund](https://www.swansonreed.com.au/technologyone-establishes-team-australia-fund/) - The Brisbane-based company TechnologyOne offers SaaS+ (Solution as a Service) products. TechnologyOne has become a leader in the Australian industry, and its shares have performed well over the past 5 years. TechnologyOne has consistently emphasised its R&D investment proudly within its ASX filings and according to Chat GPT, has made the following R&D investment - [November 2025 Industry Minister Update on Strategic Examination and Review of Australia’s R&D System](https://www.swansonreed.com.au/industry-minister-update-on-strategic-examination-and-review-of-australias-rd-system/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s Research and Development (R&D) system to align it with national priorities and to improve outcomes. In late 2024, then Industry Minister Ed Husic announced specific details to launch the review. It was noted that the review will assess - [R&D Tax Mentions in Commissioner of Taxation Annual Report 2024–25](https://www.swansonreed.com.au/rd-tax-mentions-in-commissioner-of-taxation-annual-report-2024-25/) - The R&D Tax Incentive (R&DTI) is co-administered by two government agencies: 1: The Department of Industry, Science and Resources on behalf of Industry Innovation and Science Australia (IISA): The department registers companies for the R&DTI program and makes findings on the eligibility of R&D activities. and 2: The Australian Taxation Office (ATO): The ATO is responsible for administering R&DTI - [DISR and ATO information sessions in November 2025](https://www.swansonreed.com.au/disr-and-ato-information-sessions-in-november-2025/) - DISR have announced they will be conducting a R&D Tax Incentive Registration webinar on THURSDAY 20 NOVEMBER 2025. This information session is scheduled to cover: The application process; How self-assessment works; Eligibility requirements of activities and expenditure; Record-keeping to substantiate claims. Representatives from AusIndustry and ATO are noted as being in attendance. A registration link is here. Please - [R&D Tax Registrations - Upcoming Deadlines for Financial Year: 2024-25](https://www.swansonreed.com.au/rd-tax-registrations-upcoming-deadlines-for-financial-year-2024-25/) - Companies seeking to register R&D Activities conducted during the Year Ended 31 December 2024 (companies that have a December Year End for tax) who are yet to do so should note that the Registration Deadline is the end of October 2025. The extensions granted during COVID no longer apply, and the statutory deadlines revert to normal (10 - [ASX listed healthcare company provides update on R&D Tax Dispute](https://www.swansonreed.com.au/12022-2/) - In May 2025, Careteq Limited (ASX: CTQ) a clinical healthtech company specialising in medication management and clinical governance solutions announced details of a disputed R&D claim.The May 2025 announcement noted that Careteq: 'advises that it has been issued with amended assessments from the Australian Taxation Office (ATO) in relation to claims made under the Australian government’s Research - [ATO notes incorrect claims for the R&D tax incentive a focus in the construction, professional, scientific and technical services sector](https://www.swansonreed.com.au/incorrect-claims-rd-tax-incentive-a-focus-in-the-construction-professional-scientific-and-technical-services-sector/) - In an ATO release on 1 October 2025 titled 'Tax risks: property, construction and professional services' the ATO have noted that they will be focusing on R&D Tax Compliance. The document notes: 'We continue to see recurring issues in specific industries. We’re watching closely, conducting audits, and applying penalties and interest where needed. Our focus - [ART decision (Ultimate Vision Inventions Pty Ltd) finds R&D Activities not eligible.](https://www.swansonreed.com.au/art-decision-ultimate-vision-inventions-pty-ltd-finds-rd-activities-not-eligible/) - On the 18 September 2025, The Administrative Review Tribunal of Australia (ART) handed down its decision on Ultimate Vision Inventions Pty Ltd (UVI) v Industry Innovation and Science Australia (IISA). The matter may be familiar to those who follow R&D Tax dispute cases. The history is broadly: The matter was originally heard in the Administrative Appeal - [Strategic Examination of Research and Development: Swanson Reed comments on issues paper released on R&D Tax Incentives](https://www.swansonreed.com.au/strategic-examination-of-research-and-development/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s Research and Development (R&D) system to align it with national priorities and to improve outcomes. In late 2024, then Industry Minister Ed Husic announced specific details to launch the review. It was noted that the review will assess - [Observed increase in compliance activity for R&D Tax Incentive Claims](https://www.swansonreed.com.au/increase-in-compliance-activity-for-rd-tax-incentive-claims/) - As indicated by the additional funding for compliance activities announced in recent federal budgets (and as widely anticipated by those in the industry), we have recently observed a modest increase in compliance activity by regulators of the R&D Tax Incentive. The R&D Tax Incentive is dual administered by two government agencies: 1: The Department - [Update on an alleged ‘false mining operation’ involving large claims for GST and R&D Tax Offset reviews](https://www.swansonreed.com.au/update-on-an-alleged-false-mining-operation-involving-large-claims-for-gst-and-rd-tax-offset-reviews/) - In June 2025, The Australian posted an article about a private group alleged to have operated a ‘false mining operation’ that led to the generation of substantial refunds for GST and Refundable R&D Tax Offset credits. The Australian has this week has posted an update on proceedings that: Lawyers appearing for the ATO told the Federal Court - [Review R&D Case Law: substantiating an experiment - Compliance burden or insightful planning?](https://www.swansonreed.com.au/rd-tax-conundrum/) - This article on a commercial experiment provides an overview of the new requirements and examines the implications of the AAT decisions - [New software substantiates R&D claim in 90 mins - Video](https://www.swansonreed.com.au/new-software-substantiates-rd-claim-90-mins-video/) - TaxTrex is a cloud based software solution designed to help companies claim and substantiate the R&D Tax Incentive. - [DroneShield Ltd has used Australia's refundable R&D Tax Offset to become Australian Success Story](https://www.swansonreed.com.au/droneshield-australian-success-story/) - One of the best performing stocks on the ASX over the past few years has been Sydney based DroneShield Ltd which has seen the stock price rise from approximately $0.20 in September 2022 to $3.20 in September 2025. DroneShield Ltd has become a world-leading Australian developer of AI-powered counter-drone and electronic warfare solutions, and has - [Changes to R&D Tax Incentive Reporting Requirements in Updated Version of the Registration Form](https://www.swansonreed.com.au/changes-to-rd-tax-incentive-reporting-requirements-in-updated-version-of-the-registration-form/) - Change in the R&D Tax Incentive prompts companies seeking to register activites to complete an annual R&D Tax Incentive registration form via the R&D Tax Incentive customer portal. - [R&D Advisor Terminated by TPB for Making False Statements](https://www.swansonreed.com.au/rd-advisor-terminated-by-tpb-for-making-false-statements/) - The AFR and Tax Practitioners Board (TPB) has reported this week on the termination of tax agent registration of an advisor who formerly worked at a large firm. The advisor was found by the TPB to have breached multiple obligations under the Tax Agent Services Act 2009 and the Code of Professional Conduct. The TPB - [Media reports of large R&D Tax Dispute for ASX-listed agribusiness company](https://www.swansonreed.com.au/large-rd-tax-dispute-for-asx-listed-company/) - Media reports have emerged this week of a multi-million-dollar tax dispute for R&D Tax Incentive claims made by Inghams Group Limited. The ABC has reported that: The company's potential claim totals more than $50 million in taxpayer funds — which, in the context of $11.2 billion given out through the entire ATO program in 2021-22, - [R&D Tax Policy Discussions Leading into The Government’s Productivity Roundtable](https://www.swansonreed.com.au/rd-tax-policy-discussions-leading-into-the-governments-productivity-roundtable/) - Recent media coverage has suggested that businesses may be looking to discuss the R&D Tax Incentive at the August Roundtable - [DISR Announces Changes Streamlining R&D Activity Compliance Assessment Processes](https://www.swansonreed.com.au/disr-announces-changes-streamlining-rd-activity-compliance-assessment-processes/) - Moving forward DISR will primarily use a formal process referred to as an examination when engaging with companies to assess compliance of their R&D Activities. - [A warning for companies using AI to assist with drafting their R&D Tax Incentive Applications](https://www.swansonreed.com.au/warning-for-companies-using-ai-to-assist-rd-tax-incentive-applications/) - Businesses are increasingly leveraging Artificial Intelligence (AI) to streamline various tasks in a bid to achieve significant time savings and efficiency gains. However, when using AI to assist in the drafting of documents that present legal obligations (such as an R&D Application), care should be taken to ensure the information disclosed is correct. In recent - [FY25 R&D Activity Registrations Now Open and Upcoming Changes to the R&D Application Form](https://www.swansonreed.com.au/fy25-rd-activity-registrations-now-open-and-upcoming-changes-to-the-rd-application-form/) - Companies are now able to register R&D Activities conducted during the year ended 30 June 2025 (FY25) with AusIndustry. For the FY25 period, the application process is again administered through the online AusIndustry customer portal which was introduced for the prior FY21 period. AusIndustry has announced recently that there will be a new R&D Registration - [The Australian Industry Group Submission to Strategic Examination of the R&D System](https://www.swansonreed.com.au/the-australian-industry-group-submission-to-strategic-examination-of-the-rd-system/) - The Australian Industry Group (Ai Group®) is a peak national employer organisation representing traditional, innovative and emerging industry sectors. Ai Group is considered one of the leading business advocacy organisations in Australia. Ai Group has recently published their submission to The Australian Government’s strategic examination of the research and development (R&D) system. The Ai Group submission includes some notable - [Swanson Reed: Registered Tax Agent obligations and keeping clients informed](https://www.swansonreed.com.au/swanson-reed-registered-tax-agent-obligations-and-keeping-clients-informed/) - SR Tax Services Pty Ltd (trading as Swanson Reed) is a registered tax agent (Registration number 03718008). The Tax Practitioners Board (TPB) is the authority responsible for regulating Australia’s tax agents. The Government package of reforms to strengthen the integrity of Australia’s tax system has presented additional compliance and disclosure requirements for tax - [Robyn Denholm comments on R&D Spending Gap](https://www.swansonreed.com.au/robyn-denholm-comments-on-rd-spending-gap/) - In recent comments published by The Australian, Robyn Denholm, the Australian-based Tesla chair, has expressed concerns over slowing business investment in Australia, noting that “Australia is not living up to its full potential” in terms of investment and R&D She highlighted that Australia's combined government and business spending on R&D has fallen to 1.68% of - [Media reports of an alleged ‘false mining operation’ involving large claims for GST and R&D Tax Offset reviews](https://www.swansonreed.com.au/alleged-false-mining-operation-involving-large-claims-for-gst-and-rd-tax-offset-reviews/) - One of the major national newspapers has this week posted an article about a private group alleged to have operated a ‘false mining operation’ that led to the generation of substantial refunds for GST and Refundable R&D Tax Offset credits. Swanson Reed does not know specifics of this case other than what has been reported in the - [Deadline Approaching for Lodgement of Overseas Findings for R&D Activity First Conducted in FY25](https://www.swansonreed.com.au/deadline-approaching-for-lodgement-of-overseas-findings-for-rd-activity-first-conducted-in-fy25/) - Companies seeking to claim expenditure for overseas activity incurred by an Australian company under the R&D Tax Incentive must apply separately to claim these costs by first lodging an Overseas Finding Application with AusIndustry. In addition to general eligibility criteria, there are specific and extensive rules to determine whether expenditure on overseas activities is eligible under the - [AiGroup Warns of Manufacturing Recession as New Industry Minister Tim Ayres Commences](https://www.swansonreed.com.au/aigroup-warns-of-manufacturing-recession-as-new-industry-minister-tim-ayres-commences/) - A recent article on InnovationAus.com has covered Australian Industry Group’s (AiGroup) latest Key Industry Indicators numbers, showing that the economy slowed across 2024, and is now in the longest period of low growth since the 1991 recession. AiGroup’s Key Industry Indicators data reveals that the broader economy has seen its longest period of slow growth - [Ed Husic not to continue as Industry Minister](https://www.swansonreed.com.au/ed-husic-not-to-continue-as-industry-minister/) - News has emerged that former Industry and Science minister Ed Husic has been dropped from the new federal government’s cabinet. Ed Husic served as Minister for Industry and Science for all of the Albanese government’s first term (since June 2022) and also served as Shadow Minister prior to the 2022 election. Ed Husic has always - [Implications of May 2025 Federal Election Result on Business R&D and Innovation Policy Settings](https://www.swansonreed.com.au/implications-of-may-2025-federal-election-result-on-business-rd-and-innovation-policy-settings/) - Business R&D and Innovation Policy settings were not focal point of the recent federal election, which was fought primarily on cost of living. The unsuccessful Opposition Coalition had announced in the lead up to the election that their policies included: Savings by: Scrapping the Future Made in Australia (FMiA) agenda, including tax credits for green - [30 April 2025 Statutory Deadline for FY24 R&D Claims](https://www.swansonreed.com.au/30-april-2025-statutory-deadline-for-fy24-rd-claims/) - The deadline for FY24 R&D Registrations is on Wednesday, 30 April 2025. Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2024 (companies that have a Standard YE for tax) who are yet to do so should note that the Registration Deadline is 10 Months after YE, and is 30 APRIL 2025. Extensions of - [Swanson Reed Submission to Review of National R&D System - April 2025](https://www.swansonreed.com.au/swanson-reed-submission-to-review-of-national-rd-system-april-2025/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s R&D system to align it with national priorities and improve outcomes. The Government subsequently announced that the review would be led by Robyn Denholm, Chair of Tesla and an experienced leader in R&D at some of the world’s most innovative - [Statutory Deadline for FY24 R&D Claims is THIS month](https://www.swansonreed.com.au/statutory-deadline-for-fy24-rd-claims-is-this-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2024 (companies that have a Standard YE for tax) who are yet to do so should note that the Registration Deadline is 10 Months after YE. This year the deadline is Wednesday the 30th of APRIL 2025. Extensions of time may be available in - [March 2025 Federal Budget Update: No material R&D Tax Incentive changes, Strategic R&D Review still underway](https://www.swansonreed.com.au/march-2025-federal-budget-update/) - Due to the timing of the upcoming Federal election, the 2025 Federal budget was held on on Tuesday 25 March 2025, which is earlier than the traditional May timeslot. Going into the budget, it was unexpected that there would be R&D Tax Incentive changes announced given that: There was a material change announced only recently in the December 2024 - [Could a Manufacturing Patent Regime Aid Australia’s Competitiveness?](https://www.swansonreed.com.au/manufacturing-patent-box/) - The innovation statement, released in December, unveiled a $1.1 billion plan to foster innovation with 24 new measures across 11 different Government groups. Certainly, the plan is wide-ranging; however, it falls short on delivering a globally competitive commercialisation model – an area in which Australia is struggling. To clarify, the 2015 Australian Innovation System Report, released by - [How Does Australia's R&D Tax Incentive Compare to the Rest of the World?](https://www.swansonreed.com.au/how-does-australias-rd-tax-incentive-compare-to-the-rest-of-the-world/) - Internationally, governments are increasing indirect support for business R&D, particularly by the way of tax incentives. For instance, by 2011 almost 80 per cent of OECD countries had some form of R&D tax incentive in place. Hence, in a globally mobile business world, R&D investment is considered to be a key factor in enhancing skills, jobs - [Evade the Brain Drain: Sydney Start-Up Hub Set to Grow](https://www.swansonreed.com.au/evadebraindrain/) - They’re known as the Australian ‘Silicon Valley mafia’, a cabal of 20,000 talented software engineers who have relocated to Silicon Valley, the tech epicentre of the world, to follow their dreams of becoming successful entrepreneurs. But the exodus in recent years has raised concerns that Australia is losing its talent and has been left with - [How R&D Spending Correlates to Innovation](https://www.swansonreed.com.au/rdandinnovation/) - From 2015 to 2016 North America increased R&D spending by 8% rising close to $300 Billion as Europe, Japan and the Rest of the World including Australia fell by 9%, 8% and 3% respectively and China rose by 19%. Many of 2016’s Most Innovative Companies invested over $8 billion in - [Telix Pharmaceuticals solidifies Australian Biotech Success, posting net profit after years of Refundable R&D Tax Offset Recipients](https://www.swansonreed.com.au/telix-pharmaceuticals-solidifies-australian-biotech-success-posting-net-profit-after-years-of-refundable-rd-tax-offset-recipients/) - Melbourne-based Telix Pharmaceuticals has previously been one of the largest recipients of the R&D Tax incentive, and has continued its rare feat in Biotechnology; commercialising a product, and progressing to growth and profit. - [Swanson Reed's Online R&D Tax Workshop - Updated March 2025](https://www.swansonreed.com.au/swanson-reed-online-rd-tax-workshop-2025/) - Swanson Reed has recently compiled a series of training videos providing updated material on the R&D Tax Incentive. - [Statutory Deadline for FY24 R&D Claims is next month](https://www.swansonreed.com.au/statutory-deadline-for-fy24-rd-claims-is-next-month/) - Deadline for FY24 R&D tax claims is 30 April 2025. Companies with a 30 June year-end must register R&D activities. - [Treasurer Ed Husic’s Comments on R&D Tax Policy ahead of March 25 Federal Budget](https://www.swansonreed.com.au/treasurer-ed-husics-comments-on-rd-tax-policy-ahead-of-march-25-federal-budget/) - The 2025 Federal budget will be held on Tuesday 25 March. It is probably unexpected that there will be any R&D Tax Incentive changes announced. - [ATO Guidance noting Common errors in R&D Registrations and Schedules](https://www.swansonreed.com.au/ato-guidance-noting-common-errors-in-rd-registrations-and-schedules/) - When processing R&D Applications and R&D Schedules, both AusIndustry (DISR) and the ATO have processes in place to conduct integrity checks of claims and identity claims for compliance activity. Claims found to have anomalies, or that may require more detailed compliance will likely be subject to delays in processing of R&D tax offsets. On 17 July - [Swanson Reed Article on Recent ATO Alerts (TA 2023/4 and TA 2023/5) in June 2024 Tax Institute Journal](https://www.swansonreed.com.au/swanson-reed-article-on-recent-ato-alerts-ta-2023-4-and-ta-2023-5-in-june-2024-tax-institute-journal/) - A feature article authored by Swanson Reed is included in June 2024 volume of the Taxation in Australia, covering the recent R&D tax incentive taxpayer alerts. - [Commissioner of Taxation V Bakarich, December 2024 - February 2025](https://www.swansonreed.com.au/commissioner-of-taxation-v-bakarich-december-2024-february-2025/) - Watch this video for an insightful summary of the latest R&D Tax Incentive Industry Update, produced in February 2025: Commissioner of Taxation V Bakarich, December 2024 Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is - [The New Requirements to Publish R&D Expenditure Claim Information - February 2025](https://www.swansonreed.com.au/new-requirements-to-publish-r-d-expenditure-claim-information/) - Watch this video for an insightful summary of the latest R&D Tax Incentive Industry Update, produced in February 2025: The New Requirements to Publish R&D Expenditure Claim Information - [AusIndustry Software Sector Guidance and Hypothetical Machine Learning Case Study - February 2025](https://www.swansonreed.com.au/ausindustry-software-sector-guidance-and-hypothetical-machine-learning-case-study-february-2025/) - Watch this video for insight into the latest R&D Tax Incentive Industry Update: AusIndustry Software Guidance and Machine Learning Case Study - [Changes to Extension of Time Request Processes for R&D Applications - February 2025](https://www.swansonreed.com.au/changes-to-extension-of-time-request-processes-for-r-d-applications/) - Watch this video for an insightful summary of the latest R&D Tax Incentive Industry Update: Changes to Extension of Time Request Processes for R&D Applications - [Slider1](https://www.swansonreed.com.au/slider1-3/) -  - [Slider3](https://www.swansonreed.com.au/slider4-3/) - [Slider2](https://www.swansonreed.com.au/slider2-3/) - [Slider1](https://www.swansonreed.com.au/slider3-2/) - [New Administrative Review Tribunal Case Activities NOT Eligible under the R&D Tax Incentive](https://www.swansonreed.com.au/new-administrative-review-tribunal-case-activities-not-eligible-under-the-rd-tax-incentive/) - A recent decision dated 30 January 2025, has found these registered activities were not eligible under the R&D Tax Incentive. - [Discussion Paper Released for Strategic Examination and Review of Australia's R&D System](https://www.swansonreed.com.au/discussion-paper-released-for-strategic-examination-and-review-of-australias-rd-system/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s R&D system. - [Cost Of The R&D Incentive Decreasing in 2017-18](https://www.swansonreed.com.au/cost-of-the-rd-incentive-decreasing-in-2017-18/) - The Mid-Year Economic and Fiscal Outlook Report for 2017-18 has been released, outlining and explaining major changes in payment estimates. - [Swanson Reed - R&D Legislative Amendment Submission](https://www.swansonreed.com.au/swanson-reed-rd-legislative-amendment-submission/) - We have provided feedback in response to the draft legislation of amendments to the Research and Development Tax Incentive. - [Senate Economics Committee Review Into Proposed R&D Tax Incentive Changes](https://www.swansonreed.com.au/senate-economics-committee-review-into-proposed-changes/) - The Senate Economics Legislation Committee conducted a public hearing in Melbourne on 30 January which heard submissions from various stakeholders including: Cochlear Ltd; Brickworks Ltd; CSL; Dulux Group; The AFR has reported that representatives from these groups have consistently argued that continual change to R&D Tax Incentive introduces uncertainty and reduces Australia's relative attractiveness as an - [ASX Listed Software Company Receive AusIndustry Finding That R&D Activities Are Not Eligible](https://www.swansonreed.com.au/asx-listed-software-company-receive-ausindustry-finding-that-rd-activities-are-not-eligible/) - XPED LIMITED has announced to the ASX that the company has received notice from AusIndustry of a finding assessing certain registered activities as ineligible under the requirements of the R&D Tax Incentive for the FY18 period. XPED LIMITED had previously announced in the company’s interim report for the half year ended 31 December 2018 that - [OECD Figures show Australian R&D Investment Declining Against Peers](https://www.swansonreed.com.au/oecd-figures-show-australian-rd-investment-declining-against-peers/) - A report published by The Sydney Morning Herald has detailed how Australia has fallen from 114 to 107 in 2017-18, according to an OECD index of R&D investment by government. The index, measured through purchasing power parity, is expected to drop again if/when a proposed 2019 budget cut to the R&D Tax Incentive of $1.3 - [Northern Minerals Announce That AusIndustry Have Set Aside Previous Finding That R&D Activities Were Not Eligible](https://www.swansonreed.com.au/northern-minerals-announce-that-ausindustry-have-set-aside-previous-finding-that-rd-activities-were-not-eligible/) - In May 2019, Northern Minerals (ASX: NTU) announced that the company had received notice of a finding that AusIndustry had deemed that the activities registered in the FY17 and FY18 periods related to activities that were “ineligible R&D activities”, which would not be eligible for the R&D tax offset in those income years. In June - [ATO and AusIndustry R&D Tax Incentive Presentations](https://www.swansonreed.com.au/ato-and-ausindustry-rd-tax-incentive-presentations/) - Learn more about the R&D Tax Incentive with expert presentations from the Australian Taxation Office (ATO) and AusIndustry. - [Major Australian R&D Advisor (BourkeHood) has Kordametha appointed as Adminstrators](https://www.swansonreed.com.au/major-australian-rd-advisor-bourkehood-has-kordametha-appointed-as-adminstrators/) - As reported in the Media and in Notices published in ASIC earlier in the month, BourkeHood Pty Ltd has entered administration with KordaMentha having been appointed. This development may impact some companies seeking to lodge claims early in the new financial year to facilitate receipt of Refundable R&D Tax Offsets for FY23. For impacted companies, - [AusIndustry Produced Video: How to Register Your R&D Activities for the R&D Tax Incentive](https://www.swansonreed.com.au/ausindustry-produced-video-walk-through-of-the-customer-portal/) - Ausindustry have published a new video this month which has been promoted on the ATO and AusIndustry websites. The video provides information on how to register R&D activities, and includes a step-by-step through the registration process. It’s designed to make using the portal easier, faster and more efficient. The video uses software-specific examples. AusIndustry has - [Changes to R&D Clawback Mechanisms for FY22 based on ATO Guidance](https://www.swansonreed.com.au/changes-to-rd-clawback-mechanisms-for-fy22-based-on-ato-guidance-released-november-2022-video/) - Please view Changes to R&D Clawback Mechanisms for FY22 based on ATO Guidance Released November 2022 via the video posted above. The content of this video has been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on - [QLD Government to Announce Start-ups to Benefit from Deals with Major Venture Capital Firms](https://www.swansonreed.com.au/qld-government-to-announce-start-ups-to-benefit-from-deals-with-major-venture-capital-firms/) - The Queensland State Government’s Queensland Venture Capital Development Fund (QVCDF) has announced deals with five major venture capitals firms: Antler, Five V Capital, Main Sequence, Mandalay Venture Partners and Salus Ventures. The deals relate to Queensland start-ups having access to up to $200 million in new matched funding seeking to allow these investors to grow - [ATO Alert TA 2023/4 Research and Development Activities Delivered by Associated Entities - Video](https://www.swansonreed.com.au/ato-alert-ta-2023-4-research-and-development-activities-delivered-by-associated-entities-video/) - Please view ATO Alert TA 2023/4 Research and Development Activities Delivered by Associated Entities via the video posted above. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme - [ATO Alert TA 2023/5 Research and Development Activities Conducted Overseas for Foreign Related Entities - Video](https://www.swansonreed.com.au/ato-alert-ta-2023-5-research-and-development-activities-conducted-overseas-for-foreign-related-entities-video/) - Please view ATO Alert TA 2023/5 Research and Development Activities Conducted Overseas for Foreign Related Entities via the video posted above. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by - [AAT Case Active Sports Management Pty Ltd and Industry Innovation and Science Australia [2023] AATA 4078 - Video](https://www.swansonreed.com.au/aat-case-active-sports-management-pty-ltd-and-industry-innovation-and-science-australia-2023-aata-4078-video/) - Please view AAT Case Active Sports Management Pty Ltd and Industry Innovation and Science Australia [2023] AATA 4078 via the video posted above. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively - [AAT Case Lakes Oil N.L. and Industry Innovation and Science Australia [2023] - Video](https://www.swansonreed.com.au/aat-case-lakes-oil-n-l-and-industry-innovation-and-science-australia-2023/) - Please view AAT Case Lakes Oil N.L. and Industry Innovation and Science Australia [2023] via the video posted above. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme - [Research & Development Software Sector Guidance Update May 2023](https://www.swansonreed.com.au/research-and-development-software-sector-guidance-update-may-2023-video/) - Please view the Research & Development Software Sector Guidance Update May 2023 via the video posted above. Where relevant, the content of this video may have been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on their - [Swanson Reed appear in The Australian Financial Review](https://www.swansonreed.com.au/swanson-reed-appear-in-the-australian-financial-review/) - See below Swanson Reed's appearance in The Australian Financial Review: The article, published by The Australian Financial Review, titled "ATO slow on R&D payments" discusses how the Australian Taxation Office (ATO) is delaying refunds for companies claiming the Research and Development (R&D) Tax Incentive. This delay is causing financial strain for businesses that rely on timely - [Application Form for R&D Tax Incentive 2012 is now available](https://www.swansonreed.com.au/application-form-for-rd-tax-incentive-2012-is-now-available-2/) - 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 - [Swanson Reed - R&D Tax Incentive Quarterly Credits Submission](https://www.swansonreed.com.au/quarterly-credits-submission/) - Click here for the Swanson Reed R&D Tax Incentive Quarterly Credits Submission. - [Swanson Reed appear in the Financial Review](https://www.swansonreed.com.au/swanson-reed-appear-in-the-financial-review/) - With the government's recent R&D cuts from groups with revenue over $20 billion, there is some uncertainty surrounding the Australia's commitment to research and development. A recent article in the Australian Financial Review explores the possibility that Australian businesses might look to invest elsewhere where R&D tax credits are more stable. - [R&D Tax Incentive Deadline is Fast Approaching](https://www.swansonreed.com.au/rd-tax-incentive-deadline-is-fast-approaching/) - As the R&D Incentive deadline looms, companies are reminded that they need to register before 30 April to be eligible to claim for R&D activities for the 2012 financial year. This is the first year the benefits of the new R&D Tax Incentive will be seen. The R&D Tax Incentive (which replaced the R&D Tax - [Another win for an Australian Business](https://www.swansonreed.com.au/another-win-for-an-australian-business/) - Australian Biotechnology Business, Spinifex Pharmaceuticals has announced it has received an R&D Tax Incentive of approximately AUS$1.5 million. The Melbourne company established in June 2005 develops new medicinal drugs for the treatment and management of pain. The funds will be reinvested in further clinical development. Spinifex Pharmaceuticals CEO Tom McCarthy said: “This payment under the - [ZBB Energy receives $180,000 R&D Tax Incentive](https://www.swansonreed.com.au/zbb-energy-receives-180000-rd-tax-incentive/) - ZBB Energy Corporation is an industry leader in the design, development and manufacture of energy storage and power control technology. The company’s Australian subsidiary ZBB Energy Pty has announced an AUS$180,000 R&D Tax Incentive Refund for the 2012 fiscal year. Eric Apfelbach, CEO and President of ZBB Energy said "We appreciate the continued support of - [Prana Biotechnology has received $5.8 million for clinical research](https://www.swansonreed.com.au/prana-biotechnology-has-received-5-8-million-for-clinical-research-for-neurological-diseases/) - Melbourne company Prana Biotechnology has announced it has received a R&D Tax Incentive of A$2.5 million to support its scientific focus upon neurological diseases, particularly Alzheimer‘s, Parkinson‘s and Huntington‘s diseases. The payment is part of approximately A$5.8 million which is expected to be received for the 2011-12 and 2012-13 financial years. "This Australian Government funded - [HURRY! - 18 DAYS UNTIL R&D TAX INCENTIVES DEADLINE](https://www.swansonreed.com.au/hurry-18-days-until-rd-tax-incentives-deadline/) - The April 30 R&D Tax Incentive deadline (for June balancing companies) is fast approaching and companies must ensure they register all R&D activities to be eligible for the 43.5% refundable tax offset. The program is open to firms of all sizes in all sectors who are conducting eligible R&D. If your company has an aggregated - [New Quarterly R&D Tax Credits for cash-strapped SMEs released](https://www.swansonreed.com.au/new-quarterly-rd-tax-credits-for-cash-strapped-smes-released/) - From 1 January 2014, the R&D quarterly credits regime will be a new option for small cash-strapped companies wishing to claim under the R&D tax incentive. On Monday, Treasury released its proposed workings of the regime. It will allow companies eligible for the R&D refundable tax offset to obtain the benefit of the offset on a quarterly - [Are You Prepared for an AusIndustry Audit?](https://www.swansonreed.com.au/are-you-prepared-for-an-ausindustry-audit/) - Receiving an AusIndustry ‘Request for Further Information’ (or RFI) can be a daunting thing. The important thing to remember that all companies at some point in time will be monitored through the AusIndustry Compliance Continuum. The RFI is just one of the way’s for AusIndustry gather information for this purpose, so there is no need - [Another R&D Boost for Australian Mining](https://www.swansonreed.com.au/another-rd-boost-for-australian-mining/) - Perth based copper-gold explorer, Empire Resources Ltd has received an R&D Tax offset payment totalling AUD $498,631. The Government support breaks down to an R&D Tax offset payment for the metallurgical and processing techniques used by the company to evaluate and advance the high grade A Zone deposit at its wholly-owned Yuinmery copper-gold project. Managing - [AusIndustry R&D Tax Incentive Workshops](https://www.swansonreed.com.au/ausindustry-rd-tax-incentive-workshops/) - The R&D Tax Incentive provides targeted, generous and easy to access support for eligible R&D activity. Companies are able to register and claim the new R&D Tax Incentive benefit from 1 July 2012. AusIndustry is holding registration ready workshops to help SME’s, first time registrants and smaller consultants/ tax agents better understand and register for the R&D - [R&D Tax Incentive Claim for KBL Mining](https://www.swansonreed.com.au/rd-tax-incentive-claim-for-kbl-mining/) - Australian resource company KBL Mining has advised it is lodging an R&D Tax Incentive claim for the 2011-12 financial year. The claim is for some AUD$12.5 million for R&D activities in process development. For the 2010 and 2011 financial years KBL received an R&D cash rebate of $1.1 million. Eligibility for the rebate is subject to - [Patent Box Australia to make R&D Tax Incentive more competitive](https://www.swansonreed.com.au/patent-box-to-make-australias-rd-tax-incentive-more-competitive/) - Australia is one of the world leaders in innovation and R&D, but our current tax system fails to reflect the challenges of a competitive global economy, especially as it relates to domestic biotechnology and manufacturing. Recently, the Abbott Government pledged to explore 'patent box' in Australia. The patent box Australia concept has already been adopted by many European - [Bartercard Australia Pty Ltd and Commissioner of Taxation [2010] AATA 1058](https://www.swansonreed.com.au/bartercard-australia-pty-ltd-and-commissioner-of-taxation-2010-aata-1058/) - Regarding the matter of Bartercard Australia and Commissioner of Taxation, the Administrative Appeals Tribunal (AAT) assessed what classified as income for Bartercard under the Income Tax Assessment (ITA) Act 1997 and whether expenditure by Bartercard on R&D was deductible under the special rules in s. 73B of the ITA Act 1936. Background: Bartercard received payments - [Payment to Associates](https://www.swansonreed.com.au/payment-associates/) - R&D entities are only eligible for a R&D Tax offset for R&D expenditure incurred by an associate entity if the expenditure has been paid during the claim period. If you incur an amount of expenditure to an associate and you pay the amount in the same year, you can include this amount when working out - [Deductibility of R&D Expenditure Under Other Provisions](https://www.swansonreed.com.au/deductibility-rd-expenditure-provisions/) - If an amount is eligible to be claimed under the R&D tax incentive, you must claim it under Division 355 of the Income Tax Assessment Act 1997 (ITAA 1997). The answer to the frequently asked question explains this rule further. I have registered my R&D activities but want to claim some of the expenditure on - [Deferred Franking Debits](https://www.swansonreed.com.au/deferred-franking-debits/) - Does the R&D refundable tax offset generate a franking debit in my franking account? Generally, a franking debit arises in your entity’s franking account when you receive a refund of income tax which includes a refunded amount from a tax offset. However, special rules ensure that the amount of R&D tax offset refunded is not - [Advanced and Overseas Findings](https://www.swansonreed.com.au/advanced-overseas-findings/) - An Advanced Finding is a binding decision from Innovation Australia about the eligibility of a company’s activities under the R&D Tax Incentive. It operates similar to a private ruling request and has the intention to provide certainty for companies. Similarly, an Overseas Finding is a binding decision that relates to overseas activities and expenditure. There - [Lodgement Timing Differences](https://www.swansonreed.com.au/lodgement-timing-differences/) - The Industry Research and Development Act 1986 requires all applications for registration to be received by the IR&D Board within 10 months of the end of your company’s financial year end. For example, a December year-end company must lodge its application by 31 October of the following year. A June year-end company must lodge its application by 30 April - [ATO ID 2012/89 - R&D Feedstock adjustments - creation of a prototype](https://www.swansonreed.com.au/ato-id-201289-rd-feedstock-adjustments-creation-of-a-prototype/) - Does a 'feedstock adjustment' arise under section 355-465 of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to expenditure incurred by an 'Research and Development (R&D) entity' in creating a prototype which is a depreciating asset, but not one used in acquiring or producing any 'feedstock inputs'? Simply, the answer is no. A feedstock adjustment - [ATO ID 2013/11 Income Tax Research and Development - tax incentive - combination of exempt entities](https://www.swansonreed.com.au/ato-id-201311-income-tax-research-development-tax-incentive-combination-exempt-entities/) - Will Item 2 of the table in subsection 355-100(1) of the Income Tax Assessment Act 1997 (ITAA 1997) apply to a company when two or more exempt entities who are not affiliates, together beneficially own interests in the company carrying more than 50% of the voting rights or rights to a distribution of income or capital? Yes. - [ATO ID 2013/12 Income Tax Research and Development: transitional substituted accounting period (SAP) access to research and development tax incentive](https://www.swansonreed.com.au/ato-id-201312-income-tax-research-development-transitional-substituted-accounting-period-sap-access-research-development-tax-incentive/) - Is a transitional substituted accounting period (SAP) of less than 12 months that commences on or after 1 July 2011, for which an assessment is issued under section 168 of the Income Tax Assessment Act 1936 (ITAA 1936), an 'income year' to which Part 1 of Schedule 4 of the Tax Laws Amendment (Research and Development) Act 2011 (the - [ATO ID 2014/11 Income Tax Research and Development: building expenditure](https://www.swansonreed.com.au/ato-id-201411-income-tax-research-development-building-expenditure/) - Does the exclusion for 'expenditure incurred in the acquisition or construction of a building' in the definition of 'research and development expenditure' in subsection 73B(1) of the Income Tax Assessment Act 1936 (ITAA 1936) only include structural elements that form the building? No. 'Building' for the purposes of subsection 73B(1) of the ITAA 1936 also includes 'a - [TR 2013/3 Income tax: research and development tax offsets: feedstock adjustments](https://www.swansonreed.com.au/tr-20133-income-tax-research-development-tax-offsets-feedstock-adjustments/) - Summary of 104 160 689 matter Taxation Ruling: TR 2013/3A1 - Addendum Click Here GHP 104 160 689 Pty Ltd v. Commissioner of Taxation Click Here Decision Impact Statement - GHP 104 160 689 Pty Ltd Click Here *This must be read in conjunction with Taxation Ruling: TR 2013/3A1 - Addendum Paragraph 355-465(1)(a) sets out - [TD 2014/15 Income tax: when is Design Expenditure incurred by an R&D entity included in the first element of the cost of a tangible depreciating asset for the purposes of paragraph 355-225(1)(b) of the Income Tax Assessment Act 1997 (and therefore not able to be deducted under section 355-205)?](https://www.swansonreed.com.au/income-tax-design-expenditure-incurred-rd-entity-included-first-element-cost-tangible-depreciating-asset-purposes-paragraph-355-2251b/) - This Taxation Determination is concerned with where an R&D entity 1 incurs expenditure on various stages of design activities ( Design Expenditure ), connected with it beginning to hold a tangible depreciating asset, where that expenditure also falls within the terms of section 355- 205.2 This expenditure will typically be incurred in cases where the - [Research and development tax incentive calculator: About](https://www.swansonreed.com.au/research-development-tax-incentive-calculator/) - This calculator helps you calculate your research and development (R&D) tax offset claim. The research and development (R&D) tax incentive provides a targeted tax offset to encourage certain companies (R&D entities) to conduct R&D activities that benefit Australia. It provides generous benefits for companies performing eligible R&D activities and has the following two core components: - [ATO ID 2002/985 Income Tax Research and Development - 3 Year History - Additional Deduction](https://www.swansonreed.com.au/ato-id-2002985-income-tax-research-development-3-year-history-additional-deduction/) - Does the taxpayer satisfy the requirement of establishing a three year history outlined in paragraph 73Q(1)(b) of the Income Tax Assessment Act 1936 (ITAA 1936), for the three years preceding the 2002 financial year? Yes. The taxpayer was in receipt of an Research & Development (R&D) Start Grant for the 1999 and 2000 financial years and was - [ATO ID 2003/343 Income Tax R&D tax offset: 'R&D group turnover' - licence fees payable over more than one year of income](https://www.swansonreed.com.au/ato-id-2003343-income-tax-rd-tax-offset-rd-group-turnover-licence-fees-payable-one-year-income/) - What amount is included by the company in calculating the amount of 'R&D group turnover' for the purposes of determining the company's entitlement to the research and development (R&D) tax offset under section 73J of the Income Tax Assessment Act 1936 (ITAA 1936), where a licence fee under an agreement is payable over four years - [ATO ID 2003/989 Income Tax Research and Development Tax Offset: eligibility where a group member company has a substituted accounting period](https://www.swansonreed.com.au/ato-id-2003989-income-tax-research-development-tax-offset-eligibility-group-member-company-substituted-accounting-period/) - If an eligible company is grouped with another company that has a different accounting period, is it the eligible company's 'tax offset year' that is used when determining the group 'aggregate research and development amount' and the 'R&D group turnover' amount, and not the 'year of income' of the group member? Yes. The eligible company's - [ATO ID 2003/990 Income Tax Research and Development: additional deduction for incremental expenditure where a group member company has a substituted accounting period](https://www.swansonreed.com.au/ato-id-2003990-income-tax-research-development-additional-deduction-incremental-expenditure-group-member-company-substituted-accounting-period/) - If an eligible company is grouped with another company that has a different accounting period, is the 'year of income' referred to in paragraph (b) of the definition of 'R&D spend' in subsection 73P(2) of the Income Tax Assessment Act 1936 (ITAA 1936) that of the eligible company, and not that of the group member? Yes. The - [ATO ID 2003/991 Income Tax Research and Development: additional deduction for incremental expenditure where a company has a transitional substituted accounting period](https://www.swansonreed.com.au/ato-id-2003991-income-tax-research-development-additional-deduction-incremental-expenditure-company-transitional-substituted-accounting-period/) - If an eligible company in one of the three years prior to the deduction year, has lodged a return of income for a period other than 12 months, will this period represent any of the 'Y-1, Y-2 or Y-3' years when calculating 'R&D spend'? No. The 'Y-1, Y-2 and Y-3' years will be the 12 - [ATO ID 2004/701 Income tax Research and Development: 'R&D group turnover' - value of supplies made in the year of income - contract for provision of services](https://www.swansonreed.com.au/ato-id-2004701-income-tax-research-development-rd-group-turnover-value-supplies-made-year-income-contract-provision-services/) - What amounts are included in the 'value of supplies' under paragraph 73K(1)(b) of the definition of 'R&D group turnover', in the Income Tax Assessment Act 1936 (ITAA 1936), for a year of income, for a company that has entered into an agreement for the provision of services over a number of years of income, where no precise - [ATO ID 2004/702 Income tax Research and Development: 'R&D group turnover' - value of supplies made in the year of income - interest payments](https://www.swansonreed.com.au/ato-id-2004702-income-tax-research-development-rd-group-turnover-value-supplies-made-year-income-interest-payments/) - In calculating the 'value of supplies' under paragraph 73K(1)(b) of the definition of 'R&D group turnover', in the Income Tax Assessment Act 1936 (ITAA 1936), for a company that conducts business as a lender, are amounts of interest in respect of loans that were settled in a prior year of income, as well as interest in respect - [ATO ID 2004/703 Income tax Research and Development: 'R&D group turnover' - supplies made in the course of carrying on business](https://www.swansonreed.com.au/ato-id-2004703-income-tax-research-development-rd-group-turnover-supplies-made-course-carrying-business/) - In calculating the 'value of supplies' under paragraph 73K(1)(b) of the Income Tax Assessment Act 1936 (ITAA 1936) of the definition of 'R&D group turnover', for a company that has carried on a business of acting as a lender in providing mortgage loans, is the amount received for the assignment of its loan portfolio a supply made - [ATO ID 2004/808 Income Tax Research and Development: 'group membership period' and effect of viable business transfer](https://www.swansonreed.com.au/income-tax-research-development-group-membership-period-effect-viable-business-transfer/) - Is a viable business transfer necessary for an eligible company to claim the research and development additional deduction under section 73Y of the Income Tax Assessment Act 1936 (ITAA 1936), where that company has: deducted, under subsection 73B(13) or subsection 73B(14) of the ITAA 1936, an amount for incremental expenditure in the current year of - [ATO ID 2004/871 Income Tax Research and Development: clawback (section 73C) for grants and recouped expenditure and the Pharmaceutical Industry Investment Program](https://www.swansonreed.com.au/income-tax-research-development-clawback-section-73c-grants-recouped-expenditure-pharmaceutical-industry-investment-program/) - Must a company apply the 'clawback' provisions of section 73C of the Income Tax Assessment Act 1936 (ITAA 1936) to all or part of the payments received under the Pharmaceutical Industry Investment Program (PIIP)? Yes. The clawback provisions of section 73C of the ITAA 1936 apply to the research and development (R&D) component of PIIP - [ATO ID 2004/973 Income tax Research and Development: Additional deduction for incremental expenditure where a company has a transitional substituted accounting period in relation to the 'deduction year'](https://www.swansonreed.com.au/income-tax-research-development-additional-deduction-incremental-expenditure-company-transitional-substituted-accounting-period-relation-deduction-y/) - If an eligible company lodges a return of income for a period other than 12 months, will this period represent the 'year of income' (the 'deduction year' ) for the purposes of determining the company's eligibility to claim an additional deduction for incremental expenditure, and also represent the 'Y0 year' when calculating 'R&D spend'? No. The 'deduction year' for the - [ATO ID 2005/23 Income Tax Research and Development Tax Offset: legal ownership of interests in a company by an exempt entity](https://www.swansonreed.com.au/income-tax-research-development-tax-offset-legal-ownership-interests-company-exempt-entity/) - Does an exempt entity legally own interests in a company within the meaning of subsection 73J(2) of the Income Tax Assessment Act 1936 (ITAA 1936), where the Corporations Act 2001 requirements for membership of a company have not been met? No. The exception in subsection 73J(2) of the ITAA 1936 will not operate to preclude a company from choosing - [ATO ID 2005/86 Income Tax Research and Development Tax Offset: 'R&D group turnover' where ownership of interests in an eligible company by an entity in capacity as trustee](https://www.swansonreed.com.au/income-tax-research-development-tax-offset-rd-group-turnover-ownership-interests-eligible-company-entity-capacity-trustee/) - Where an eligible company is controlled by a person in a capacity as trustee, is the 'value of supplies' made by this person, as defined by subsection 73H(2) of the Income Tax Assessment Act 1936 (ITAA 1936), based only on those supplies made by it as trustee? Yes. The 'value of supplies' made by the person in - [ATO ID 2005/358 Income tax Research and Development: 'Aggregate research and development amount' where core technology expenditure not deducted](https://www.swansonreed.com.au/income-tax-research-development-aggregate-research-development-amount-core-technology-expenditure-deducted/) - Where an eligible company chooses not to deduct an amount of core technology expenditure under subsection 73B (12A) of the Income Tax Assessment Act 1936 (ITAA 1936), is the amount included in the company's 'aggregate research and development amount' as defined in subsection 73B(1) of the ITAA 1936? Yes. The amount allowable as a deduction under subsections - [ATO ID 2006/68 Income Tax Research and Development: application of section 73CA of the ITAA 1936 to a reimbursement arrangement - expenditure 'not at risk'](https://www.swansonreed.com.au/income-tax-research-development-application-reimbursement-arrangement-expenditure-risk/) - Does section 73CA of the Income Tax Assessment Act 1936 (ITAA 1936) apply where an eligible company is entitled to reimbursement for expenditure on research and development activities in the form of a fee paid by a related entity? Yes. Section 73CA of the ITAA 1936 applies in this case to amounts calculated by reference to the - [ATO ID 2006/74 Income Tax Research and Development: subsection 73B(3B) - partnership](https://www.swansonreed.com.au/income-tax-research-development-subsection-73b3b-partnership/) - Is there a 'partnership' under subsection 73B(3B) of the Income Tax Assessment Act 1936 (ITAA 1936), where two companies collaborate to conduct research and development activities, and to engage the services of a third to conduct some of these activities on their behalf? Yes. The collaboration between the two companies results in a 'partnership' under subsection 73B(3B) - [ATO ID 2006/122 Income Tax Assessable income: derivation of Commonwealth funding - Cooperative Research Centres (CRC) Programme](https://www.swansonreed.com.au/income-tax-assessable-income-derivation-commonwealth-funding-cooperative-research-centres-crc-programme/) - Are instalments paid to a taxpayer (CRC Company) under the Commonwealth Agreements for the 2004 and 2006 Selection Rounds of the CRC Programme (the Agreements), derived at the time of receipt for the purposes of section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? No. Instalments paid to a CRC Company under the Agreements are - [ATO ID 2006/136 Income Tax Research and development: consolidated group - effect of single entity rule - R & D activities of subsidiary deemed to be carried out on behalf of head company](https://www.swansonreed.com.au/income-tax-research-development-consolidated-group-effect-single-entity-rule-r-d-activities-subsidiary-deemed-carried-behalf-head-company/) - Is the effect of the single entity rule (section 701-1 of the Income Tax Assessment Act 1997 (ITAA 1997)) such that the head company of a consolidated group is considered to have carried out on its own behalf the research and development activities carried out by or on behalf of its subsidiary member for the purposes of - [ATO ID 2006/137 Income Tax R&D: consolidated group - R & D activities of subsidiary member deemed to be carried out on behalf of head company](https://www.swansonreed.com.au/ato-id-2006137-income-tax-rd-consolidated-group-r-d-activities-of-subsidiary-member-deemed-to-be-carried-out-on-behalf-of-head-company/) - Does subsection 73B(9) of the Income Tax Assessment Act 1936 (ITAA 1936), when affected by the single entity rule (section 701-1 of the Income Tax Assessment Act 1997 (ITAA 1997), prevent the head company of a consolidated group from claiming a deduction under section 73B of the ITAA 1936, for expenditure on research and development activities carried - [ATO ID 2006/138 Income Tax Research and development: consolidated group - R & D activities of two subsidiary members - only one registered](https://www.swansonreed.com.au/income-tax-research-development-consolidated-group-r-d-activities-two-subsidiary-members-one-registered/) - Can the head company of a consolidated group claim deductions under section 73B of the Income Tax Assessment Act 1936 (ITAA 1936) for research and development expenditure incurred by a subsidiary member where the only member of the consolidated group registered in relation to the relevant research and development activities is another subsidiary member? Yes. The head - [ATO ID 2006/238 Income tax Research and development: unpaid wages](https://www.swansonreed.com.au/ato-id-2006238-income-tax-research-development-unpaid-wages/) - Can an eligible company claim a deduction for certain 'unpaid wages' under subsection 73B(14) of the Income Tax Assessment Act 1936 (ITAA 1936)? No. The company cannot claim a deduction under subsection 73B(14) of the ITAA 1936 in respect of the 'unpaid wages' that have not been incurred by the company. The company is an 'eligible company' - [ATO ID 2006/259 Income Tax Capital Allowances: depreciating asset - section 73BA depreciating asset - full-scale test model](https://www.swansonreed.com.au/income-tax-capital-allowances-depreciating-asset-depreciating-asset-full-scale-test-model/) - Is the full-scale test model of an item of equipment, which is the subject matter of the taxpayer's research and development (R&D) activities, a 'section 73BA depreciating asset' within the meaning of that term in section 73BB of the Income Tax Assessment Act 1936 (ITAA 1936) for which the taxpayer has a 'notional Division 40 deduction' - [ATO ID 2006/260 Income Tax Capital Allowances: cost - section 73BA depreciating asset - full-scale test model - refinement expenses](https://www.swansonreed.com.au/income-tax-capital-allowances-cost-depreciating-asset-full-scale-test-model-refinement-expenses/) - Does the taxpayer's capital expenditure on refining the full-scale test model of their 'section 73BA depreciating asset' form part of the asset's cost for the purpose of working out the taxpayer's 'notional Division 40 deduction' under section 73BC of the Income Tax Assessment Act 1936 (ITAA 1936)? Yes. The taxpayer's capital expenditure on refining the full-scale test - [ATO ID 2006/327 Income Tax Capital Allowances: balancing adjustment event - 'section 73BA depreciating asset' - existing full-scale test model - discontinued use](https://www.swansonreed.com.au/ato-id-2006327-income-tax-capital-allowances-balancing-adjustment-event-section-73ba-depreciating-asset-existing-full-scale-test-model-discontinued-use/) - Does a balancing adjustment event occur under paragraph 40-295(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for the existing full-scale test model of the taxpayer's 'section 73BA depreciating asset' if the taxpayer discontinues use of the test model because it could not operate in the manner required? Yes. A balancing adjustment event does occur under - [ATO ID 2006/328 Income Tax Capital Allowances: cost - 'section 73BA depreciating asset' - new full-scale test model - re-use of components from earlier test model](https://www.swansonreed.com.au/income-tax-capital-allowances-cost-depreciating-asset-new-full-scale-test-model-re-use-components-earlier-test-model/) - Yes. The first element of cost of the new test model does include, pursuant to subsection 40-180(3) of the ITAA 1997, the cost attributed to those components of the earlier test model that have been re-used in building the new test model. The taxpayer is an 'eligible company', as defined in subsection 73B(1) of the Income - [ATO ID 2008/115 Income Tax Eligibility for Tax Offset: R&D tax offset and exempt entity ownership exception](https://www.swansonreed.com.au/income-tax-eligibility-rd-tax-offset-exempt-entity-ownership-exception/) - Does the exception in subsection 73J(2) of the Income Tax Assessment Act 1936 (ITAA 1936) apply, to prevent an eligible company choosing the tax offset under section 73I of the ITAA 1936, where the less than 25% exempt entity ownership requirement may not be breached if actual and potential future interests are taken into account? Yes. The - [ATO ID 2008/130 Income Tax Income tax treatment of securitisation of leases](https://www.swansonreed.com.au/income-tax-treatment-securitisation-leases/) - Does an entity that acquires motor vehicles, leases them and assigns all of its rights under the leases including an amount specified as the residual value of the motor vehicles, to a special purpose vehicle under a securitisation arrangement, hold the motor vehicles as trading stock for the purposes of Division 70 of the Income Tax - [ATO ID 2009/107 Income Tax R&D tax concession](https://www.swansonreed.com.au/ato-id-2009107-income-tax-rd-tax-concession/) - Under section 73CA of the Income Tax Assessment Act 1936 (ITAA 1936), is a company 'not at risk' in respect of an amount of expenditure if: The company incurs the expenditure in an effort to comply with a contractual obligation to deliver a certain product; and when it is incurred, it can reasonably be expected that, as - [ATO ID 2010/37 Income Tax Deductions: tax indemnity payment](https://www.swansonreed.com.au/ato-id-201037-income-tax-deductions-tax-indemnity-payment/) - Is a deduction available under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for a tax indemnity payment made to an investor pursuant to an obligation in a research and development syndicate (R&D syndicate) arrangement, if the giving of such indemnities and entering into such arrangements is a regular part of the taxpayer's business - [ATO ID 2010/74 Income Tax R&D tax concession: meaning of 'primarily' in paragraph 73B(14C)(c) of the Income Tax Assessment Act 1936](https://www.swansonreed.com.au/income-tax-rd-tax-concession-meaning-primarily-income-tax-assessment-act/) - Can the requirement in paragraph 73B(14C)(c) of the Income Tax Assessment Act 1936 ( ITAA 1936), that activities need to be carried on 'wholly or primarily on behalf of the foreign company' be met, where the relevant activities are not carried out by the eligible company solely on behalf of the foreign company? Yes. The requirement in - [Swanson Reed Risk Management](https://www.swansonreed.com.au/swanson-reed-risk-management/) - Swanson Reed understands security, tax risk management and audit control are critical to the success of your company’s research and development. At Swanson Reed pride ourselves in providing quality service with minimal risk to ensure your business receives the highest levels of quality assurance. Swanson Reed is certified to the International Organization for Standardization (ISO) 31000:2009 - [2015 Discussion Paper: Innovation in Australia, Building a Prosperous Future Through Innovation](https://www.swansonreed.com.au/2015-discussion-paper-innovation-in-australia-building-a-prosperous-future-through-innovation/) - Swanson Reed, in partnership with Wrays, have just released our 2015 discussion paper titled, Innovation in Australia Building a Prosperous Future Through Innovation. The paper is based on four innovation café workshops held by Swanson Reed and Wrays in Brisbane, Sydney, Melbourne and Perth in July and August 2015. Key findings in the paper reveal that to become an innovation - [What Does an R&D Tax Incentive Audit Involve?](https://www.swansonreed.com.au/what-does-an-rd-tax-incentive-audit-involve/) - Undeniably, the research and development (R&D) tax incentive can result in very significant cash refunds for a business which can drive its future revenue growth. However, as the R&D Tax Incentive is a self-assessed claim, AusIndustry issues ‘Request for Further Information’ (RFIs) to ensure that all companies claiming the incentive remain accountable for their claims. - [Australian R&D Spend is Decreasing for the First Time in Decades](https://www.swansonreed.com.au/australian-rd-spend-decreasing-first-time-decades/) - The Australian Bureau of Statistics has found that company expenditure on research and development has declined by 12 percent between 2013-14 and 2015-16. This is close to dipping below 1 percent of GDP, or $16.6 billion. Although manufacturing remained the largest spender of R&D, R&D spending in the mining and manufacturing industries was down. Mining decreased - [R&D Tax Incentive Legislation Update - 2019 Financial Year](https://www.swansonreed.com.au/rd-tax-incentive-legislation-update-2019-financial-year/) - Last week, the Government introduced changes to the R&D Tax Incentive as part of an Omnibus Bill, following an announcement of the changes in May's Federal Budget. It is uncertain whether the Bill will pass both the lower house of parliament and the Senate. The revisions are proposed to apply for the 2019 Financial Year. - [Royal Wins Pty Ltd and Innovation and Science Australia [2020] AATA 4320 (28 October 2020)](https://www.swansonreed.com.au/royal-wins-and-innovation-and-science-australia-2020-aata-4320-28-october-2020/) - Introduction: A recent decision in the AAT has affirmed a previous decision by Innovation and Science Australia (AusIndustry) finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements. Background: Royal Wins Pty Ltd and Innovation and Science Australia [2020] AATA 4320 (28 October 2020) was a dispute in - [The link between Business R&D, Productivity, Inflation and Interest Rates](https://www.swansonreed.com.au/link-between-business-rd-productivity-inflation-and-interest-rates/) - Australia and its global peers have experienced a rapid rise in interests rates over the past 12 months to combat high and persistent inflation. In recent months, Australia’s RBA Governor and Treasurer have begun to mention the importance of improving Australia’s productivity as a means of addressing the inflation issues. The Australian and AFR newspapers - [Upcoming R&D Tax Registration Deadline for December Year End](https://www.swansonreed.com.au/rd-tax-registration-deadline-for-december-year-end/) - For companies seeking to register R&D Activities conducted during the Year Ended 31 December 2022, the R&D Tax Registration Deadline is the end of October 2023. - [New Requirements to Publish R&D Expenditure Claim Information in 2024 - Video](https://www.swansonreed.com.au/new-requirements-to-publish-rd-expenditure-claim-information-in-2024-video/) - There are new requirements to publish an R&D expenditure claim in 2024. This video explores how these changes promote transparency and accountability. - [AusIndustry update confirms applications lodged well before deadline are subject to faster processing (take action now for FY24 deadline)](https://www.swansonreed.com.au/ausindustry-update-confirms-applications-lodged-well-before-deadline-are-subject-to-faster-processing-take-action-now-for-fy24-deadline/) - The deadline for FY24 R&D Claims (for the YE 30 June 2024) is fast approaching. In an update published in late January, AusIndustry have confirmed that leaving lodgement until close to the deadline will understandably lead to longer processing times for R&D Registrations. The update notes: We recommended lodging your application for the 2023-24 financial - [If R&D Tax Law is going to be changed effective 1 July, (as announced in the FY25 MYEFO), how about making these changes too?](https://www.swansonreed.com.au/if-rd-tax-law-is-going-to-be-changed-how-about-making-these-changes-too/) - A surprising announcement was made by The Government in the FY25 MYEFO released in late December 2024, which took the unprecedented step of announcing an eligibility restriction to be applied to specific sectors. The MYEFO budget papers noted: The Government will exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility for - [Potential Impact of Incoming US Government on Australian Business and R&D Tax Policy](https://www.swansonreed.com.au/potential-impact-of-incoming-us-government-on-australian-business-and-rd-tax-policy/) - Following the US election in 2024, a new Government will be installed in the US during January 2025. The impact of the new Trump Government on US R&D and tax policy is not immediately clear, and it may impact some industries differently to others. Possible impacts may include: there will be a clear push to favor US - [Business Council renews calls for increase to R&D Tax Incentive Expenditure Cap](https://www.swansonreed.com.au/business-council-renews-calls-for-increase-to-rd-tax-incentive-expenditure-cap/) - The initial cap on eligible expenditure under the R&D Tax incentive was originally introduced around 2015 and set at $100 million. The R&D Tax Incentive (Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 then introduced adjustments to the intensity threshold ranges, increasing the cap on claimable R&D expenditure from $100 million to $150 million. In - [December 2024 MYEFO Announces Exclusion for Gambling and Tobacco Companies under the R&D Tax Incentive](https://www.swansonreed.com.au/december-2024-myefo-announces-exclusion-for-gambling-and-tobacco-companies-under-the-rd-tax-incentive/) - The 2024‑25 Mid‑Year Economic and Fiscal Outlook (MYEFO) was released by the Government on 18 December 2024. In what is a new approach to Australian Government R&D Tax Policy changes, a restriction is being applied to specific sectors. The budget papers note: The Government will exclude activities related to gambling and tobacco from Research - [Federal court matter (December 2024) declares that respondent was a promoter of a tax exploitation scheme to secure R&D Tax Offset.](https://www.swansonreed.com.au/federal-court-matter-december-2024-declares-that-respondent-was-a-promoter-of-a-tax-exploitation-scheme-to-secure-rd-tax-offset/) - A federal court case with judgement dated 16 December 2024 (with The Commissioner of Taxation as the Applicant and a number of parties as Respondents) has declared that respondents were promoters of tax exploitation schemes to secure R&D tax offsets pursuant to Division 355 of the Income Tax Assessment Act 1997 (Cth) for a number of companies. Very large penalties have - [New ATO Taxpayer Alert (TA 2024/1) for Early Stage Investor Tax Offset Claimed using Circular Financing Arrangements](https://www.swansonreed.com.au/new-ato-taxpayer-alert-ta-2024-1-for-early-stage-investor-tax-offset-claimed-using-circular-financing-arrangements/) - On 10 December 2024 the ATO released TA 2024/1: Early stage investor tax offset claimed using circular financing arrangements. The alert notes that: The ATO are currently reviewing cases where individuals have claimed the early stage investor tax offset on shares acquired through tailored financing arrangements. These arrangements appear designed to artificially meet the conditions - [Australian Government Announces details regarding Review of National R&D System](https://www.swansonreed.com.au/australian-government-announces-details-regarding-review-of-national-rd-system/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s R&D system to align it with national priorities and improve outcomes. This week, Ed Husic has announced specific details to launch the review, the first such comprehensive review in nearly 20 years. The review will assess how to maximise the - [New Federal Court Decision re: Active Sports Management Pty Ltd finds R&D Activities not eligible](https://www.swansonreed.com.au/new-federal-court-decision-re-active-sports-management-pty-ltd/) - An AAT decision handed down in December 2023 (Active Sports Management Pty Ltd and Industry Innovation and Science Australia) previously found that activities in respect of development of a customised basketball shoe were not eligible under the R&D Tax Incentive. It was found in the AAT case that, “none of the Claimed Activities were core R&D activities - [Changes to Extension of Time request processes for R&D Applications](https://www.swansonreed.com.au/changes-to-extension-of-time-request-processes-for-rd-applications/) - AusIndustry have announced and released an updated version of the Extension of Time (EOT) form through the R&D Tax Incentive (R&DTI) customer portal. Companies are required to use the portal when applying for any extension of time to submit an R&D application if it is not able to be submitted by the original deadline (with - [Update on the R&D Review (announced in the May 2024 Budget)](https://www.swansonreed.com.au/update-on-the-rd-review-announced-in-the-may-2024-budget/) - In the May 2024 federal budget, The Albanese Government announced a strategic examination and review of Australia’s R&D system to align it with national priorities and improve outcomes. InnovationAus has recently provided an updated on the status of the review and noted that terms of reference for the review are awaiting approval from The Albanese - [AusIndustry information sessions in November 2024](https://www.swansonreed.com.au/ausindustry-information-sessions-in-november-2024/) - AusIndustry have announced they will be conducting a R&D Tax Incentive Registration webinar on TUESDAY 12 NOVEMBER 2024. This webinar material notes that it will be introductory and will cover: An introduction to the program; Guide through the key eligibility requirements; Provide the opportunity to ask questions. Representatives from AusIndustry and ATO are noted as being in - [R&D Tax Incentive expenditure exceeded the Industry Department’s projections](https://www.swansonreed.com.au/rd-tax-incentive-expenditure-exceeded-projections/) - Reporting by InnovationAus has detailed how the value of Australia’s Research and Development Tax Incentive (“RDTI”) has significantly exceeded the Industry Department’s projections by nearly $860 million for the last financial year. Recent Government data reveals that the RDTI accounted for 30.9% ($4.23 billion) of all Commonwealth R&D investment in 2023-24, an increase from the expected 27% ($3.37 billion). - [Changes to AAT](https://www.swansonreed.com.au/changes-to-aat/) - The Administrative Appeals Tribunal (AAT) was originally established in 1976 and provides independent merits review of a wide range of administrative decisions made under the laws of the Commonwealth of Australia. The AAT has traditionally been the first course of action for companies seeking to raise tax disputes, offering a relatively lower-cost method compared to - [Swanson Reed observations on media and industry reaction to ATO's required publishing of R&D data under transparency laws](https://www.swansonreed.com.au/swanson-reed-observations-on-media-and-industry-reaction-to-atos-required-publishing-of-rd-data-under-transparency-laws/) - Following the support of both major political parties, the legislation to enact the publication of Research and Development (R&D) expenditure claimant information was passed in 2021. - [Cochlear Comments on Australian R&D Tax and Innovation Policy](https://www.swansonreed.com.au/cochlear-comments-on-australian-rd-tax-and-innovation-policy/) - A recent article in The Australian has outlined comments from Dig Howitt, CEO of Cochlear, who believes Australia is at a crossroads when it comes to commercialising new innovative products. - [ATO Release First R&D Tax Incentive Transparency Reporting Data](https://www.swansonreed.com.au/ato-release-first-rd-tax-incentive-transparency-reporting-data/) - As now required by law, The Australian Taxation Office (ATO) has released its first annual Research and Development (R&D) tax transparency report on entities claiming the R&D tax offset. The information the ATO published includes: name of the R&D entity claiming the R&D tax incentive and their ABN/ACN; entity’s total expenditure on R&D (known as - [R&D Tax Registrations - Deadline this month](https://www.swansonreed.com.au/rd-tax-registrations-deadline-this-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 31 December 2023 (companies that have a December Year End for tax) who are yet to do so should note that the Registration Deadline is the end of October 2024. The extensions granted during COVID no longer apply, and the statutory deadlines revert to normal (10 - ['Made in Queensland' Round 7 Grant Applications](https://www.swansonreed.com.au/made-in-queensland-round-7-grant-applications/) - The Queensland Government has announced that Round 7 grant applications for their Made in Queensland (MIQ) Grant will open on September 24th. MIQ offers grants up to $2.5 million for Queensland small to medium manufacturers. The program is designed to help manufacturers increase their international competitiveness, productivity and innovation, and generate high-skilled jobs for - [AusIndustry Information Sessions in September 2024](https://www.swansonreed.com.au/ausindustry-information-sessions-in-september-2024/) - AusIndustry have announced they will be conducting a R&D Tax Incentive Registration webinar on Wednesday, 11 September. - [Recent AusIndustry explanations on registration processing timeframes](https://www.swansonreed.com.au/recent-ausindustry-explanations-on-registration-processing-timeframes/) - This time of year (shortly after financial year end) companies can often be eager to receive their R&D Registration notices to facilitate lodgement of R&D Claims within their company tax returns. This is particularly so for SME tax loss companies who may be seeking to receive Refundable R&D Tax Offsets within their tax returns. In - [AusIndustry Publishes New Hypothetical Machine Learning Case Study.](https://www.swansonreed.com.au/ausindustry-publishes-new-hypothetical-machine-learning-case-study/) - AusIndustry have recently published a case study to provide practical examples for eligibility of activities involving machine learning. It's probable that this guidance has been in response to a rising number of claims involving AI and ML type activities. The examples in the case studies will assist R&D entities identify when they might have eligible R&D activities, and - [ATO's First R&D Tax Incentive (R&D TI) Transparency Report](https://www.swansonreed.com.au/atos-first-rd-tax-incentive-rd-ti-transparency-report/) - The ATO have provided some additional details on their upcoming R&D Tax Incentive transparency reporting. - [Assessment of AI related activities under the R&D Tax Incentive and potentially emerging compliance focuses](https://www.swansonreed.com.au/assessment-of-ai-related-activities-under-the-rd-tax-incentive-and-potentially-emerging-compliance-focuses/) - Artificial Intelligence (AI) has been a hot topic in recent years with more companies seeking to utilise the technology in order to capitalise on gains in capability and efficiency. Increasing numbers of companies are investing in AI developments and anecdotally, this probably means an increasing number of companies submitting claims for AI related developments under - [AusIndustry Changes to Advance and Overseas Finding R&D Application Forms](https://www.swansonreed.com.au/ausindustry-changes-to-advance-and-overseas-finding-rd-application-forms/) - Ausindustry have announced this week that an updated version of the Advance and Overseas Finding (AOF) form is now available - [New OECD report notes Australia’s R&D tax incentives among world’s most generous](https://www.swansonreed.com.au/new-oecd-report-notes-australias-rd-tax-incentives-among-worlds-most-generous/) - The latest annual report from the OECD has noted that Australia’s R&D tax incentives are among the most generous in the developed world. - [Swanson Reed presenting R&D Tax update at MSIA Event - July 2024](https://www.swansonreed.com.au/swanson-reed-presenting-rd-tax-update-at-msia-event-july-2024/) - Swanson reed is providing an update on the R&D Tax Incentive at an event on Thursday, July 25th, 2024 in Brisbane presented by MSIA (Medical Software Industry Association). The 2024 MSIA Brisbane event is being held in conjunction with the Australian Digital Health Agency (ADHA) to provide a full day of updates and insights in - [Significant Refundable R&D Offsets receipts reported to the ASX in recent months](https://www.swansonreed.com.au/significant-refundable-rd-offsets-receipts-reported-to-the-asx-in-recent-months-2/) - August 15, 2026 Over recent months, a number of companies have reported to the ASX receipt of substantial Refundable R&D Tax Offsets. Notable receipts include: Recce Pharmaceuticals (ASX: RCE) received $2.6 M related to its anti-infective platform; Latrobe Magnesium (ASX: LMG) received $12.5 M related to Magnesium extraction technology; Group 6 Metals (ASX:G6M) received $14.3 M related to - [FY24 R&D Registrations Now Open](https://www.swansonreed.com.au/fy24-rd-registrations-now-open/) - Companies are now able to register R&D Activities conducted during the year ended 30 June 2024 (FY24) with AusIndustry. For the FY24 period, the application process is again administered through the new online AusIndustry customer portal which was introduced for the prior FY21 period. We understand that the AusIndustry activity disclosure requirements for FY24 are - [Important R&D Tax associate entity payment rule considerations approaching end of the financial year](https://www.swansonreed.com.au/important-rd-tax-associate-entity-payment-rule-considerations-approaching-end-of-the-financial-year-2/) - The R&D Tax Incentive, includes a related party integrity provision whereby if a company incurs R&D expenditure to an associate, it must pay that amount in the same year to claim a notional deduction for that amount in that year. - [New ATO Alerts on R&D Tax: 1: Activities Delivered by Associated Entities AND 2: Activities Conducted Overseas for Foreign Related Entities](https://www.swansonreed.com.au/new-ato-alerts-on-rd-tax-1-activities-delivered-by-associated-entities-and-2-activities-conducted-overseas-for-foreign-related-entities/) - On 15 December 2023, the ATO has released two new taxpayer alerts: Taxpayer Alert TA 2023/4 Research and development activities delivered by associated entities. This relates to arrangements identified by the ATO where an entity incorrectly claims the R&D tax offset for expenditure incurred under an agreement with an associated entity who conducts those activities. Taxpayer - [Deadline approaching for lodgement of Overseas Findings for R&D Activity first conducted in FY24](https://www.swansonreed.com.au/deadline-approaching-for-lodgement-of-overseas-findings-for-rd-activity-first-conducted-in-fy24/) - Companies seeking to claim expenditure for overseas activity incurred by an Australian company under the R&D Tax Incentive must apply separately to claim these costs by first lodging an Overseas Finding Application with AusIndustry. In addition to general eligibility criteria, there are specific and extensive rules to determine whether expenditure on overseas activities is eligible under the - [Another case involving Moreton Resources Ltd](https://www.swansonreed.com.au/another-case-involving-moreton-resources-ltd/) - Moreton Resources Ltd (currently under external administration per ASIC records) has been involved in several cases heard in the AAT and federal court regarding disputes over the company’s significate refundable R&D Tax Offset claims. Moreton Resources Ltd has also been one of the few companies to have attained a favourable outcome in a dispute with the R&D - [Additional ATO R&D Guidance published May 2024](https://www.swansonreed.com.au/additional-ato-rd-guidance-published-may-2024/) - In recent weeks the ATO has updated R&D Tax Incentive specific guidance on their website - [Media Coverage of Business Reaction to Review of Australia's R&D System](https://www.swansonreed.com.au/media-coverage-of-business-reaction-to-review-of-australias-rd-system/) - In the wake of the recent 2024-25 federal budget announcement that the government will conduct of review of Australia’s research and development system, business leaders have been quick to declare that any change must NOT seek to reduce R&D tax incentives. This was highlighted in an article published by The Australian Financial Review last week. The independent - [Federal Budget May 2024 - No changes to R&D Tax Incentive, Strategic examination of Australia's R&D System Flagged](https://www.swansonreed.com.au/federal-budget-may-2024-no-changes-to-rd-tax-incentive-strategic-examination-of-australias-rd-system-flagged/) - Leading into the May 2024 budget, no changes were anticipated to be made to the R&D Tax Incentive; however, recent media reports in 2024 floated the idea of the Government conducting a review of the programme for potential future changes. Based on a preliminary review of the 2024 budget material, no material changes seem to have been proposed to the R&D Tax Incentive, which is good news. In the budget papers - [Industry Minister comments and Government R&D Policy leading into budget (May 2024)](https://www.swansonreed.com.au/industry-minister-comments-and-government-rd-policy-leading-into-budget-may-2024/) - May 2023 will mark the Labor government's third budget in this term. Industry Minister Ed Husic has not seemed to make any significant comments about the R&D Tax Incentive programme this year, and announcements so far have included: A “Health Research for a Future Made in Australia” package which has a total investment of $1.89 - [Changes to Breach reporting under the Tax Agent Services Act and Implications for The R&D Tax Incentive](https://www.swansonreed.com.au/changes-to-breach-reporting-under-the-tax-agent-services-act-and-implications-for-the-rd-tax-incentive/) - The Tax Practitioners Board (“TPB”) has recently taken steps to reinforce the laws surrounding registered tax agents and BAS advisors in understanding breach reporting obligations. This move comes in response to a series of controversies within the industry. Significant changes are set to commence from 1 July 2024, which includes new obligations for tax practitioners to - [ATO publishes DIS on AAT decision in GQHC and Commissioner of Taxation re: ATO assessment of eligibility of R&D Activities](https://www.swansonreed.com.au/ato-publish-dis-on-aat-decision-in-gqhc-and-commissioner-of-taxation-re-ato-assessment-of-eligibility-of-rd-activities/) - ATO decision impact statements (DIS) are documents which seek to advise the community of the ATO’s view on the implications of a particular court or tribunal decision. The statement provides information for taxpayers and advisers. The AAT decision of GQHC and Commissioner of Taxation (Taxation) [2024] AATA 409 was handed down in February 2024 and the - [R&D Recreating Business](https://www.swansonreed.com.au/rd-recreating-business/) - Competitive Differentiation We are all beyond aware of the rapidity of innovation today. In less than twenty years we have seen the technological dreams of Sci-Fi favourites come to life. Just this July we watched as the launch of Pokemon GO transformed the business sphere overnight, creating new methods of engaging consumers. As we accelerate - [30 April Statutory Deadline for FY23 R&D Claims - One Week to Go](https://www.swansonreed.com.au/30-april-statutory-deadline-for-fy23-rd-claims-one-week-to-go/) - There is one week to go until the deadline for FY23 R&D Registrations. Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2023 (companies that have a Standard YE for tax) who are yet to do so, should note that the Registration Deadline is 10 Months after YE, and 30 APRIL - [Court of Appeal rules the ATO is lawfully entitled to share information in case of taxpayer charged by the Commonwealth DPP for attempting to unlawfully obtain R&D tax offset](https://www.swansonreed.com.au/court-of-appeal-rules-the-ato-is-lawfully-entitled-to-share-information-in-case-of-taxpayer-charged-by-the-commonwealth-dpp-for-attempting-to-unlawfully-obtain-rd-tax-offset/) - The matter concerns an individual charged by the Commonwealth DPP for attempting to unlawfully obtain a refund under the R&D Tax Incentive. Before being charged, the taxpayer was compulsorily examined by the ATO. The individual had applied to stay the proceedings against them partly by arguing that the ATO had unlawfully distributed transcripts of examinations - [2023 Annual Report for IISA: Update on R&D Tax Legal matters and litigation](https://www.swansonreed.com.au/2023-annual-report-for-iisa-update-on-rd-tax-legal-matters-and-litigation/) - Industry Innovation and Science Australia (IISA) is the government department responsible for determining whether companies’ activities meet the legislative criteria eligible under the R&D Tax Incentive. The 2022-23 Annual Report for IISA was recently released, and a section of the report provides an update on legal matters and litigation relevant to the department. When comparing - [Statutory Deadline for FY23 R&D Claims is THIS month](https://www.swansonreed.com.au/statutory-deadline-for-fy23-rd-claims-is-this-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2023 (companies that have a Standard YE for tax) who have yet to do so should note that the Registration Deadline is 10 Months after the YE, and 30 APRIL 2024. The blanket and automatic extensions granted during COVID do NOT apply - [AusIndustry Webinar - Software Activities](https://www.swansonreed.com.au/ausindustry-webinar-software-activities/) - AusIndustry have announced that they will be hosting a webinar on Wednesday, 27 March, where subject matter experts will answer questions related to R&D Claims for software development, including: eligibility requirements; activity descriptions; and record keeping. Registration information is available on the AusIndustry website. Please get in touch with our office if you require assistance, would - [New AAT Case: GQHC and ATO Considers Feedstock Provisions and Scope of ATO Power to Assess Activity Eligibility in Absence of AusIndustry Finding](https://www.swansonreed.com.au/new-aat-case-gqhc-and-ato-considers-feedstock-provisions-and-scope-of-ato-power-to-assess-activity-eligibility-in-absence-of-ausindustry-finding/) - A new AAT case dated 16 February 2024 (GQHC and Commissioner of Taxation (Taxation) [2024] AATA 409), considered a situation where the ATO determined a company had not engaged in eligible R&D activities, but where no findings had been made by AusIndustry, who usually has jurisdiction over activity assessment. The matter considered jurisdiction issues of: - [Industry Examples of Refundable R&D Tax Offset Eligibility Cliff for Companies Breaching $20M Turnover Threshold](https://www.swansonreed.com.au/industry-examples-of-refundable-rd-tax-offset-eligibility-cliff-for-companies-breaching-20m-turnover-threshold/) - Australia’s R&D Tax Incentive program is designed to encourage innovation by providing tax refunds to eligible companies based on their R&D spending. However, companies face a refund cliff if their revenue exceeds the legislated turnover threshold. A company’s rate of R&D tax offset and whether it is refundable or not depends primarily on the R&D - [Statutory Deadline for FY23 R&D Claims is Next Month](https://www.swansonreed.com.au/statutory-deadline-for-fy23-rd-claims-is-next-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2023 (companies that have a Standard YE for tax) who are yet to do so should note that the Registration Deadline is 10 Months after YE, and 30 APRIL 2024. The blanket and automatic extensions granted during COVID do NOT apply any longer or for FY23 - [Industry Ministers Comments on R&D Tax Incentive within Recent Government Release in February 2024](https://www.swansonreed.com.au/industry-ministers-comments-on-rd-tax-incentive-within-recent-government-release-in-february-2024/) - On 15 Feb 2024, Ed Husic’s department made a press release titled ‘Government investing billions in research and development’ to accompany the release of the 2023–24 science, research and innovation (SRI) budget tables. The government notes in the release that: Investing in Research and Development (R&D) is fundamental to delivering the Government’s priorities to: rebuild Australia’s manufacturing - [Altium Affirmed as One of Australia’s Greatest Ever Technology Companies on $9b Takeover](https://www.swansonreed.com.au/altium-affirmed-as-of-australias-greatest-ever-technology-companies-on-9b-takeover/) - Altium Ltd has origins in Hobart in the 1980’s, and sells software to help people design printed circuit boards. Following an IPO, the stock at one stage reached a low of $0.08, however, in testament to the company’s success, the company has entered a scheme of implementation agreement in February 2024 for Japan’s Renesas Electronics - [Swanson Reed Thoughts on Media Article Calling for Overhaul of R&D Tax Incentive](https://www.swansonreed.com.au/swanson-reed-thoughts-on-media-article-calling-for-overhaul-of-rd-tax-incentive/) - An article was circulated over the past week authored by Sandy Plunkett on InnovationAus and quoting some credentialed individuals, calling for an overhaul of the R&D Tax Incentive and Australia's innovation system more broadly. The article included points around: Australian business is falling behind international peers in R&D performance; The R&D tax incentive is counter-intuitive - [Industry R&D Investment Expectations Fall to Decade Low, Stability of R&D Tax Incentives Crucial](https://www.swansonreed.com.au/industry-rd-investment-expectations-fall-to-decade-low-stability-of-rd-tax-incentives-crucial/) - In late January, InnovationAus ran a story providing commentary on a survey conducted by Australian Industry Group (Ai Group), showing only 19 percent of firms intend to raise their level of R&D investment, with 69 per cent expected to maintain spending at 2023 levels. While firms report a positive investment outlook, including for R&D, the - [ATO Release New Information around Public Disclosure of R&D Claims](https://www.swansonreed.com.au/ato-release-new-information-around-public-disclosure-of-rd-claims/) - The Australian Taxation Office (ATO) has in recent months published information around publication of Research and Development (R&D) expenditure claimant information. An additional update was provided by the ATO in late January 2024 which notes: The annual Research and Development tax transparency reporting will publish information about R&D claims; Each year, the ATO will publish: - [New AAT Case Finds Development of Shoe to Suit Professional Basketball Player NOT Eligible Under the R&D Tax Incentive](https://www.swansonreed.com.au/new-aat-case-finds-development-of-shoe-to-suit-professional-basketball-player-not-eligible-under-the-rd-tax-incentive/) - A new AAT decision handed down in December 2023 (Active Sports Management Pty Ltd and Industry Innovation and Science Australia) has found that activities in respect of development of a customised basketball shoe were not eligible under the R&D Tax Incentive. Background points from the case include: Active Sports Management Pty Ltd, the applicant, carries out - [December 2023 MYEFO indicates cost of R&D Tax Incentive is growing](https://www.swansonreed.com.au/december-2023-myefo-indicates-cost-of-rd-tax-incentive-is-growing/) - The 2023‑24 Mid‑Year Economic and Fiscal Outlook (MYEFO) was released by the Government in December 2023. New estimates within MYEFO show the R&D Tax Incentive (‘RDTI’) is expected to cost an extra $2.1 billion over the next four years, including an additional $432 million in FY22-23. According to the report, the increase is being driven - [Significant Refundable R&D Offsets Receipts Reported to the ASX in Recent Months](https://www.swansonreed.com.au/significant-refundable-rd-offsets-receipts-reported-to-the-asx-in-recent-months/) - Over recent months, a number of companies have reported to the ASX receipt of substantial Refundable R&D Tax Offsets. Notable receipts include: Syntara Limited (ASX: SNT) reported a $5.25 million Refundable R&D tax offset related to its clinical development pipeline including PXS-5505 in myelofibrosis project; Neurotech International (ASX: NTI) reported a $3.17 million Refundable R&D - [Limit to Extensions of Time for R&D Applications (92 Days after Statutory Deadline)](https://www.swansonreed.com.au/limit-to-extensions-of-time-for-rd-applications-92-days-after-statutory-deadline/) - 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 - [National Reconstruction Fund Investment Mandate Published and Can Begin Investing](https://www.swansonreed.com.au/national-reconstruction-fund-investment-mandate-published-and-can-begin-investing/) - Leading up to the 2022 federal election, the (then) Opposition Leader Anthony Albanese pledged in early 2022 that he would use Labor’s proposed $15 billion National Reconstruction Fund to make technology and local manufacturing investments a top priority. Labor went on to win the election, and enacted the fund. The objective of the NRF is to - [High Court Denies Special Leave to the Commonwealth on Behalf of Employees](https://www.swansonreed.com.au/high-court-denies-special-leave-to-the-commonwealth-on-behalf-of-employees/) - Various laws determine the manner in which a company's assets are distributed to employees and creditors in the event of an insolvency event. In a decision handed down by the New South Wales Supreme Court in 2022, the order of priority of payments in a winding up where employee debts and secured creditor claims exist - [ATO Update Titled ‘R&D Tax Incentive: Future Focus’ and Upcoming Dual Agency Compliance Reviews](https://www.swansonreed.com.au/ato-update-titled-rd-tax-incentive-future-focus-and-upcoming-dual-agency-compliance-reviews/) - Participants in the R&D Tax Incentive can expect a greater level of compliance activity soon. The ATO has published an update this month titled ‘R&D Tax Incentive: Future Focus’. The update announced a series of future-focused initiatives aimed at ensuring the integrity of the Research and Development Tax Incentive (R&DTI) program. The ATO update notes - [R&D Tax Risk Reporting Within ATO Top 500 Program](https://www.swansonreed.com.au/rd-tax-risk-reporting-within-ato-top-500-program/) - In November 2023, the ATO published information about the Top 500 program. The Top 500 program is one of several programs administered as part of the Tax Avoidance Taskforce. The objective of the Taskforce is to provide the Australian Government and the community with confidence that Australia’s largest public and private groups are paying the - [Clarifying R&D Program Integrity Rules](https://www.swansonreed.com.au/clarifying-rd-program-integrity-rules/) - On 27 Oct 2023 the ATO posted a new guidance document titled 'Clarifying R&D program integrity rules'. The document covers areas of R&D Compliance that the ATO are concerned with including: R&D expenditure to associates The conducted for test Aggregated turnover for determining eligibility for Refundable R&D Tax Offsets Overseas activity expenditure Expenditure not at risk. - [Joint AusIndustry and ATO information Sessions in November](https://www.swansonreed.com.au/joint-ausindustry-and-ato-information-sessions-in-november/) - AusIndustry have announced that in early November they will be conducting a joint event with the ATO to provide introductory level information regarding the R&D Tax Incentive. The sessions are noted as covering: The benefits offered by the R&D Tax Incentive; Who can apply; What R&D activities and expenditure are eligible; The importance of record keeping; - [ATO Release Information Around Public Disclosure of R&D Claimant Information](https://www.swansonreed.com.au/ato-release-information-around-public-disclosure-of-rd-claimant-information/) - In a significant shift in administration, the Australian Taxation Office (ATO) has this month published information around publication of Research and Development (R&D) expenditure claimant information. This move forms part of the administration changes to the Research and Development Tax Incentive (R&DTI) program initiated on 1st July 2021, which arose out of the previous government's major - [AFR reports high profile ASX listed Software Company Subject to ATO Review of R&D Tax Offsets](https://www.swansonreed.com.au/afr-reports-high-profile-asx-listed-software-company-subject-to-ato-review-of-rd-tax-offsets/) - The AFR has reported in late September 2023, that officials from the Australian Taxation Office visited a high profile ASX listed software development company last month as part of inquiries about whether the group inappropriately claimed R&D Tax Offsets. The article seems to suggest that the issue may relate to overclaiming of expenditure on - [Finalised Tax Determination on Aggregated Turnover and Connected Entities - Commissioner's Discretion That an Entity Does Not 'Control' Another Entity](https://www.swansonreed.com.au/finalised-tax-determination-on-aggregated-turnover-and-connected-entities-commissioners-discretion-that-an-entity-does-not-control-another-entity/) - After previously issuing a draft ruling in June 2023, the ATO in September 2023 has now finalised and published Tax Determination TD 2023/5 on aggregated turnover and connected entities - Commissioner's discretion that an entity does not 'control' another entity. Under the R&D Tax Incentive a company’s rate of R&D tax offset and whether it is - [LAKES OIL NL Provides Update on R&D Tax Activities Found Ineligible](https://www.swansonreed.com.au/lakes-oil-nl-provides-update-on-rd-tax-activities-found-ineligible/) - A recent AAT Decision dated 26 April 2023 (LAKES OIL NL and INNOVATION AND SCIENCE AUSTRALIA (Taxation) ) found a company’s registered activities were not eligible under the R&D Tax Incentive. The project under scrutiny in the case was entitled “Project 1 – LAK2006 ‘Hydraulic Fracturing Technology for Gippsland Tight Gas’”. The dispute was focused on a - [Interaction between R&D Tax Incentive and Small Business Technology Investment Boost](https://www.swansonreed.com.au/interaction-between-rd-tax-incentive-and-small-business-technology-investment-boost/) - Under the recently enacted small business technology investment boost, small businesses with an aggregated annual turnover of less than $50 million will be allowed an additional 20% tax deduction to support their digital operations and digitise their operations. The boost applies to eligible expenditure incurred between 7:30 pm AEDT on 29 March 2022 and 30 - [Ignite Ideas Fund - Round 11 Now Open to QLD Businesses](https://www.swansonreed.com.au/ignite-ideas-fund-round-11-now-open-to-qld-businesses/) - The QLD government has announced that round 11 of the Ignite Ideas funding is available to commercialise highly innovative and new products or services that are at minimum viable product stage or beyond. The Ignite Ideas Fund is designed to support Queensland based small to medium businesses that have high-growth potential to undertake commercialisation projects - [Flight Centre Uses Technology Investment to Increase Productivity on Path Back to Profitability and Dividends](https://www.swansonreed.com.au/flight-centre-uses-technology-investment-to-increase-productivity/) - Flight Centre uses technology investment to increase productivity on path back to profitability after a series of crises in recent years during the pandemic. - [BCA "Seizing the Moment" Report Flags Importance of R&D Tax Incentive and Addressing Productivity Issues](https://www.swansonreed.com.au/bca-seizing-the-moment-report-flags-importance-of-rd-tax-incentive-and-addressing-productivity-issues/) - This week, the Business Council of Australia (BCA) released a report titled "Seizing the Moment"which proposes a plan to reverse the nation’s productivity slump and drive competitiveness. The report warns that Australia can’t just keep relying on good luck to create economic success. The BCA highlights that if Australia wants sustained wage growth and to - [ATO Guidance Update: Claiming the R&D tax incentive this tax time](https://www.swansonreed.com.au/ato-guidance-update-claiming-the-rd-tax-incentive-this-tax-time/) - The ATO has circulated an R&D tax incentive guidance update on August 17 2023. This ATO guidance update outlines key factors for claimants to consider. - [Government Proposes Enormous Increase in Maximum Fines for Firms Engaged in Tax Exploitation Schemes](https://www.swansonreed.com.au/government-proposes-enormous-increase-in-maximum-fines-for-firms-engaged-in-tax-exploitation-schemes/) - In response to the recent scandals in the tax profession, the Government has proposed to increase maximum fines on firms engaged in tax exploitation scheme by around 100 times. The move would see firms face fines of up to $780m for exploiting tax loopholes, and other changes made to regulators’ powers. The promoter penalty laws - [Company Involved in R&D Tax Dispute over Software Development Activity Now in Liquidation](https://www.swansonreed.com.au/company-involved-in-rd-tax-dispute-over-software-development-activity-now-in-liquidation/) - Royal Wins Pty Ltd and Innovation and Science Australia [2020] was an AAT case where it was found that the company’s software development activities did not meet the requirements under the R&D Tax Incentive. The claims were substantial and found by the AAT to not be suitably substantiated. The AFR has recently reported that the company is - [Joint AusIndustry and ATO Information Sessions in August](https://www.swansonreed.com.au/joint-ausindustry-and-ato-information-sessions-in-august/) - AusIndustry have announced that on Thursday the 24th of August, they will be conducting a joint event with the ATO to provide introductory level information regarding the R&D Tax Incentive. The sessions are noted as covering: The benefits offered by R&D Tax Incentive Who can apply What R&D activities and expenditure are eligible The importance - [ALPHA HPA Limited Progresses Development of High Purity Alumina Plant in Gladstone QLD](https://www.swansonreed.com.au/alpha-hpa-limited-progresses-development-of-high-purity-alumina-plant-in-gladstone-qld/) - Gladstone based ALPHA HPA (ASX: A4N) has commercialised the world’s first adoption of the solvent extraction (SX) purification technique to aluminium to produce a growing range of ultra-high purity aluminium materials. The AFR notes that shares in the company have increased by approximately 150% over the past 12 months. The high purity aluminium oxides, hydroxides, nitrates - [Media Reports of a Raid by Federal Police and Tax Office Agents Related to an R&D Claim](https://www.swansonreed.com.au/media-reports-of-a-raid-by-federal-police-and-tax-office-agents-related-to-an-rd-claim/) - One of the major national newspapers has this week posted an article seeming to suggest that a raid by federal police and tax office agents on a start up in recent weeks may have been linked to the company’s R&D Claims. Swanson Reed does not know specifics of this case, nor know whether the media - [Federal Court Decision re: R&D Entity Claiming Overseas Components Without an Overseas Finding](https://www.swansonreed.com.au/federal-court-decision-re-rd-entity-claiming-overseas-components-without-an-overseas-finding/) - As noted on the Swanson Reed blog in November 2022, an AAT decision handed down in October 2022 (T.D.S BIZ PTY LTD and Commissioner of Taxation) considered the case of an R&D Entity attempting to claim the cost of overseas moulds, fabrication, CAD and assembly within their R&D Tax Incentive claim without having first attained - [Former Labor Government Senator and Industry Minister Kim Carr Comments on Government R&D Policy](https://www.swansonreed.com.au/former-labor-government-senator-and-industry-minister-kim-carr-comments-on-government-rd-policy/) - Former Labor Government senator and industry minister Kim Carr authored an opinion article in the AFR on 18 June 2023 titled “Has Labor written off its promise to supercharge R&D?" Notable points in the article include: The Labor Party’s stated policy aim is to lift R&D expenditure from 1.8 per cent of GDP to 3 - [Nufarm Ltd's Plant-based Fish Oil Substitute Could Become a Billion Dollar Industry](https://www.swansonreed.com.au/nufarm-ltds-plant-based-fish-oil-substitute-could-become-a-billion-dollar-industry/) - Melbourne-based Nufarm Ltd is a pioneer and leader in development of Agricultural technologies and offers a range of crop protection and seed technology solutions. The company’s annual report for the YE 30 September 2022 reports a research and development expenditure of $51M. In recent years Nufarm Ltd (via its subsidiary entity Nuseed), has invested in - [Important R&D Tax Associate Entity Payment Rule Considerations Approaching End of the Financial Year](https://www.swansonreed.com.au/important-rd-tax-associate-entity-payment-rule-considerations-approaching-end-of-the-financial-year/) - The R&D Tax Incentive includes a related party integrity provision whereby if a company incurs R&D expenditure to an associate, it must pay that amount in the same year to claim a notional deduction for that amount in that year (provided all other eligibility requirements for the R&D tax incentive are met). Associates are those - [Should policy makers be considering an increase to the $20 million turnover threshold re: eligibility for the Refundable R&D Tax offset?](https://www.swansonreed.com.au/should-policy-makers-be-considering-an-increase-to-the-20-million-turnover-threshold-re-eligibility-for-the-refundable-rd-tax-offset/) - A company’s rate of R&D tax offset and whether it is refundable or not depends primarily on the R&D entity's aggregated turnover: If an entity’s aggregated turnover is less than $20 million and it is not controlled by any exempt entities, then the company can claim the refundable tax offset. The refundable tax offset rate - [Deadline Approaching for lodgement of Overseas Findings for R&D Activity first conducted in FY23](https://www.swansonreed.com.au/deadline-approaching-for-lodgement-of-overseas-findings-for-rd-activity-first-conducted-in-fy23/) - Companies seeking to claim expenditure for overseas activity incurred by an Australian company under the R&D Tax Incentive must apply separately to claim these costs by lodging an Overseas Finding Application with AusIndustry. In addition to general eligibility criteria, there are specific and extensive rules to determine whether expenditure on overseas activities is eligible under the R&D - [No material changes to R&D Tax Incentive in May 2023 Federal Budget](https://www.swansonreed.com.au/no-material-changes-to-rd-tax-incentive-in-may-2023-federal-budget/) - The Labor Government previously handed down their first (mini) budget in October 2022 and has now handed down their first full budget in the traditional May timeslot. Leading into this budget, there was not anticipated to be any changes proposed to the R&D Tax Incentive, since the previously announced changes for FY22 had only - [New AAT Case (LAKES OIL) finds Hydraulic Fracturing Activities NOT eligible under the R&D Tax Incentive](https://www.swansonreed.com.au/new-aat-case-lakes-oil-finds-hydraulic-fracturing-activities-not-eligible-under-the-rd-tax-incentive/) - A recent AAT Decision dated 26 April 2023 (LAKES OIL NL and INNOVATION AND SCIENCE AUSTRALIA (Taxation) ) has found a company’s registered activities were not eligible under the R&D Tax Incentive. The project under scrutiny in the case is entitled “Project 1 – LAK2006 ‘Hydraulic Fracturing Technology for Gippsland Tight Gas’”. The dispute was - [Federal Government Releases Australia’s First National Quantum Strategy](https://www.swansonreed.com.au/federal-government-releases-australias-first-national-quantum-strategy/) - On Wednesday 3 May, the federal government released Australia’s first National Quantum Strategy. Australian investment in quantum technologies is urgently needed, says Industry Minister Ed Husic, Australia led the world in offering postgraduate quantum physics qualifications 30 years ago, and today has more than 20 world-leading quantum companies operating in the country, but Minister for - [Industry Minister Comments on R&D Policy Leading into Budget](https://www.swansonreed.com.au/industry-minister-comments-on-rd-policy-leading-into-budget/) - May 2023 will mark the Labor government's second budget in this term, as the budget moves back to its traditional May timing. Leading into the budget time, whether the R&D Tax Incentive is effective, or should be tinkered with (including by changing it to a grant or Government assessment/merit system, rather than broad based self - [Hazer Group Ltd Reports approval of $9.45M FY22 R&D Tax Offset in FY22](https://www.swansonreed.com.au/hazer-group-ltd-reports-approval-of-9-45m-fy22-rd-tax-offset-in-fy22/) - Perth based Hazer Group Limited is a pioneering ASX-listed technology development company undertaking the commercialisation of the HAZER® Process, a low-emission hydrogen and graphite production process. The company’s process enables the effective conversion of natural gas and similar feedstocks, into hydrogen and high quality graphite, using iron ore as a process catalyst. In April 2023 - [Statutory Deadline for R&D Applications for the YE 30 June 2022 Fast Approaching…](https://www.swansonreed.com.au/statutory-deadline-for-rd-applications-for-the-ye-30-june-2022-fast-approaching/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2022 (companies that have a standard YE for tax) who are yet to do so should note that the standard Registration Deadline is 10 Months after YE, and 30 APRIL 2023. The blanket and automatic extensions granted during COVID do NOT apply any longer or for FY22 - [Statutory Deadline for FY22 R&D Claims is Next Month](https://www.swansonreed.com.au/statutory-deadline-for-fy22-rd-claims-is-next-month/) - Companies seeking to register R&D Activities conducted during the Year Ended 30 June 2022 (companies that have a Standard YE for tax) - [New Accelerating Commercialisation Grants Announced in March and April 2023](https://www.swansonreed.com.au/new-accelerating-commercialisation-grants-announced-in-march-and-april-2023/) - New Accelerating Commercialisation grants have been announced in March and April 2023, which are the first awarded since the new government came into power in May 2022. Unlike the R&D Tax Incentive, which is a self-assessed, eligibility-based system enshrined in the law (where if companies can prove they meet the criteria, they can access the - [Labor Government’s Flagship $15b Manufacturing Fund Passes into Law](https://www.swansonreed.com.au/labor-governments-flagship-15b-manufacturing-fund-passes-into-law/) - Leading up to the 2022 federal election, the (then) Opposition Leader Anthony Albanese pledged in early 2022 that he would use Labor’s proposed $15 billion National Reconstruction Fund (NRF) to make medical technology, local manufacturing and other critical industry investments a top priority. After some debate in recent months, The National Reconstruction Fund (NRF) Corporation bill was - [Recent NSW Supreme Court Case Regarding Claims Over R&D Tax Offset Refunds in Company Insolvency](https://www.swansonreed.com.au/rd-tax-offset-refunds-in-company-insolvency/) - Various laws determine the manner in which a company's assets are distributed to employees and creditors in the event of an insolvency event. In a decision handed down by the New South Wales Supreme Court in 2022, the order of priority of payments in a winding up where employee debts and secured creditor claims exist - [Draft Legislation Released for R&D Tax Incentive](https://www.swansonreed.com.au/draft-legislation-for-rd-tax-incentive-changes/) - The Government announced on 8 May 2018 that the Research and Development Tax Incentive (R&DTI) would be reformed and that changes would apply from 1 July 2018. - [Application of R&D Tax Incentives to Software debated during Senate Select Committee of Financial Technology](https://www.swansonreed.com.au/application-of-rd-tax-incentives-to-software-debated-during-senate-select-committee-of-financial-technology/) - Fintech Australia has used a speech at the Senate Select Committee of Financial Technology and Regulatory Technology to call for better clarity. - [Argent Minerals - Market Update On AusIndustry Findings](https://www.swansonreed.com.au/argent-minerals-market-update-on-ausindustry-findings/) - R&D Claims must be compiled and assessed with care and claimants should consider guidance material published by AusIndustry and the ATO on R&D Tax Compliance. - [Industry Minister Comments on Business Investment in R&D and Our Call for Maintaining Stability of the R&D Tax Incentive](https://www.swansonreed.com.au/industry-minister-comments-on-business-investment-in-rd/) - The freshly appointed Minister for Industry and Science, Ed Husic, recently held a press conference with Chief Scientist. - [Australian Business Investment In R&D Has Fallen](https://www.swansonreed.com.au/australian-business-investment-rd-fallen/) - According to the OECD Science, Technology and Industry Scoreboard 2017 and Australian Bureau of Statistics, Australian spending on research and development was down from 2.11 percent of GDP in 2013-14 to 1.88 percent in 2015-16, with the OECD average being 2.38 percent. Chief Executive of Universities Australia Belinda Robinson said that this represented a stark warning - [New Guidance Relating to Feedstock Adjustments](https://www.swansonreed.com.au/feedstock-adjustments/) - AusIndustry and the ATO have recently released joint guidance in relation to the calculation and disclosure of feedstock adjustments. - [Reports Industry Minister Is Considering Changes To The Administration Of The R&D Tax Incentive](https://www.swansonreed.com.au/reports-industry-minister-considering-changes-to-administration-of-the-rd-tax-incentive/) - InnovationAus.com has reported that Industry Minister Karen Andrews is investigating potential changes to the administration - [Coronavirus Information and Support for Business](https://www.swansonreed.com.au/coronavirus-information-and-support-for-business/) - The government has, over recent weeks, announced a wide variety of stimulus measures to assist businesses to cope with the Coronavirus situation. - [Startups Using Accrued R&D Tax Offsets to Access Finance Ahead of Lodgement](https://www.swansonreed.com.au/startups-using-accrued-rd-tax-offsets-to-access-finance-ahead-of-lodgement/) - Unlock capital for your startup with R&D tax offsets. This comprehensive guide outlines the benefits of R&D tax offsets, how to apply them, and best practices. - [R&D Tax Incentive Advocate CSL Rapidly Adapts R&D Effort to focus on COVID-19](https://www.swansonreed.com.au/rd-tax-incentive-advocate-csl-rapidly-adapts-rd-effort-to-focus-on-covid-19/) - CSL is the leading R&D tax incentive advocate in Australia, helping businesses make the most of their research and development investments. - [Breville Group Reports Increased R&D Investment Delivering Results](https://www.swansonreed.com.au/breville-group-reports-increased-rd-investment-delivering-results/) - Breville Group is committed to driving growth and innovation through increased investment in research, development, and design - [Telix Pharmaceuticals reports receipt of $11.4M Refundable R&D Tax Offset](https://www.swansonreed.com.au/telix-pharmaceuticals-reports-receipt-of-11-4m-refundable-rd-tax-offset/) - Telix Pharmaceuticals has announced record-breaking revenues of $11.4M in 2020, a significant increase from the previous year. - [The Senate Inquiry into R&D Tax Incentive Reforms is Delayed for the Third Time This Year](https://www.swansonreed.com.au/the-senate-inquiry-into-rd-tax-incentive-reforms-is-delayed-for-the-third-time-this-year/) - The Senate Inquiry into R&D Tax Incentive Reforms is a comprehensive exploration of the changes proposed to Australia's R&D Tax Incentive program. - [Australian Companies Increasing Project Investment Based on More Favorable R&D Tax Environment](https://www.swansonreed.com.au/australian-companies-increasing-project-investment-based-on-more-favorable-rd-tax-environment/) - Australian companies are now investing in projects more than ever before – discover the latest trends and learn how to get involved. - [R&D Tax Registration Deadline for YE 30 June 2020 is April](https://www.swansonreed.com.au/rd-tax-registration-deadline-for-ye-30-june-2020-is-april/) - Don't miss the deadline! Register for R&D Tax Incentives before 30 April 2020 to get a tax credit or cash refund for YE 30 June 2020. - [R&D Tax Incentive Statistics within Commissioner of Taxation Annual Report](https://www.swansonreed.com.au/rd-tax-incentive-statistics-within-commissioner-of-taxation-annual-report/) - Get up-to-date R&D Tax Incentive statistics and analysis from the Commissioner of the Australian Government’s Research and Development Tax Incentive program. - [Neuren Pharmaceuticals becomes another Australian Biotech Success Story after US FDA Approves Treatment for Rett Syndrome](https://www.swansonreed.com.au/neuren-pharmaceuticals-rett-syndrome/) - Victorian based Neuren Pharmaceuticals’ North American partner, Acadia Pharmaceuticals, has received news this week that its treatment for Rett syndrome was approved by the US Food and Drug Administration. Neuren Pharmaceuticals and Acadia Pharmaceuticals had previously entered an exclusive licence in 2018 to develop and commercialise trofinetide for the treatment of Rett syndrome and other - [Limited Time Remaining for Application of Temporary Full Expensing Provisions to R&D Assets (30 June 2023)](https://www.swansonreed.com.au/application-of-temporary-full-expensing-provisions-to-rd-assets/) - In the October 2020 budget, the Government introduced augmented stimulus measures to encourage investment and allow eligible businesses to claim an immediate deduction for the cost of an asset in the year the asset is first incurred. This included measures for Temporary Full Expensing of assets that an entity first acquires/installs between 7:30pm AEDT on - [‘Pick a policy and stick to it’: CSL’s CEO calls for stability on innovation incentives.](https://www.swansonreed.com.au/pick-a-policy/) - CSL is one of Australia's greatest business and technical success stories and its shares have provided one of the best returns on the ASX among listed companies over the past decade. CSL has also been a very strong advocate of the R&D Tax Incentive and lobbied for maintenance of a strong and stable incentive to encourage local - [Upcoming Senate Debate Over Reconstruction/Manufacturing fund](https://www.swansonreed.com.au/upcoming-senate-debate-over-reconstruction-manufacturing-fund/) - Leading up to the 2022 federal election, the (then) Opposition Leader Anthony Albanese pledged in early 2022 that he would use Labor’s proposed $15 billion National Reconstruction Fund to make medical technology and local manufacturing investments a top priority. Labor went on to win the election, and are now looking at legislative measures to enact - [The R&D Tax Incentive: Glossary of Frequently Used Terms](https://www.swansonreed.com.au/the-rd-tax-incentive-glossary-of-terms/) - Undeniably, confusion still reigns for many small business owners applying for the R&D Tax Incentive. Indeed, even the jargon littered throughout the description of the scheme could give anyone without a tax background a head spin. In light of this, we’ve collated a glossary of key terms to help businesses better understand the incentive and what - [New technology helps accountants become R&D tax experts](https://www.swansonreed.com.au/new-technology-helps-accountants-become-rd-tax-experts/) - Today, Swanson Reed officially launched, TaxTrex - a cloud based software solution designed to help accountants and their clients become experts in the R&D Tax Incentive. TaxTrex is Australia's first platform to bridge the gap between the R&D tax adviser, the tax agent, and their client. Why use TaxTrex? TaxTrex allows the company's external accountant to prepare R&D claims with - [R&D Tax: Deadline for FY14 and new Feedstock guidance](https://www.swansonreed.com.au/rd-tax-deadline-fy14-new-feedstock-guidance/) - 30 April 2015 is the deadline to claim the R&D Tax Incentive for eligible activities conducted during the year ended 30 June 2014 (ie last financial year). Any companies still seeking to lodge FY14 claims should take action ASAP to ensure their activities are adequately assessed and described within their registration applications. This includes the need to provide - [Enrolments Open for the TaxTrex 2017 Record Keeping Program](https://www.swansonreed.com.au/enrolments-open-for-the-taxtrax-2017-record-keeping-program/) - With the 2017 financial year fast approaching, Swanson Reed is calling all companies and accountants to enrol in our TaxTrex 2017 record keeping program. Enrolments will be open from now until 30 June. To claim the R&D Tax Incentive, companies must collect timestamped documentation detailing the progress of their R&D projects. TaxTrex simplifies this process into - [Updated AAT Decision (Moreton Resources Ltd V IISA) Finds Some Disputed Activities Were R&D Activities](https://www.swansonreed.com.au/public-release-of-updated-aat-decision-moreton-resources-ltd-v-iisa-finds-some-disputed-activities-were-rd-activities/) - Last decade, there were a number of R&D Tax Disputes heard by the courts with the majority of decisions seeming to find in favour of the regulators that claims (most of which were large) were not eligible. The original Federal Court decision in 2019 regarding Moreton Resources Ltd and Industry Innovation and Science Australia was - [New ATO Clawback of R&D Tax Offset Guidance Published](https://www.swansonreed.com.au/new-ato-clawback-of-rd-tax-offset-guidance-published/) - Under the amendments to the R&D Tax Incentive commencing for FY22, there was no change to the definition of eligible R&D activities and R&D expenditure. However there was a significant change to the clawback mechanisms, among other changes to offset calculations and administrative processes. The FY22 changes for Clawback Adjustment processes were particularly complex. The - [New AAT Case Finds in Favour of Applicant Reinstatement of Review](https://www.swansonreed.com.au/new-aat-case-finds-in-favour-of-applicant-reinstatement-of-review/) - A recent AAT decision handed down in November 2022 (Active Sports Management Pty Ltd and Industry Innovation and Science Australia) has allowed a company seeking review of an AusIndustry decision to be reinstated, on the grounds that the review was dismissed in error. The AAT found that while the company did not comply with certain - [2022 Annual Report for IISA Shows Rapid Decline in R&D Tax Dispute Litigation](https://www.swansonreed.com.au/2022-annual-report-for-iisa-shows-rapid-decline-in-rd-tax-dispute-litigation/) - Industry Innovation and Science Australia (IISA) is the government department responsible for determining whether companies’ activities meet the legislative criteria eligible under the R&D Tax Incentive. The 2021-22 Annual Report for IISA was recently released, and a section of the report provides an update on legal matters and litigation relevant to the department. When comparing the - [ASX listed entities report substantial R&D Tax Offsets in recent months](https://www.swansonreed.com.au/asx-listed-entities-report-substantial-rd-tax-offsets-in-recent-months/) - A number of Australian companies have reported substantial Refundable R&D Tax Offset receipts in recent months, including: Starpharma received a refund of $7.1M for FY22 R&D activity to progress three clinical-stage assets; ClearVue Technologies received a refund of $0.81M for FY22 R&D activity to progress its clean energy technologies; Estrella resources a refund of $1.01M - [Updated R&D Tax Incentive guidance published on ATO Website](https://www.swansonreed.com.au/updated-rd-tax-incentive-guidance-published-on-ato-website/) - In various R&D Tax Incentive updates attended by ATO personnel over the past year it had been indicated that refreshed R&D Tax Incentive guidance material would likely be published by the end of 2022. Updates to the R&D Tax Incentive content on the ATO website have now been made and it’s noted on the main - [AAT decision on tax agent's termination by TPB for failure to receive R&D advice before lodging ITRs](https://www.swansonreed.com.au/a-recent-aat-decision-published-in-november-2022-involved-the-case-of-a-tax-agent-and-firm-the-applicants-contesting-a-decision-by-the-tax-practitioners-board-tpb-who-had-decided-to-terminate-the/) - A recent AAT decision published in November 2022 involved the case of a tax agent and firm (the Applicants), which ran a medium sized practice with approximately 450 client groups contesting a decision by the Tax Practitioners Board (TPB) who had decided to terminate the tax agent registrations and to disqualify them from applying for tax registration for a - [AFR Article on how CSL priced the world’s most expensive drug](https://www.swansonreed.com.au/afr-article-on-how-csl-priced-the-worlds-most-expensive-drug/) - CSL is one of Australia's greatest business and technical success stories and its shares have provided one of the best returns on the ASX among listed companies over the past decade. CSL has also been a very strong advocate of the R&D Tax Incentive and lobbied for maintenance of a strong and stable incentive to - [InnovationAus 2022 Awards for Excellence - Cybersecurity Winners](https://www.swansonreed.com.au/innovationaus-2022-awards-for-excellence-cybersecurity-winners/) - Cybersecurity has been a major focus for Government, industry, and even everyday Australians given the recent high profile breaches. Cyber Security Minister Clare O'Neil recently announced a new cyber task force, calling privacy laws a ‘national vulnerability’. She also said the Federal Government is considering making it illegal to pay ransoms, stating that Australian businesses - [Australian Patent Box Tax Incentive Appears Not to be Proceeding](https://www.swansonreed.com.au/australian-patent-box-tax-incentive-appears-not-to-be-proceeding/) - The previous Coalition Federal Government had first announced that it planned to introduce a patent box tax incentive for eligible income associated with new patents in the medical and biotechnology sectors in the May 2021 federal budget. The legislation to enact this was introduced to the lower house in February 2022 (with a proposed start date of July - [New AAT Case re: R&D Entity Claiming Overseas Moulds/Assembly etc. Without an Overseas Finding](https://www.swansonreed.com.au/new-aat-case-re-rd-entity-claiming-overseas-moulds-assembly-etc-without-an-overseas-finding/) - A new AAT decision handed down in October 2022 (T.D.S BIZ PTY LTD and Commissioner of Taxation) considered the case of an R&D Entity attempting to claim the cost of overseas moulds, fabrication, CAD and assembly within their R&D Tax Incentive claim without having first attained an Overseas Finding from AusIndustry. This is one of - [New Government's Federal Budget October 2022 - No R&D Tax Changes (Thankfully!)](https://www.swansonreed.com.au/new-governments-federal-budget-october-2022-no-rd-tax-changes-thankfully/) - The new Labor Government has handed down their first budget in October 2022. Leading into this budget, there was not anticipated to be any changes proposed to the R&D Tax Incentive, since the previously announced changes for FY22 had only recently been legislated by the previous Coalition government, and were passed with support from - [International and Domestic Uptake of Medtech R&D](https://www.swansonreed.com.au/international-and-domestic-uptake-of-medtech-rd/) - Australia’s medical technology industry has experienced significant growth over the past few years, with industry experts saying healthcare is a major area for digital disruption. In 2021, the medtech industry was investing $10 billion a year in Australia, up from around $300 billion in 2013, according to the New Daily. Whatsmore, 15 of the top - [R&D Tax Registrations - Upcoming Deadlines](https://www.swansonreed.com.au/rd-tax-registrations-upcoming-deadlines-2/) - Companies seeking to register R&D Activities conducted during the Year Ended 31 December 2021 (companies that have a December YE for tax) who are yet to do so should note that the Registration Deadline is the end of October 2022. The blanket and automatic extensions granted during COVID no longer apply, and the statutory deadlines revert to - [Airtasker Provide Positive R&D Tax Update in FY22 Results](https://www.swansonreed.com.au/airtasker-provide-rd-tax-update-in-fy22-results/) - Airtasker had previously been associated with the “compliance crackdown” on R&D Tax Incentive Claims, particularly for software, after reports emerged in December 2018 that the company’s prior year claims were being disputed following ATO review. Airtasker’s dispute came around the time of other reported R&D tax disputes whereby companies such as CBA and Newcrest made - [Australian based Immutep Ltd receives $2.693M AUD R&D Tax Refund from French Government](https://www.swansonreed.com.au/australian-based-immutep-ltd-receives-2-693m-aud-rd-tax-refund-from-french-government/) - ASX Listed, Sydney based company Immutep Ltd (ASX:IMM) has recently announced on 23 September 2022 that it has received a €1,804,341 (around A$2,693,000) payment in cash from the French Government under its Crédit d’Impôt Recherche scheme (CIR). A similar magnitude payment was received in the previous years. The payment relates to activity the company is - [New AAT Case Finds Software Activities NOT Eligible Under the R&D Tax Incentive](https://www.swansonreed.com.au/new-aat-case-finds-software-activities-not-eligible-under-the-rd-tax-incentive/) - A recent AAT Decision handed down in July 2022 (Absolute Vision Technologies Pty Limited and Innovation and Science Australia (Taxation)) has found a company’s software development activities were not eligible under the R&D Tax Incentive. Prior to this decision, there was only a limited number of previous decisions on Software R&D Eligibility heard by the - [ATO and AusIndustry R&D Tax Incentive Presentations in Coming Months](https://www.swansonreed.com.au/ato-and-ausindustry-rd-tax-incentive-presentations-in-coming-months/) - The Australian Taxation Office (ATO) and AusIndustry have advised that they will host a series of online sessions for stakeholders seeking to learn more about the R&D Tax Incentive. The sessions aim to provide an introduction to the R&D Tax Incentive and guidance on key eligibility requirements. The sessions are being held online in October - [ATO Update 2022 R&D Schedule Instructions](https://www.swansonreed.com.au/ato-update-2022-rd-schedule-instructions/) - R&D Claims for the YE 30 June 2022 involve a number of changes from prior years, reflective of the legislative amendments arising in the October 2020 budget. These amendments change the mechanisms for calculation and reporting of R&D Tax offsets to the ATO, which also presents the need for corresponding changes in the company tax - [Rix’s Creek Pty Limited; Bloomfield Collieries Pty Limited v Innovation Australia [2017] AATA 645](https://www.swansonreed.com.au/rixs-creek-pty-limited-bloomfield-collieries-pty-limited-v-innovation-australia-2017-aata-645/) - Introduction The case Rix’s Creek Pty Limited; Bloomfield Collieries Pty Limited and Innovation Australia [2017] AATA 645, refers to two related mining companies which registered and claimed for the R&D Tax Concession for the years 2008 to 2012. After reviews were conducted on the claimed activities, Innovation and Science Australia found that the majority of - [Academics call for R&D Tax Incentives to be Diverted to Direct Funding Initiatives, Swanson Reed Disagrees](https://www.swansonreed.com.au/academics-call-for-rd-tax-incentives-to-be-diverted-to-direct-funding-initiatives-swanson-reed-disagrees/) - In an article published in the AFR on 30 April, Deputy vice-chancellor of research at the University of Sydney Emma Johnston called on the government to fund research and innovation directly (e.g. via a grant), rather than through tax incentives. It was noted as being part of a push for greater mobility between the corporate - [InnovationAus Analysis of Public Funding for R&D in USA Compared with Australia](https://www.swansonreed.com.au/innovationaus-analysis-of-public-funding-for-rd-in-usa-compared-with-australia/) - A recent article by Dr John Howard on InnovationAus has highlighted a comparison between Public Funding for R&D in USA (following passage of a new act) against Australia. The article highlights that: The Chips for America Fund (US$52.7 billion) and recently enacted CHIPS and Science Act will authorise a five-year US$169.9 billion (A$245 billion) Research - [New Industry and Science Minister Ed Husic Meets with Tech Sector Leaders Ahead of September Jobs and Skills Summit](https://www.swansonreed.com.au/new-industry-and-science-minister-ed-husic-meets-with-tech-sector-leaders-ahead-of-september-jobs-and-skills-summit/) - StartupDaily has reported that over the past week, the new Minister for Industry and Science, Ed Husic, has held discussions with industry leaders covering themes including: Science and commercialisation (August 17) Digital and tech skills (August 17) Advanced manufacturing (August 18) Artificial intelligence (August 19). The discussions come ahead of the new Government's planned Jobs - [Telix Pharmaceuticals becomes Australian Biotech Success Story after being one of largest Refundable R&D Tax Offset Recipients](https://www.swansonreed.com.au/telix-pharmaceuticals-becomes-australian-biotech-success-story-after-being-one-of-largest-refundable-rd-tax-offset-recipients/) - Melbourne-based Telix Pharmaceuticals has been one of the largest recipients of the R&D Tax incentive, and has now achieved a rare feat in Biotechnology; commercialising a product, and continuing to grow. The company reportedly received a more than $12M R&D tax offset refund for activity undertaken during the year ended 31 December 2020, and more - [Productivity Commission Review of Industry Assistance and Upcoming Federal Budget](https://www.swansonreed.com.au/productivity-commission-review-of-industry-assistance-and-upcoming-federal-budget/) - The Productivity Commission is the Australian Government’s independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians. It states its role is to help governments make better policies, in the long term interest of the Australian community. In early August 2022, The Productivity Commission published its - [TPB Confirms Assisting With R&D Matters Constitutes a Tax Agent Service](https://www.swansonreed.com.au/tpb-confirms-assisting-with-rd-matters-constitutes-a-tax-agent-service/) - The Tax Practitioners Board (TPB) recently published Exposure Draft TPB Information Sheet TPB(I) D48/2022 What is a tax agent service? The document seeks to provide information regarding the TPB’s position on the application of subsection 90-5 of the Tax Agent Services Act 2009 (TASA), containing the definition of a tax agent service. Advisors that provide tax agent - [UK R&D Tax Incentive Changes to Restrict Costs for Activity Not Physically Conducted in UK](https://www.swansonreed.com.au/uk-rd-tax-incentive-changes-to-restrict-costs-for-activity-not-physically-conducted-in-uk/) - The UK Government has just published draft legislation that includes signification changes to R&D tax incentives, proposed to take effect from 1 April 2023 (noting typical UK tax periods run 1 April to 31 March). Perhaps one of the biggest proposed changes is the restriction of expenditure for overseas activity: In some cases, before the - [Federal Government Funding in Australian Renewable Energy Sector](https://www.swansonreed.com.au/federal-government-funding-in-australian-renewable-energy-sector/) - Australia is currently faced with a growing energy crisis and investment in clean energy technology and renewable generation infrastructure has been a large focus of federal governments. In 2020, the previous Government committed to invest at least $20 billion in low emissions technologies by 2030, to drive more than $80 billion of total public and - [Slight Changes to Login to AusIndustry R&D Tax Portal](https://www.swansonreed.com.au/slight-changes-to-login-to-ausindustry-rd-tax-portal/) - AusIndustry have announced that the R&D Tax Incentive Portal has transitioned to the Australian Government Digital Identity System to verify users. This has presented a change to the login process when accessing the R&D Tax Incentive Portal. From late June 2022, when logging into the R&D Tax Portal, the login button will display ‘Continue with Digital Identity’, replacing - [NZ Media Reports that Australian Tax Incentive a Threat to NZ Video Game Development Industry](https://www.swansonreed.com.au/nz-media-reports-that-australian-tax-incentive-a-threat-to-nz-video-game-development-industry/) - A recent article on www.stuff.co.nz has highlighted that Australia’s R&D Tax Incentive and Digital Games Tax Offset has the NZ video game development industry worried The article highlights that: Australia’s proposed Digital Games Tax Offset (DGTO), an initiative of the former coalition federal government which has not yet passed as law, is a threat to New Zealand’s - [FY22 R&D Registrations Now Open](https://www.swansonreed.com.au/fy22-rd-registrations-now-open/) - Companies are now able to register R&D activities conducted during the year ended 30 June 2022 (FY22) with AusIndustry. For the FY22 period, the application process is again administered through the new online customer portal which was introduced for the prior FY21 period. There were substantial changes made to the R&D activity technical description requirements - [Draft Taxation Determination TD 2013/D9 released by ATO for public comment](https://www.swansonreed.com.au/draft-taxation-determination-td-2013d9-released-ato-public-comment/) - Last week, the ATO released for public comment draft Taxation Determination "Income tax: when will Design Expenditure incurred by an R&D entity be included in the cost of a tangible depreciating asset within paragraph 355-225(1)(b) of the Income Tax Assessment Act 1997 (and therefore not able to be deducted under section 355-205)?" Submissions are due by 24 - [ATO Release Finalised Tax Ruling TR 2021/5 (At Risk Rule)](https://www.swansonreed.com.au/ato-release-finalised-tax-ruling-tr-2021-5-at-risk-rule/) - Under SECT 355.405 ITAA97, an entity cannot claim R&D expenditure in situations where: (a) when an entity incurs R&D expenditure, consideration has been received, or was reasonably expected to be received: as a direct or indirect result of the expenditure being incurred; and regardless of the results of the activities on which the expenditure is - [Pure Hydrogen Corporation Provides Update on Settlement of Dispute to Repay R&D Tax Refund](https://www.swansonreed.com.au/pure-hydrogen-corporation-provides-update-on-settlement-of-dispute-to-repay-rd-tax-refund/) - As previously reported, Real Energy Ltd was involved in a dispute with R&D Tax Incentive programme regulators over the eligibility of its R&D activities spanning a number of years. Corporate activity between Real Energy and Strata-X has since merged to form Pure Hydrogen Corporation Ltd. Pure Hydrogen Corporation on the 23rd of June provided the - [Ignite Ideas Fund - Round 9 Now Open to QLD Businesses](https://www.swansonreed.com.au/ignite-ideas-fund-round-9-now-open-to-qld-businesses/) - The QLD government has announced that round 9 of the Ignite Ideas funding is available to commercialise highly innovative and new products or services that are at minimum viable product stage or beyond. The Ignite Ideas Fund is designed to support Queensland based small to medium businesses that have high-growth potential to undertake commercialisation projects that - [R&D Tax Incentive – Reminder of Key Points Before 30 June](https://www.swansonreed.com.au/rd-tax-incentive-reminder-of-key-points-before-30-june/) - Companies planning registration of R&D activities in the FY22 period (for the YE 30 June 2022) should be mindful of the following before the upcoming end of the financial year: Findings for overseas activities: Companies seeking to claim expenditure for overseas activity in their FY22 R&D claims must apply to claim these costs by lodging - [Paradigm Biopharmaceuticals (ASX:PAR) Received $8.2m R&D Tax Refund](https://www.swansonreed.com.au/paradigm-biopharmaceuticals-asxpar-received-8-2m-rd-tax-refund/) - Melbourne based Paradigm Biopharmaceuticals has reported receipt of a $8.2 million research and development tax incentive refund for the YE 30 June 2021 relating to ongoing R&D activities into its pentosan polysulfate sodium treatment. The company has advised that the funds will be reinvested in R&D activities and to support its global Phase 3 and - [Media Coverage of Change in Government Implications for the R&D Tax Incentive](https://www.swansonreed.com.au/media-coverage-of-change-in-government-implications-for-the-rd-tax-incentive/) - Going into the federal election held on 21 May 2022, it was not expected that the R&D Tax Incentive was to be impacted (in the short term at least), and there were not any announcements during the campaign that have been R&D tax specific. This was so, since recent legislative amendments to the R&D Tax - [ATO Release 2022 R&D Schedule Including Changes](https://www.swansonreed.com.au/ato-release-2022-rd-schedule-including-changes/) - R&D claims for the YE 30 June 2022 involve a number of changes from prior years, reflective of the legislative amendments arising in the October 2020 budget. These amendments change the mechanisms for calculation and reporting of R&D tax offsets to the ATO, which also presents the need for corresponding changes in the company tax - [ATO Debts on Hold Will Again be Used to Offset Tax Refunds or Credits Starting June](https://www.swansonreed.com.au/ato-debts-on-hold-will-again-be-used-to-offset-tax-refunds-or-credits-starting-june/) - Accountants Daily have reported an ATO announcement that ‘debts on hold’ will again be used to offset tax refunds or credits starting next month. A non-pursued debt is a debt that has been placed on hold and is not visible on the balance of a taxpayer account. When a debt is placed on hold, the - [State of R&D Tax Policy Heading into Federal Election](https://www.swansonreed.com.au/state-of-rd-tax-policy-heading-into-federal-election/) - The federal election is due to be held Saturday, 21 May 2022. Thankfully, after years of instability and uncertainty, it is not expected that the R&D Tax Incentive will be impacted by the upcoming election campaign (in the short term at least), and there have not been any R&D Tax specific announcements. This is the - [Proposed $20B R&D tax exclusions supported](https://www.swansonreed.com.au/proposed-20b-rd-tax-exclusions-supported/) - On 5 December 2013 the Senate referred the Tax Laws Amendment (Research and Development) Bill 2013 to the Senate Economics Legislation Committee for inquiry and report. The Economics Legislative Committee inquiries allow interested parties to submit their views on the proposed changes. The deadline for submitting was 22 January 2014. There was an overwhelming response - [Taxation Ruling: TR 2013/3A1 - Addendum](https://www.swansonreed.com.au/taxation-ruling-tr-20133a1-addendum/) - Summary of 104 106 689 matter Taxation Ruling - TR2013/3 Click Here GHP 104 160 689 Pty Ltd v. Commissioner of Taxation Click Here Decision Impact Statement - GHP 104 160 689 Pty Ltd Click Here *This must be read in conjunction with the original Taxation Ruling - TR2013/3 Following the AAT decision in GHP - [ATO ID 2015/4 Income tax: Research and Development: Disposal of research and development results](https://www.swansonreed.com.au/disposal-of-research-and-development-results/) - Does the R&D disposal of results provision in section 355-410 of the Income Tax Assessment Act 1997 (ITAA 1997) contemplate apportioning an amount received by an R&D entity where the amount comprises of payment for results from research and development (R&D) and non-R&D activities? Yes. Section 355-410 of the ITAA 1997 is only concerned with bringing to - [AusIndustry Conducting Briefing Session to Provide an Overview of the Refreshed Software Guidance](https://www.swansonreed.com.au/ausindustry-conducting-briefing-session-to-provide-an-overview-of-the-refreshed-software-guidance/) - In April 2022, AusIndustry released a new guidance document titled "Software-related activities and the Research and Development (R&D) Tax Incentive". Whilst nothing in the new guidance is particularly surprising, there are some new principles which do not seem to have been explored in other guidance documents published in recent years. AusIndustry have planned briefing sessions - [Digital Games Tax Offset - Draft Released Including Clarification of Interaction with R&D Tax Incentive](https://www.swansonreed.com.au/digital-games-tax-offset-draft-released-including-clarification-of-interaction-with-rd-tax-incentive/) - Originally announced last federal budget was a refundable offset for digital games, to strengthen the digital games industry and develop local capability. Last month, the treasury published the Exposure Draft Explanatory Materials. The Digital Games Tax Offset (DGTO) proposes to insert a new division into the ITAA 1997 to provide a 30% refundable tax offset - [Statutory Deadline for FY21 R&D Claims is This Week](https://www.swansonreed.com.au/statutory-deadline-for-fy21-rd-claims-is-this-week/) - Companies seeking to register R&D activities conducted during the Year Ended 30 June 2021 (companies that have a standard YE for tax) who are yet to do so should note that the registration deadline is 10 months after YE, being 30 APRIL 2022. The blanket and automatic extensions granted during the COVID-19 pandemic do not - [Updated Regulations and Principles for the R&D Tax Incentive](https://www.swansonreed.com.au/updated-regulations-and-principles-for-the-rd-tax-incentive/) - Administration of the R&D Tax Incentive is undertaken in accordance with the Industry Research and Development Act 1986. The Australian Government has made new versions of 2 legislative instruments under this Act: Industry Research and Development Regulations Industry Research and Development Decision-making Principles The previous versions of these instruments had sunset clauses that were due - [AusIndustry Release New Software Guidance Titled "Software-Related Activities and the Research and Development (R&D) Tax Incentive"](https://www.swansonreed.com.au/ausindustry-release-new-software-guidance-titled-software-related-activities-and-the-research-and-development-rd-tax-incentive/) - In April 2022, AusIndustry released a new guidance document titled "Software-Related Activities and the Research and Development (R&D) Tax Incentive". The release of this document follows previous guidance in recent years, along with some controversies for software-development R&D activity that saw: A number of well publicised disputes; Reports of some disputes being settled; Calls by - [Board of Taxation Review of the R&D Tax Incentive Recommends No Major Changes](https://www.swansonreed.com.au/board-of-taxation-review-of-the-rd-tax-incentive-recommends-no-major-changes/) - In the previous federal budget handed down in May 2021, the government announced that the Board of Taxation (Board) would undertake a review to evaluate the dual‑agency administration model for the Research and Development Tax Incentive (R&DTI). The Board was requested to evaluate the R&DTI dual agency administration model, with a view to identifying opportunities - [Federal Budget March 2022 - R&D Tax Incentive Update (no major changes, thankfully!)](https://www.swansonreed.com.au/federal-budget-march-2022-rd-tax-incentive-update-no-major-changes-thankfully/) - Leading into the May 2021 and March 2022 budgets, there were no anticipated changes proposed to the R&D Tax Incentive, since the previously announced changes for FY22 had only recently been legislated and commenced. Based on a preliminary review of the 2022 budget material, no material changes seem to have been proposed to the R&D - [AusIndustry Bulletin - March 2022 and Pending FY21 Deadline](https://www.swansonreed.com.au/ausindustry-bulletin-march-2022-and-pending-fy21-deadline/) - Companies seeking to register R&D activities conducted during the year ended 30 June 2021 (companies that have a standard YE for tax) who are yet to do so should note that the registration deadline is 10 months after YE, on 30 APRIL 2022. The blanket and automatic extensions granted due to the COVID-19 pandemic do - [Statutory Deadline for FY21 R&D Claims is Next Month](https://www.swansonreed.com.au/statutory-deadline-for-fy21-rd-claims-is-next-month/) - Companies seeking to register R&D activities conducted during the Year Ended 30 June 2021 (companies that have a standard YE for tax) who are yet to do so should note that the registration deadline is 10 Months after YE, 30 April 2022. The blanket and automatic extensions granted during COVID do not apply any longer - [Federal Budget in March 2022 - R&D Tax Incentive is Again Not Likely to be a Focus…(Hopefully)](https://www.swansonreed.com.au/federal-budget-in-march-2022-rd-tax-incentive-is-again-not-likely-to-be-a-focushopefully/) - The 2022 Federal Budget is due to be held in March 2022, which is earlier than the usual May timing, due to this year's election. In the belated federal budget handed down in October 2020 (delayed due to COVID), reforms to the R&D Tax Incentive were a centrepiece. Leading up to the 2020 budget, the - [Extension of Temporary Full Expensing Provisions to 30 June 2023 and Applicability to R&D Assets](https://www.swansonreed.com.au/extension-of-temporary-full-expensing-provisions-to-30-june-2023-and-applicability-to-rd-assets/) - In the October 2020 budget, the Government introduced and augmented stimulus measures to encourage investment and allow eligible businesses to claim an immediate deduction for the cost of an asset in the year the asset is first incurred. This included measures for Temporary Full Expensing (TFE) of assets that an entity first acquires/installs between 7:30pm - [Swanson Reed's R&D Tax Update Videos: March 2022](https://www.swansonreed.com.au/swanson-reeds-rd-tax-update-videos-march-2022/) - Swanson Reed has made available on our website a series of new videos, updated in March 2022, covering recent developments in the R&D Tax Incentive. The videos within our series seek to explain key guidance publications and principles used by the ATO and AusIndustry during their compliance assessments, as well as an overview of recent - [Airtasker Provide R&D Tax Update in Half Year Dec 2021 Results: Dispute Resolved](https://www.swansonreed.com.au/airtasker-provide-rd-tax-update-in-half-year-dec-2021-results-dispute-resolved/) - Airtasker has previously been associated with the “compliance crackdown” on R&D Tax Incentive claims, particularly for software, after reports emerged in December 2018 that the company’s prior year claims were being disputed following ATO review. Airtasker’s dispute came around the time of other reported R&D tax disputes whereby companies such as CBA and Newcrest made - [Med and Bio Tech Patent Box Bill Introduced to Parliament](https://www.swansonreed.com.au/med-and-bio-tech-patent-box-bill-introduced-to-parliament/) - The Australian Government first announced that it will introduce a patent box for eligible income associated with new patents in the medical and biotechnology sectors in the May 2021 federal budget. The legislation to enact this was introduced to the lower house in February, but with very few Senate sitting days left before the federal - [Senate Committee Manufacturing Industry Inquiry Recommends Periodic Review of R&D, Commercialisation, and Investment Incentives](https://www.swansonreed.com.au/senate-committee-manufacturing-industry-inquiry-recommends-periodic-review-of-rd-commercialisation-and-investment-incentives/) - The Senate Economics Committee has this week released its report of inquiry into the Australian manufacturing industry. The terms of reference of the inquiry included review of the role that government can play in assisting domestic manufacturing industry, with regard to research and development and other factors. Notable statistics from the report include: Australian investment - [Government Announces $2 Billion Research Commercialisation Action Plan Leading into Election Campaign](https://www.swansonreed.com.au/government-announces-2-billion-research-commercialisation-action-plan-leading-into-election-campaign/) - A federal election is due to occur by May 2022. Thankfully, after years of instability and uncertainty, it is not expected that the R&D Tax Incentive will be impacted by the upcoming election campaign (in the short term at least). This is the case, since recent legislative amendments to the R&D Tax Incentive have only - [AusIndustry Consultation Sessions Over the Coming Months](https://www.swansonreed.com.au/ausindustry-consultation-sessions-over-the-coming-months/) - AusIndustry have announced that over the coming quarter, they are conducting a series of events linked to R&D Tax Incentive (R&DTI) Programme developments and guidance documents. The sessions include: Guide to the R&D Tax Incentive; R&DTI Guide to Interpretation (covering the content in the recently re-released version); Guide to accessing the R&DTI customer portal (covering - [Draft AusIndustry Determination on Clinical Trials (Phase 0-III) for an Unapproved Therapeutic Good](https://www.swansonreed.com.au/draft-ausindustry-determination-on-clinical-trials-phase-0-iii-for-an-unapproved-therapeutic-good/) - AusIndustry has recently released a draft Industry Research and Development (clinical trials, Phase 0, I, II, III for an unapproved therapeutic good) Determination 2021 for consultation and feedback. This is the first R&D Tax Incentive determination published, and AusIndustry noted that they have consulted with the Australian Taxation Office and Department of Health as part - [ATO Release Finalised Tax Ruling TR 2021/9 (Adjustments to R&D Claims for Job Keeper)](https://www.swansonreed.com.au/ato-release-finalised-tax-ruling-tr-2021-9-adjustments-to-rd-claims-for-job-keeper/) - 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: The "at-risk" rule applies to R&D salaries reimbursed - [Imugene Ltd receives $6.5M R&D Tax Offset Refund](https://www.swansonreed.com.au/imugene-ltd-receives-6-5m-rd-tax-offset-refund/) - Melbourne-based Imugene Ltd announced in January 2022 the receipt of the company's FY21 R&D Tax Offset refund of $6,541,921. The company has noted that the funds will support its commercial and clinical milestones, several of which have progressed in recent months, including: Granting of additional patents for the company's HER-Vaxx Immunotherapy in China and South - [R&D Tax Incentive 2021 Year in Review](https://www.swansonreed.com.au/rd-tax-incentive-2021-year-in-review/) - The 2021 calendar year has again been busy for the R&D Tax Incentive. Key developments this year have included: ANAO report: A report from the Australian National Audit Office (ANAO), released in November, found that the R&D Tax Incentive programme’s dual administrators (being 1: The Department of Industry, Science, Energy and Resources and 2: The - [ATO Indicate Returns Lodged On or After 17 December 2021 are Less Likely to be Finalised Before Christmas Closure](https://www.swansonreed.com.au/ato-indicate-returns-lodged-on-or-after-17-december-2021-are-less-likely-to-be-finalised-before-christmas-closure/) - The ATO have announced it will close for Christmas at midday Friday, 24 December 2021 and reopen on Tuesday, 4 January 2022. The ATO have also noted in a statement quoted on AccountantsDaily that returns or activity statements lodged on or after 17 December 2021 are less likely to be finalized before the closure. Companies planning forthcoming lodgment of - [$280M Funding Announced for Round 2 of the Modern Manufacturing Initiative](https://www.swansonreed.com.au/280m-funding-announced-for-round-2-of-the-modern-manufacturing-initiative/) - The Government has today announced $280 million in funding available through Round 2 of the Integration and Translation Streams of the $1.3 billion Modern Manufacturing Initiative (MMI). Applications will soon open for businesses in the six National Manufacturing Priority Areas: Space; Medical Products; Resources Technology and Critical Minerals Processing; Food and Beverage; Recycling and - [Accessing R&D Funding: Government Grant’s vs. the Tax System](https://www.swansonreed.com.au/accessing-rd-funding-government-grants-vs-tax-system/) - In Australia, there are two main types of government funds available for technology or product advancement. These funding mechanisms are either administrated through a grant-based system or through tax breaks, such as the Research and Development (R&D) Tax Incentive. However, where support for R&D is called for, an important question remains: should reliance by - [Australian National Audit Office Report Recommendations from Review of R&D Tax Incentive's Administration](https://www.swansonreed.com.au/australian-national-audit-office-report-recommendations-from-review-of-rd-tax-incentives-administration/) - The Australian National Audit Office (ANAO)’s purpose is to support accountability and transparency in the Australian Government sector through independent reporting to the Parliament, and thereby contribute to improved public sector performance. Changes to the R&D Tax Incentive administration announced by the Government in the May 2018 budget included: additional funding for improved guidance and litigation; - [New AAT case affirms structure where business operating as a trust and notionally invoicing R&D costs to associate company is NOT valid](https://www.swansonreed.com.au/new-aat-case-affirms-structure-where-business-operating-as-a-trust-and-notionally-invoicing-rd-costs-to-associate-company-is-not-valid/) - An AAT Case in November 2021 (XQDX v FC of T) has affirmed that a structure where a business operating as a trust and notionally invoicing R&D costs to associate company is NOT valid for the purposes of the R&D Tax Incentive. The facts were broadly as follows: The Applicant (a company and the claimed - [Strike Energy (ASX:STX) Reports Receipt of $8M R&D Tax Offset in FY21 Annual Report Following Dispute Settlement](https://www.swansonreed.com.au/strike-energy-asxstx-reports-receipt-of-8m-rd-tax-offset-in-fy21-annual-report-following-dispute-settlement/) - Strike Energy previously disclosed R&D Tax Offsets in dispute with Innovation & Science Australia (ISA) in respect of the FY16 period of $6,333,638 which also had subsequent implications on R&D Tax Offsets in the FY17 period of $3,697,000. Subsequent announcements to the ASX in following initial disclosure of the dispute indicated that: The matter was - [Recent 10 Year Anniversary of the Current R&D Tax Incentive](https://www.swansonreed.com.au/recent-10-year-anniversary-of-the-current-rd-tax-incentive/) - The R&D Tax Incentive in its current form (superseding the previous R&D Tax Concession) was originally enacted in September 2011, applying for the FY12 period. AusIndustry has recently posted on its website some success stories of Australian companies making effective use of the programme, including: Vaxxas – bringing the world new needle-free vaccine technology; RayGen - [Telix Pharmaceuticals Achieves Successful Australian TGA Approval for Prostate Cancer Imaging](https://www.swansonreed.com.au/telix-pharmaceuticals-reports-receipt-of-11-4m-refundable-rd-tax-offset-2/) - Melbourne-based Telix Pharmaceuticals Ltd has today reported the receipt of approval from the Australian TGA for its prostate cancer imaging product, Illuccix. Iluccix, after radiolabeling with gallium-68, is the first commercially approved PSMA-PET imaging agent available in Australia. Telix Pharmaceuticals has noted that the TGA approval was an important milestone as it looks to make - [R&D Tax Registrations - Upcoming Deadlines](https://www.swansonreed.com.au/rd-tax-registrations-upcoming-deadlines/) - Companies seeking to register R&D activities conducted during the Year Ended 31 December 2020 (companies that have a December YE for tax) who are yet to do so should note that the registration deadline is the end of October 2021. The blanket and automatic extensions granted during COVID no longer apply, and the statutory deadlines - [ATO Release Decision Impact Statement on Auctus Resources Pty Ltd Case (Administrative Recovery of R&D Offset )](https://www.swansonreed.com.au/ato-release-decision-impact-statement-on-auctus-resources-pty-ltd-case-administrative-recovery-of-rd-offset/) - Background On 12 October 2021 the ATO issued a Decision Impact Statement relating to the decision handed down by the Full Federal Court in Auctus Resources Pty Ltd v Commissioner of Taxation [2020] FCA 1096. The case involved a ‘self-assessed’ claim for an R&D tax offset refund of $2,269,336 made by Auctus Resources Pty Ltd - [R&D Asset Temporary Full Expensing Considerations and ATO Guidance](https://www.swansonreed.com.au/rd-asset-temporary-full-expensing-considerations-and-ato-guidance/) - A significant (but temporary) change to operation of the R&D Tax Incentive for expenditure on tangible depreciating assets used in R&D activity came into effect during FY21. Historically, and prior to FY21: The capital cost of a tangible depreciating asset is not eligible as R&D expenditure; A company is able to claim the decline - [Industry Portfolio to be Shared by Two Cabinet Ministers](https://www.swansonreed.com.au/industry-portfolio-to-be-shared-by-two-cabinet-ministers/) - The Government announced the resignation of Christian Porter from the Industry portfolio in September 2021 after approximately 6 months in the role. Energy Minister Angus Taylor was then appointed acting Industry Minister following the departure of Christian Porter. The Government has now announced that the industry portfolio will be shared, with Defence Industry Minister Melissa Price - [Australian Based Immunetep Ltd (ASX:IMM) receives $3.4M AUD in French R&D Tax Incentives](https://www.swansonreed.com.au/australian-based-immunetep-ltd-asximm-receives-3-4m-aud-in-french-rd-tax-incentives/) - ASX listed, Sydney based company Immunetep Ltd recently announced that it has received a €2,126,617 (around A$3,400,000) payment in cash from the French Government under its Crédit d’Impôt Recherche scheme (CIR). A similar magnitude payment was received in the previous year. The payment relates to activity the company is conducting in Paris to develop its - [Industry Minister Resignation and Appointment of Caretaker](https://www.swansonreed.com.au/industry-minister-resignation-and-appointment-of-caretaker/) - Over the weekend, the Government announced the resignation of Christian Porter from the industry portfolio after approximately six months in the role. Energy Minister Angus Taylor will serve as acting Industry Minister for the time being. The industry portfolio has responsibility for the R&D Tax Incentive, and the programme is one of the largest budgetary - [Promoters of Tax Avoidance Schemes Remain a Target of ATO’s Tax Avoidance Taskforce](https://www.swansonreed.com.au/promoters-of-tax-avoidance-schemes-remain-a-target-of-atos-tax-avoidance-taskforce/) - The ATO recently released a report titled Tax Avoidance Taskforce highlights 2020-21. The report has highlighted that: Activity over the past year achieved favourable promoter penalty outcomes in two Federal Court applications following investigations by the taskforce's Promoters and Tax Exploitation Program, one of which involved exploitation of the R&D Tax Incentive; The ATO's focus - [Government and Opposition Comments on New ABS Report on BERD](https://www.swansonreed.com.au/government-and-opposition-comments-on-new-abs-report-on-berd/) - InnovationAus has cited a new ABS report finding that business expenditure on R&D (BERD) was $18.17 billion in 2019-20, slightly below the $18.32 billion that businesses spent in 2011-12 at today’s prices. The article included comments from recently appointed Industry Minister, Christian Porter, noting that: “The increase in business expenditure on research and development of - [New AusIndustry Guidance Released on Software Development](https://www.swansonreed.com.au/new-ausindustry-guidance-released-on-software-development/) - AusIndustry have released two additional guidance documents particularly relevant to claimants conducting software development R&D activities: Software activities and the R&D Tax Incentive; Guide to Common Errors; This guidance has been released following earlier material from AusIndustry indicating concerns over inappropriate claims for Software Activities, and reports in the media of large software development R&D claims - [Consultation Around Sunsetting and Amendments to IR&D Decision-Making Principles and Regulations](https://www.swansonreed.com.au/consultation-around-sunsetting-and-amendments-to-ird-decision-making-principles-and-regulations/) - - The Industry Research and Development Act 1986 supports the administration of the Research and Development Tax Incentive. Two legislative instruments under the act are scheduled to sunset on 1 April 2022: Industry Research and Development Decision-making Principles (Decision-making Principles) Industry Research and Development Regulations (Regulations) - These principles and regulations contain rules around: Processes - [Imdex Ltd posts strong FY21 result leveraging R&D Investment](https://www.swansonreed.com.au/imdex-ltd-posts-strong-fy21-result-leveraging-rd-investment/) - Imdex Limited (ASX: IMD) is a WA-based company providing technology and equipment for the mining industry. The company offers a range of products and services, including: Drilling optimisation products; Rock knowledge sensors; Real time data and analytics solutions; Imdex Limited's FY21 results were well received by the ASX, and concludes a year in which the company's - [Swanson Reed in InnovationAus Article on state of R&D Tax Compliance](https://www.swansonreed.com.au/swanson-reed-in-innovationaus-article-on-state-of-rd-tax-compliance/) - InnovationAus has this week published an article including comments from Swanson Reed regarding the state of R&D tax compliance, particularly for projects involving software development activity. The article comes following a turbulent period in the R&D Tax Incentive, including: Multiple proposed and eventually passed amendments to the legislation underpinning the R&D Tax Incentive; A widely - [Airtasker Provide R&D Tax Update in FY21 results: Some years remain in dispute, have continued to register for subsequent years](https://www.swansonreed.com.au/airtasker-provide-rd-tax-update-in-fy21-results-some-years-remain-in-dispute-have-continued-to-register-for-subsequent-years/) - Airtasker has previously been associated with the “compliance crackdown” on R&D Tax Incentive claims, particularly for software, after reports emerged in December 2018 that the company’s prior year claims were being disputed following ATO review. Airtasker’s dispute came around the time of other reported R&D tax disputes whereby companies such as CBA and Newcrest made - [NSW State Government Offers R&D Fund and New Tech Vouchers](https://www.swansonreed.com.au/nsw-state-government-offers-rd-fund-and-new-tech-vouchers/) - The NSW State Government has recently announced new initiatives relevant to companies conducting R&D activity: A $6 million R&D fund will target innovative products that have been developed by NSW businesses. Proposals to scale R&D products will be assessed by a panel of judges with expertise in commercialisation, venture capital, academia, government and industry; A - [Swanson Reed in August Tax Institute Journal](https://www.swansonreed.com.au/swanson-reed-journal-article-in-august-tax-institute-journal/) - A feature article by Swanson Reed is included in the August 2021 volume of The Tax Institute's Taxation in Australia. Swanson Reed's article covers the legislative passage of the recent changes to the R&D tax law, along with a technical analysis of the amendments. Taxation in Australia is continually ranked as Australia's leading tax journal - [Publication of Claimant Data under R&D Tax Amendments](https://www.swansonreed.com.au/publication-of-claimant-data-under-rd-tax-amendments/) - Under the legislative amendments to the R&D tax legislation passed in 2020, a new administration measure was enacted relating to the publication of claimant data. The intention of the change was to enhance the transparency of the R&D tax incentive, and align it with other programmes where details of recipients of public support are noted - [Fintech Australia Submission Discusses Application of R&D Tax Incentive to Software](https://www.swansonreed.com.au/fintech-australia-submission-discusses-application-of-rd-tax-incentive-to-software/) - InnovationAus this week has reported on concerns raised by advocacy group Fintech Australia in respect of the application of the R&D Tax Incentive to software activity. The concerns were raised in the group’s submission to the Select Committee on Australia as a Technology and Financial Centre, and a summary of points raised include: concern that regulators’ - [Government Discussion Paper and Consultation on Patent Box for Medical and Biotechnology Sectors](https://www.swansonreed.com.au/government-discussion-paper-and-consultation-on-patent-box-for-medical-and-biotechnology-sectors/) - In the May federal budget, the Australian Government announced that it will introduce a patent box for eligible income associated with new patents in the medical and biotechnology sectors. The patent box will apply to companies for income years commencing on or after 1 July 2022, and for new Australian patents since budget night. - [Board of Taxation Review to Evaluate the Dual-Agency Administration Model for the Research and Development Tax Incentive](https://www.swansonreed.com.au/board-of-taxation-review-to-evaluate-the-dual-agency-administration-model-for-the-research-and-development-tax-incentive/) - Australia’s R&D tax incentive program is dually administered by two government agencies: AusIndustry (on behalf of Industry Innovation and Science Australia): registers R&D activities disclosed in applications lodged with the agency. AusIndustry has authority to make findings on eligibility of activities. The Australian Taxation Office (ATO): administers R&D tax offset entitlements disclosed in company income - [FY21 R&D Registrations Now Open](https://www.swansonreed.com.au/fy21-rd-registrations-now-open/) - Companies are now able to register R&D activities with AusIndustry for the year ended 30 June 2021 (FY21). For the FY21 period, the application process is now administered through the new online customer portal which has presented a number of changes over the previous processes, including: The need for the company director to have established - [ATO Release New Draft Tax Ruling TR 2021/D3 (R&D Tax Offsets: The At Risk Rule)](https://www.swansonreed.com.au/ato-release-new-draft-tax-ruling-tr-2021-d3-rd-tax-offsets-the-at-risk-rule/) - Under SECT 355.405 ITAA97, an entity cannot claim R&D expenditure in situations where: (a) when an entity incurs R&D expenditure, consideration had been received, or was reasonably expected to be received: as a direct or indirect result of the expenditure being incurred; and regardless of the results of the activities on which the expenditure is - [How the R&D Tax Incentive Tax Offset Works, Interaction with Tax Position and Summary of Changes:](https://www.swansonreed.com.au/rd-tax-offset/) - The R&D tax incentive operating from FY12 entitles companies to tax offsets for eligible expenditure on registered R&D activities, in exchange for tax deductions on the expenditure. The Incentive introduced the concept of a notional deduction, since eligible expenditure notionally determines R&D tax offsets, but any entitlement to a tax deduction is foregone. The forfeiture - [Swanson Reed on TWISTA (This Week in Startups Australia) Podcast with Mark Pesce](https://www.swansonreed.com.au/swanson-reed-on-twista-this-week-in-startups-australia-podcast-with-mark-pesce/) - Swanson Reed has appeared on this week’s episode of the TWISTA (This Week in Startups Australia) Podcast with Mark Pesce. Topics covered include key documentation requirements for claimants of the R&D Tax Incentive and important planning measures leading up to 30 June. TWISTA is an Australian-focused podcast series seeking to help startups thrive, with interviews - [Northern Minerals Ltd Receives $8.7M FY20 R&D Tax Refund Following Resolution of Prior Year Disputes](https://www.swansonreed.com.au/northern-minerals-ltd-receives-8-7m-fy20-rd-tax-refund-following-resolution-of-prior-year-disputes/) - Northern Minerals Ltd was one of the most high profile R&D tax disputes reported at the height of the R&D tax incentive compliance "crackdown" period. The company reported a significant liability in respect of regulators seeking repayment of disputed R&D tax offsets; It was subsequently reported in August 2020 that the company had settled the - [PWK and ISA: AAT Finds in Favour of R&D Entity Over Disputed Activity Eligibility](https://www.swansonreed.com.au/pwk-and-isa-aat-finds-in-favour-of-rd-entity-over-disputed-activity-eligibility/) - A recent AAT case (PKWK and Innovation and Science Australia (Taxation) [2021] AATA 706 (24 March 2021)) has found in favour of the R&D entity in a dispute over eligibility. The dispute related to a registration of activities for the financial year ended 30 June 2015 in respect of a registration for the following: Core Activity 1.1: - [Observations from new online R&D Tax Incentive customer portal](https://www.swansonreed.com.au/observations-from-new-online-rd-tax-incentive-customer-portal/) - Over recent weeks AusIndustry launched their new, online R&D Tax Incentive customer portal which replaces the old PDF Smartform Lodgement system. AusIndustry are mandating that all FY21 R&D Applications are lodged via this new online system, which commences accepting lodgements from Monday 5 July, 2021. There are significant changes from the old system (both in - [AusIndustry Release Draft of New Software Guidance for Consultation](https://www.swansonreed.com.au/ausindustry-release-draft-of-new-software-guidance-for-consultation/) - AusIndustry have recently circulated a draft of new guidance on the eligilbity of software development activity under the R&D tax incentive. The guidance does not appear to materially differ from the principles of eligibility in other guidance documents published in recent years. Whilst the eligibility of software R&D activity was certainly scrutinised, particularly during the period - [New AusIndustry Reporting Requirements and Applicant Lodgement Portal](https://www.swansonreed.com.au/new-ausindustry-reporting-requirements-and-applicant-lodgement-portal/) - The changes to the R&D tax incentive announced in the October 2020 budget have been passed as law, but do not become effective until 1 July 2021 (FY22). Companies registering activity for the financial year about to end (FY21) will do so under the same legislation in place as in prior years. However, some significant - [Federal Budget 11 May 2021 - R&D Tax Incentive Update](https://www.swansonreed.com.au/federal-budget-11-may-2021-rd-tax-incentive-update/) - For multiple years leading into the prior federal budget in 2020, the Government attempted to pass controversial measures aimed at reducing the cost of the R&D Tax Incentive, which had stalled in the senate and were not legislated. When the October 2020 Federal Budget (delayed due to COVID) was handed down, business was pleasantly surprised. - [Federal Budget 2021 - R&D Tax Incentive Not Likely to be a Focus…(Hopefully)](https://www.swansonreed.com.au/federal-budget-2021-rd-tax-incentive-not-likely-to-be-a-focushopefully/) - In the belated federal Budget handed down in October 2020 (delayed due to COVID), reforms to the R&D Tax Incentive were a centrepiece. Leading up to the 2020 budget, the government was proposing substantial changes to the R&D Tax Incentive which were aimed at reducing the cost of the programme, but that had not yet - [Senate Committee Calls for Quarterly RDTI Payments](https://www.swansonreed.com.au/senate-committee-calls-for-quarterly-rdti-payments/) - InnovationAus has reported that a government-led Senate committee chaired by Liberal Senator Andrew Bragg has called for R&D Tax Offsets to be paid quarterly, and for a new standalone scheme for software-related claims to be considered. The report included notable quotes: “The committee is recommending that different assessment methodologies be allowed under the RDTI scheme, - [Direct Incentives are Needed to Improve Australia's Research Commercialisation, and the Post-Covid Economy](https://www.swansonreed.com.au/direct-incentives-are-needed-to-improve-australias-research-commercialisation-and-the-post-covid-economy/) - The black box flight recorder, Polymer bank notes, Wi-Fi technology and cochlear implants - they're all Australian inventions. To keep these developments coming, and improve our research and innovation, we need direct investment through university innovation and small business incentives. Right now, Australia's indirect incentives - specifically the R&D Tax Incentive - are providing 86% - [Neutral Tax Policies Might Provide More Supportive Environments for Innovation than R&D and Patent Tax Incentives](https://www.swansonreed.com.au/neutral-tax-policies-might-provide-more-supportive-environments-for-innovation-than-rd-and-patent-incentives/) - R&D Tax Incentives, like we have in Australia, are intended to drive innovation, and thus productivity and value in the global economy. By reducing the tax costs of those investments, policymakers believe that companies have an added reason to take risks to perform innovation that they may not typically take. However, not every country has - [ATO Announces That "Collaborative Workshop Will Be Conducted Shortly" In Respect Of Software R&D Activity](https://www.swansonreed.com.au/ato-announces-that-collaborative-workshop-will-be-conducted-shortly-in-respect-of-software-rd-activity/) - The AFR reported earlier in the year that leading technology companies (including Atlassian, Airtasker, Canva and Deputy, among others) had sent a letter to the ATO offering to convene a workshop with the ATO to “improve the understanding of software innovation in the tax office and, conversely, address any concerns the ATO has about software - [Federal Court Appeal Finds in Favour of ATO for Recovery of R&D Offset](https://www.swansonreed.com.au/federal-court-appeal-finds-in-favour-of-ato-for-recovery-of-rd-offset/) - On 19 March 2021, a decision in the appeal of The Federal Court case of Commissioner of Taxation v Auctus Resources Pty Ltd [2021] FCAFC 39 was handed down. In the preceding case, Auctus Resources Pty Ltd v Commissioner of Taxation [2020] FCA 1096, The Federal Court found that the ATO was not able to use s.8AAZN of the Tax Administration Act 1953 - [The Australian National Audit Office to Review Administration of R&D Tax Incentive](https://www.swansonreed.com.au/the-australian-national-audit-office-to-review-administration-of-rd-tax-incentive/) - InnovationAus has reported that The Australian National Audit Office (ANAO) is conducting an audit into the effectiveness of the Industry department and Australian Taxation Office’s administration of the research and development tax incentive (RDTI) program and is expected to table its report in October. Submissions are able to be made by stakeholders until May 2021. The - [AFR Reports Top Tech Companies Approach ATO Seeking a Meeting to Discuss Eligibility of Software R&D Activity](https://www.swansonreed.com.au/afr-reports-top-tech-companies-approach-ato-seeking-a-meeting-to-discuss-eligibility-of-software-rd-activity/) - The AFR has reported this week that leading technology companies (including Atlassian, Airtasker, Canva and Deputy, among others) have sent a letter to commissioner of taxation, Chris Jordan. The letter reportedly includes an offer to convene a workshop with the ATO to “improve the understanding of software innovation in the tax office and, conversely, address - [ATO and AusIndustry Joint Podcast on R&D Tax Incentive](https://www.swansonreed.com.au/ato-and-ausindustry-joint-podcast-on-rd-tax-incentive/) - AusIndustry and the ATO have published a joint podcast on business.gov.au this week, featuring Brett Challans (ATO) and Kelly Wiggins (DISER). The podcast discusses key R&D Tax Incentive issues relevant to each department, including: Eligible entities; The self-assessment process; Categories of ineligible expenditure; Records relevant to substantiating the R&D process through systematic progression of work - [Record Penalty Imposed for Promotion of Schemes Involving R&D Tax Incentive](https://www.swansonreed.com.au/record-penalty-imposed-for-promotion-of-schemes-involving-rd-tax-incentive/) - The Federal Court has imposed a record penalty of $22.68M on Mr Paul Enzo Bogiatto and his associated companies for a contravention of promoter penalty involving tax exploitation schemes relating to the R&D Tax Incentive between 2012 and 2015. Mr Bogiatto had previously been deregistered as a tax agent and member of Chartered Accountants Australia - [Australian Investment Council Proposes Relaunch of R&D Tax Incentive in May Budget](https://www.swansonreed.com.au/australian-investment-council-proposes-relaunch-of-rd-tax-incentive-in-may-budget/) - The Government’s annual federal budget is traditionally delivered during May each year, however in 2020 it was deferred until October due to COVID. When the 2020 budget was finally handed down, it provided welcome news for the R&D Tax Incentive, since previously proposed budget cuts were replaced with alternate changes providing additional R&D tax benefits - [H2O Exchange Pty Ltd v Innovation and Science Australia [2021] FCA 11 (22 January 2021)](https://www.swansonreed.com.au/h2o-exchange-pty-ltd-v-innovation-and-science-australia-2021-fca-11-22-january-2021/) - Introduction In October 2019 a decision was reached by the AAT in the matter of H2O Exchange Pty Ltd and Innovation and Science Australia. The matter related to dispute of a previous decision by Innovation and Science Australia (AusIndustry) finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative - [Lobbying for Enhancement to R&D Tax Incentive for Software Development Activity](https://www.swansonreed.com.au/lobbying-for-enhancement-to-rd-tax-incentive-for-software-development-activity/) - In September 2019, the Senate resolved to establish a Select Committee on Financial Technology and Regulatory Technology to inquire on a range of matters including “the effectiveness of current initiatives in promoting a positive environment for FinTech and RegTech start-ups”. This committee signifies that the government considers Fintech to be an industry of strategic importance. - [AFR Reports of Dispute Between R&D Entity and R&D Advisor for Liability Over Reversed R&D Claims](https://www.swansonreed.com.au/afr-reports-of-dispute-between-rd-entity-and-rd-advisor-for-liability-over-reversed-rd-claims/) - In early January 2021, the AFR published a story in respect of an Australian R&D Entity taking legal action against a large professional advisory firm in respect of allegations that its tax advice was below industry standards, not fit for purpose, and not undertaken with due care or diligence. The case specifically relates to R&D - [Monadelphous Successfully Challenges R&D Tax Dispute Following Conclusion of Internal Review](https://www.swansonreed.com.au/monadelphous-successfully-challenges-rd-tax-dispute-following-conclusion-of-internal-review/) - One of the most high profile R&D Tax disputes has been that of engineering contractor Monadelphous. In August 2019 Monadelphous recognised a $7 Million provision relating to repayment of R&D Claims for the FY15 and FY16 periods. The provision indicated that the underlying disputed R&D Activities may have R&D Expenditure of around $70 to $80 - [Significant Refundable R&D Offsets Receipts Reported to ASX, ATO Reviews Still Occurring](https://www.swansonreed.com.au/significant-refundable-rd-offsets-receipts-reported-to-asx-ato-reviews-still-occurring/) - Over recent months, a number of companies have reported to the ASX receipt of substantial Refundable R&D Offsets. Notable receipts include: Zelira Therapeutics’ receipt of $1.4 M in December for cannabis medicines;Imugene’s receipt of $4.82M in December for Immuno-oncology research activities;Agrimin’s receipt of $1.6M in December for development of a potash project;Anteotech’s receipt of $1.2M - [Australia's R&D Tax Incentive and Clinical Sector To Be Showcased During JP Morgan Week](https://www.swansonreed.com.au/australias-rd-tax-incentive-and-clinical-sector-to-be-showcased-during-jp-morgan-week/) - AusBiotech’s virtual showcase during JP Morgan week in January 2021 will seek to highlight the advantages of partnering with Australian life science companies and utilising the R&D Tax Incentive. Australia has become an attractive location for the conduct of clinical trials in recent years, based on local capability and infrastructure offering companies the ability to - [Independent Review of TPB Makes Reference to R&D Tax Practitioners](https://www.swansonreed.com.au/independent-review-of-tpb-makes-reference-to-rd-tax-practitioners/) - Regulation of the tax profession is the responsibility of the Tax Practitioners Board (TPB) which was formed following the Tax Agent Services Act 2009 (TASA)’s introduction. An independent review into the effectiveness of the TPB has been undertaken over recent years, and this week the final review report has been released, following earlier consultations and - [Commentary in Tax Institute’s TaxVine Journal calls for Stability to R&D Tax Incentive](https://www.swansonreed.com.au/commentary-in-tax-institutes-taxvine-journal-calls-for-stability-to-rd-tax-incentive/) - This week’s TaxVine Journal (the weekly publication of The Tax Institute) featured some commentary from Mariana von Lucken of HLB Mann Hudd, supportive of the Government’s budget announcements and echoing Swanson Reed’s previous calls for stability to the R&D Tax Incentive. Notable extracts from the writer’s observations and opinions in this week’s article include: “the - [Software development R&D activities affirmed as ineligible by AAT in Royal Wins Pty Ltd Vs Innovation and Science Australia [2020]](https://www.swansonreed.com.au/software-development-rd-activities-affirmed-as-ineligible-by-aat-in-royal-wins-pty-ltd-vs-innovation-and-science-australia-2020/) - A recent decision in the AAT has affirmed a previous decision by Innovation and Science Australia (AusIndustry) finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements. Royal Wins Pty Ltd and Innovation and Science Australia [2020] AATA 4320 (28 October 2020) was a dispute in respect of - [Updated Summary of Interaction Between Instant Asset Write-off, Temporary Full Expensing, and the R&D Tax Incentive](https://www.swansonreed.com.au/updated-summary-of-interaction-between-instant-asset-write-off-temporary-full-expensing-and-the-rd-tax-incentive/) - The Government has recently introduced and augmented stimulus measures to encourage investment and allow eligible businesses to claim an immediate deduction for the cost of an asset in the year the asset is first installed ready for use. This asset investment stimulus has taken the form of 2 programmes: Instant asset write-off provided for under - [AusIndustry Publish Redrafted Guide to Interpretation Document](https://www.swansonreed.com.au/ausindustry-publish-redrafted-guide-to-interpretation-document/) - AusIndustry’s original Guide to Interpretation was published in January 2016, and has been considered the primary document for detailing how AusIndustry interprets key elements of the definition of ‘R&D activities’ as defined in the legislation. Material from the Guide to Interpretation was often referred to be AusIndustry during compliance processes, and it detailed AusIndustry’s position on complex - [Opposition Comments on Government's Revised R&D Tax Reforms Passed From the Federal Budget](https://www.swansonreed.com.au/opposition-comments-on-governments-revised-rd-tax-reforms-passed-from-the-federal-budget/) - When the federal government announced in December 2019 that they would reintroduce their previous R&D Tax Reform bill with a proposed start date of July 2019 for FY20, it was met with widespread condemnation from industry leaders. The bill reintroduced at that time was largely focused on savings measures, and was a slightly modified version - [Real Energy Corporation Limited Provides Update on Status of Innovation Australia R&D Dispute](https://www.swansonreed.com.au/real-energy-corporation-limited-provides-update-on-status-of-innovation-australia-rd-dispute/) - Within its recent FY20 Annual Report posted to the ASX, Real Energy Corporation Limited (ASX: RLE) has provided an update on the status of the company's dispute with AusIndustry/ISA over the eligibility of its R&D Activities. The company had previously received an adverse finding for R&D Tax Registrations during the FY14, FY15 and FY16 periods, with corresponding tax offsets - [Procuring Quality R&D Tax Services, and Distinguishing From Those That "Maximise Your Claim and Ensure Compliance, But Are NOT Providing Tax Advice"](https://www.swansonreed.com.au/procuring-quality-rd-tax-services-and-distinguishing-from-those-that-maximise-your-claim-and-ensure-compliance-but-are-not-providing-tax-advice/) - Swanson Reed’s overall wish is to see a functional, broad based R&D Tax Regime that provides a generous, stable and predictable incentive for companies to conduct genuine R&D Activity. The Federal Government’s budget announcement last week backing away from proposed cuts to the programme was a step in the right direction. Our view is that - [R&D Tax Budget Reforms Applauded By Australian Industry Leaders](https://www.swansonreed.com.au/rd-tax-budget-reforms-applauded-by-australian-industry-leaders/) - When the federal government announced in December 2019 that they would reintroduce their R&D Tax Reform bill with a proposed start date of July 2019 for FY20, it was met with widespread condemnation from industry leaders. The reintroduced bill was a slightly modified version of a previous reform bill, which did not pass through the - [Federal Budget Update - R&D Tax Incentive a Winner](https://www.swansonreed.com.au/federal-budget-update-rd-tax-incentive-a-winner/) - Federal budgets under both major parties have not presented good news for the R&D Tax Incentive in recent years, with the flagship programme for encouraging business investment in R&D subjected to a series of proposed cuts via caps and rate reductions. This year’s budget has been a welcome change in the wake of the Government’s - [AFR reports that government will back down on R&D Tax budget reforms](https://www.swansonreed.com.au/afr-reports-that-government-will-back-down-on-rd-tax-budget-reforms/) - In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. This bill was a slightly modified version of a previous reform bill (Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018), which did not pass through the Senate at that time. - [New Opposition Party Statements on R&D Tax Policy](https://www.swansonreed.com.au/new-opposition-party-statements-on-rd-tax-policy/) - Labor Innovation Spokesperson Clare O’Neil has this week spoken to InnovationAus about the Opposition’s R&D Tax Incentive Policies. The article focused particularly on the Government's proposed reforms to the R&D Tax Incentive, which have been widely condemned by Industry Groups and are subject to a Senate Economics Committee review. Highlights from Clare O’Neil’s interview included: - [New Opposition Party statements on R&D Tax Policy](https://www.swansonreed.com.au/new-opposition-party-statements-on-rd-tax-policy-2/) - Labor Innovation Spokesperson Clare O’Neil has this week spoken to InnovationAus about the Opposition’s R&D Tax Incentive Policies. The article focused particularly on the Governments’ proposed reforms to the R&D Tax Incentive, which have been widely condemned by Industry Groups and are subject to a Senate Economics Committee review. Highlights from Clare O’Neil’s interview included: - [Accelerating the Commercialisation Process](https://www.swansonreed.com.au/accelerating-the-commercialisation-process/) - If you are an entrepreneur, inventor or business owner trying to take your unique intellectual property to market, one of the toughest challenges faced is the commercialisation process. Accelerating Commercialisation is a key offering under the Entrepreneurs’ Infrastructure Programme (EIP) and works through an Expression of Interest (EOI) process. The key objective is to promote - [StartupAus Continues R&D Tax Incentive Advocacy Ahead of Delayed Federal Budget](https://www.swansonreed.com.au/startupaus-continues-rd-tax-incentive-advocacy-ahead-of-delayed-federal-budget/) - The federal budget, traditionally in May each year was deferred by the government until 6 October 2020 due to COVID. In comments to Smartcompany.com.au, this week, StartupAus chief Alex McCauley has continued his strong advocacy for the R&D Tax Incentive. Key highlights of Alex's position include: This year's budget can be somewhat be considered as two budgets together, - [Northern Minerals Ltd Receives Balance of Previously Disputed R&D Tax Offset](https://www.swansonreed.com.au/northern-minerals-ltd-receives-balance-of-previously-disputed-rd-tax-offset/) - Northern Minerals Ltd had previously reported in May 2019 a significant liability in respect of R&D Tax Incentive claims for expenditure developing its Rare Earth processing capability. It was subsequently reported in August 2020 that the company had settled the dispute with the ATO relating to claims in the FY17 and FY18 periods, along with - [Strike Energy (ASX:STX) Announces R&D Tax Dispute Settlement and Pursuit of Subsequent Claims](https://www.swansonreed.com.au/strike-energy-asxstx-announces-rd-tax-dispute-settlement-and-pursuit-of-subsequent-claims/) - Strike Energy had previously disclosed R&D Tax Offsets in dispute with Innovation & Science Australia (ISA) in respect of the FY16 period of $6,333,638, which also had subsequent implications on R&D Tax Offsets in the FY17 period of $3,697,000. Announcements to the ASX in recent months indicated that: The matter was currently before the Administrative - [Digital Game Development Hub Planned For South Australia](https://www.swansonreed.com.au/digital-game-development-hub-planned-south-australia/) - A dedicated video game hub is to be set up in Adelaide over the next three years and will potentially generate 500 new jobs. The state government is granting $2 million to the project, much of which will go to the fit out, skill development and education programs and the production and marketing of Adelaide-built - [Government Grants vs the R&D Tax Incentive – What’s the Difference?](https://www.swansonreed.com.au/government-grants-vs-the-rd-tax-incentive-whats-the-difference/) - With three layers of government and approximately 700 business grants available, finding the specific grant that is suitable for you can be difficult. Thus, for small businesses approaching this buffet of choices, the task can be daunting. Moreover, tax incentives are generally lumped in the category of ‘grants and incentives’, making it hard to differentiate the differences - [Hadrian Fraval Nominees Pty Ltd and FCT [2013] AATA 127](https://www.swansonreed.com.au/hadrian-fraval-nominees-pty-ltd-and-fct-2013-aata-127/) - The Australian Taxation Office (ATO) recently drew specific attention to the case of Hadrian Fraval Nominees Pty Ltd v Commissioner of Taxation in its Large Business Bulletin released in September 2013. Facts The Tribunal affirmed the Commissioner’s decision that Hadrian Fraval Nominees Pty Ltd (HFN) was not entitled to claim the R&D Tax Concession for the 2004 year, - [Catapult Group Leverages R&D Investment to Report Strong Results During COVID Period](https://www.swansonreed.com.au/catapult-group-leverages-rd-investment-to-report-strong-results-during-covid-period/) - Catapult Group International Ltd has been one of the outstanding performers on the ASX over the past QTR, with the value of its shares having increased approximately fourfold from the depths of the COVID-19 Market Lows following the announcements of positive results and trading updates. Media coverage of NFL Training Camps and European football resumptions - [AusIndustry Consultation on Redrafting of Guide to Interpretation Document](https://www.swansonreed.com.au/ausindustry-consultation-on-redrafting-of-guide-to-interpretation-document/) - AusIndustry’s original Guide to Interpretation was published in January 2016, and has been considered the primary document for detailing how AusIndustry interprets key elements of the definition of ‘R&D activities’ as defined in the legislation. Material from the Guide to Interpretation was often referred to by AusIndustry during compliance processes, and it detailed AusIndustry’s position on - [Australian Heavy Rare Earths Producer, Northern Minerals Limited Converts Lind Debt into Equity; Settles R&D Tax Dispute with the ATO](https://www.swansonreed.com.au/australian-heavy-rare-earths-producer-northern-minerals-limited-converts-lind-debt-into-equity-settles-rd-tax-dispute-with-the-ato/) - Converts Lind Debt into Equity Australian heavy rare earths producer, Northern Minerals Limited, has issued 66,666,667 shares to a nominee of Lind Global Macro Fund, by converting $1.2 million worth of convertible security into ordinary shares. Resulting from this conversion, there are no amounts outstanding under the replacement convertible security. In accordance with the terms - [Tech Industry Leaders Petition to PM Lobbying Against R&D Tax Reforms](https://www.swansonreed.com.au/tech-industry-leaders-petition-to-pm-lobbying-against-rd-tax-reforms/) - Reports have emerged that the chiefs of Australia's leading technology companies collaborated in sending a joint letter to Prime Minister Scott Morrison on Friday. The letter was signed by leaders at Atlassian, Canva, Airwallex, Culture Amp, StartupAUS, Prospa, Freelancer, NextDC among others. The letter has expressed particular concerns regarding: Australian investment in research and development - [Argent Minerals (ASX:ARD) Announces Details of R&D Tax Dispute Settlement and Progression of Further Claims](https://www.swansonreed.com.au/argent-minerals-asxard-announces-details-of-rd-tax-dispute-settlement-and-progression-of-further-claims/) - Argent Minerals Limited has previously disclosed a liability in the company’s 2019 annual report for “R&D Claims repayable” of approximately $1.4M. This liability was in respect of R&D Tax Offsets for the FY16 and FY17 periods that AusIndustry had found related to ineligible activities. Argent Minerals Limited had, at the time reported that the company - [Reports That Senate R&D Tax Reform Inquiry Has Been Delayed Again](https://www.swansonreed.com.au/reports-that-senate-rd-tax-reform-inquiry-delayed-again/) - In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. This bill was a slightly modified version of a previous reform bill (Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018), which did not pass through the Senate at that time. - [Adjustments Required to R&D Claims for JobKeeper Payments - ATO Position Released](https://www.swansonreed.com.au/adjustments-required-to-rd-claims-for-jobkeeper-payments-ato-position-released/) - As had been anticipated, the ATO will be requiring adjustments to R&D claims that contain salaries reimbursed by the JobKeeper Scheme. Companies lodging FY20 R&D claims who have also received the JobKeeper stimulus must carefully review and adjust R&D claims where necessary. The basis of this need for adjustment is the ATO’s position that companies - [Australian National Audit Office To Audit The R&D Tax Incentive](https://www.swansonreed.com.au/australian-national-audit-office-to-audit-the-rd-tax-incentive/) - The Australian National Audit Office (ANAO) is set to undertake an audit of the government’s administration of the R&D Tax Incentive scheme this year. This will be the first time the ANAO has looked at the scheme since it was introduced in July 2011. The audit will aim to assess the effectiveness of the R&D - [Shipbuilder AUSTAL Ltd reports increased earnings guidance stemming from R&D investment](https://www.swansonreed.com.au/shipbuilder-austal-ltd-reports-increased-earnings-guidance-stemming-from-rd-investment/) - Whilst experiencing a setback in May following the announcement of a contract being awarded to a competitor, AUSTAL LIMITED has recently been one of the outstanding performers on the ASX, with the value of its shares having increased approximately 25% over the past quarter. AUSTAL LIMITED has R&D, manufacturing and service headquarters in Australia (Perth and Cairns), - [Camalic Pty Ltd and Innovation and Science Australia (Taxation) [2020] AATA 1590 (3 June 2020)](https://www.swansonreed.com.au/camalic-pty-ltd-and-innovation-and-science-australia-taxation-2020-aata-1590-3-june-2020/) - Introduction: A recent case heard in the AAT has affirmed a previous decision by Innovation and Science Australia (AusIndustry), finding that activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements. Background: Camalic Pty Ltd V ISA was a dispute in respect of a registration in the FY14 and FY15 - [Silver Mines Limited and Minister for Infrastructure and Regional Development [2016] AATA 707](https://www.swansonreed.com.au/silver-mines-limited-minister-infrastructure-regional-development-2016-aata-707/) - The AAT has affirmed the decision of the Minister for Infrastructure and Regional Development not to exercise the discretion under the Industry Research and Development Act 1986 to grant the taxpayer an extension of time to register for R&D tax concessions for an engineering “conceptual process study” in relation to its silver mining activities. In - [DZXP, KRQD and QJJS v Innovation and Science Australia [2017] AATA 576](https://www.swansonreed.com.au/dzxp-krqd-and-qjjs-v-innovation-and-science-australia-2017-aata-576/) - Introduction In the case of DZXP, KRQD and QJJS v Innovation and Science Australia [2017] AATA 576, Innovation Australia’s decision to evaluate the application of DZXP, KRQD and QJJS R&D as unsuccessful was contested by the respective companies and subsequently taken to Tribunal. Innovation Australia’s position, with respect to this, was that by virtue of - [VDRZ and Innovation Australia [2017] AATA 123](https://www.swansonreed.com.au/vdrz-and-innovation-australia/) - Introduction Tribunal: Justice D Kerr, President Date: 27 January 2017 Place: Sydney The proceeding involved a dispute regarding VDRZ’s entitlement to research and development tax concessions in accordance with s 39J of the Industry Research and Development Act 1986 (Cth) (the Act). It was referred for conciliation pursuant to s 34A of the Administrative Appeals - [Moreton Resources Ltd and Innovation and Science Australia (Taxation) [2018] AATA 3378 (10 September 2018)](https://www.swansonreed.com.au/moreton-resources-ltd-and-innovation-and-science-australia-taxation-2018-aata-3378-10-september-2018/) - Introduction The case Moreton Resources Ltd and Innovation and Science Australia (Taxation) [2018] AATA 3378 refers to a mining company that registered R&D activities for the years 2012, 2013 and 2014. After an examination of the registrations, Innovation and Science Australia (ISA) determined that these activities were ineligible for the R&D Tax Incentive. The company - [Ultimate Vision Inventions Pty Ltd and Innovation and Science Australia (Taxation) [2019] AATA 1633 (27 June 2019)](https://www.swansonreed.com.au/ultimate-vision-inventions-pty-ltd-and-innovation-and-science-australia-taxation-2019-aata-1633-27-june-2019/) - Introduction A recent case heard in the AAT has affirmed a previous decision by Innovation and Science Australia (AusIndustry) finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements. The case: Ultimate Vision Inventions Pty Ltd and Innovation and Science Australia (Taxation) [2019] AATA 1633 refers to a company that - [Moreton Resources Limited v Innovation and Science Australia [2019] FCAFC](https://www.swansonreed.com.au/federal-court-sets-aside-aat-decision-of-moreton-resources-limited-v-innovation-and-science-australia/) - This matter has been appealed to the Federal Court. Introduction: A recent decision has been handed down by the Full Federal Court in the case Moreton Resources Limited v Innovation and Science Australia [2019] FCAFC 120. The decision is still subject to appeal however shows clarification in disputes with existing R&D technology at new sites. - [H2O Exchange Pty Ltd and Innovation and Science Australia (Taxation) [2019] AATA 4195 (14 October 2019)](https://www.swansonreed.com.au/new-software-aat-case-finds-in-favour-of-isa-due-to-activities-having-insufficient-technical-unknowns-h2o-exchange-pty-ltd-and-isa/) - Introduction A recent case heard in the AAT has affirmed a previous decision by Innovation and Science Australia (AusIndustry) finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements. The case: H2O Exchange Pty Ltd and Innovation and Science Australia (Taxation) [2019] AATA 4195 from 14 October 2019 refers to a company that registered R&D - [Havilah Resources Ltd and Innovation and Science Australia (Taxation) [2020] AATA 933 (16 April 2020)](https://www.swansonreed.com.au/havilah-resources-ltd-and-innovation-and-science-australia-taxation-2020-aata-933-16-april-2020/) - Introduction: A recent case heard in the AAT has affirmed an internal review finding that Activities registered under the R&D Tax Incentive were not in accordance with the legislative requirements. The case: Havilah Resources Ltd and Innovation and Science Australia (Taxation) [2020] AATA 933 (16 April 2020) refers to R&D Activities claimed in the FY13 - [Commissioner of Taxation v Desalination Technology Pty Ltd](https://www.swansonreed.com.au/commissioner-of-taxation-v-desalination-technology-pty-ltd/) - AAT Decision - Desalination Technology Pty Ltd v FCT Click Here Federal Court Decision - FCT v Desalination Technology Click Here Commissioner of Taxation v Desalination Technology Pty Limited [2015] FCAFC 96 After previously dismissing the appeal, the Full Court of the Federal Court has allowed the Commissioner to appeal the decision of the AAT - [GHP 104 160 689 Pty Ltd v FCT [2014] AATA 515](https://www.swansonreed.com.au/ghp-104-160-689-pty-ltd-v-fct-2014-aata-515/) - Summary of 104 160 689 matter Taxation Ruling - TR2013/3 Click Here Taxation Ruling: TR 2013/3A1 - Addendum Click Here GHP 104 160 689 Pty Ltd v. Commissioner of Taxation Click Here The ATO has issued a Decision Impact Statement in relation to the recent decision handed down in the AAT, GHP 104 160 689 - [Docklands Science Pty Ltd and Innovation Australia [2015] AATA 973](https://www.swansonreed.com.au/docklands-science-pty-ltd-and-innovation-australia-2015-aata-973/) - In the case of Docklands Science Pty Ltd and Innovation Australia [2015] AATA 973, the Administrative Appeals Tribunal (AAT) has determined that activities conducted by the taxpayer were not R&D activities as there was insufficient documentation to support the claim. Background Three projects were registered for work claimed to be conducted with the CSIRO and - [JLSP and Innovation Australia [2016] AATA 23](https://www.swansonreed.com.au/jlsp-and-innovation-australia-2016-aata-23/) - In the case of JLSP v Innovation Australia [2016] AATA 23 the Administrative Appeals Tribunal (AAT) considered whether particular activities conducted by the applicant are “core R&D activities” within s 355-25(1) of the Income Tax Assessment Act 1997 (the ITAA 1997). Specifically, the matter sought to assess whether a clinical trial carried out in accordance - [Reported Cross Bench and Labor Party Opposition To R&D Reform Following Senate Economics Committee Public Hearing](https://www.swansonreed.com.au/reported-cross-bench-and-labor-party-opposition-to-rd-reform-following-senate-economics-committee-public-hearing/) - In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. This bill was a slightly modified version of a previous reform bill (Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018), which did not pass through the Senate at that time. - [Senate Committee Review Into Proposed R&D Reforms Due Soon, As Opposition Calls For Bolstering Of R&D Tax Incentive](https://www.swansonreed.com.au/senate-committee-review-into-proposed-rd-reforms-due-soon-as-opposition-calls-for-bolstering-of-rd-tax-incentive/) - InnovationAus has reported this week that the Senate Economics Legislation Committee review into proposed R&D tax incentive reform is reportedly set to re-open, and a meeting could occur in early July. In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. This bill was a slightly modified version of a previous - [Media Reports That R&D Tax Changes Will Apply Retrospectively for FY20 (If Passed) As Registrations Open For FY20](https://www.swansonreed.com.au/media-reports-that-rd-tax-changes-will-apply-retrospectively-for-fy20-if-passed-as-registrations-open-for-fy20/) - In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. This bill was a slightly modified version of a previous reform bill (Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018), which did not pass through the Senate at that time. - [World-First Parkinson’s Research: Is Australia Already Embracing Risk?](https://www.swansonreed.com.au/world-first-parkinsons-research-is-australia-already-embracing-risk/) - Although being brought to public attention in modern times by celebrities such as Michael J.Fox and Muhammad Ali, knowledge around Parkinson’s disease still remain relatively unknown. One in every 200 individuals will be diagnosed with Parkinson’s disease and the reason why the disease develops, or a cure, remains unidentified. In fact, it is the second - [New Research Reveals ‘Star Wars’ Soundtrack Helps Doctors Detect Bowel Cancer…](https://www.swansonreed.com.au/new-research-reveals-star-wars-soundtrack-helps-doctors-detect-bowel-cancer/) - The mere mention of Star Wars generally conjures remnants of John Williams’ infamous score. Even if you’re not among the film’s dedicated disciples, the iconic music is renowned worldwide. Indeed, seldom do film soundtracks leave such an ineffaceable mark on the world. Now, is that same soundtrack assisting doctors in detecting cancer? New research, written - [R&D Tax Incentive Review Issues Paper Now Available](https://www.swansonreed.com.au/rd-tax-incentive-review-issues-paper-now-available/) - In 2015-16, the Government is investing approximately $9.7 billion in research and development (R&D). Notably, around $3.2 billion of this amount specifically funds the business sector R&D. In launching the National Innovation and Science Agenda last year, the Australian Government announced that they would be undertaking a review of the R&D Tax Incentive programme to - [The Cost of Time When Claiming the R&D Tax Incentive: Salaries](https://www.swansonreed.com.au/the-cost-of-time-when-claiming-the-rd-tax-incentive-salaries/) - One of the areas that many R&D Tax Incentive claimants miss out on in the initial stages of undertaking eligible R&D activities is valuing the time spent on core activities. If you are not paying salaries this year as you are trying to keep costs low whilst you commence your R&D start-up business, you may - [Could a Sugar Tax Sweeten the Innovation Climate in Australia?](https://www.swansonreed.com.au/could-a-sugar-tax-sweeten-innovation-in-australia/) - Undeniably, sugar consumption is emerging as a major health issue to be faced by governments around the world, including in Australia. Correspondingly, debate on a sugar tax in Australia has now become a key topic of conversation since the British Government decided to proceed with a tax on soft drinks last month. In research published by PLOS ONE, - [Clever Commercialisation: The Role of Collaboration](https://www.swansonreed.com.au/impact-commercialisation-cooperation-innovation/) - A little-known fact is that Australians make up less than 0.3% of the world’s population but we account for over 3% of the world’s scientific research output. Certainly, as described in our previous post, Australia has contributed to several ‘world first’ innovations and has a dynamic invention ecosystem. In fact, Australia performs strongly on international measures of - [Start-Up Investment: ATO Clarifies New Angel Investor Tax](https://www.swansonreed.com.au/start-investment-ato-clarifies-new-angel-investor-tax/) - “Innovation” – the term has essentially become shorthand for all that encompasses future business in Australia since Turnbull’s rise to Prime Minister in September. From doubling investments in research and development (R&D) for clean energy to making coding compulsory in schools, Turnbull has vowed to put innovation at the heart of his Government's agenda. Consequently, the innovation statement was - [Is Australia’s Risk-Averse Younger Generation Impeding Australia’s Innovation System?](https://www.swansonreed.com.au/australias-risk-averse-younger-generation-impeding-australias-innovation-system/) - The young generation, often seen adorned with iPod earphones and the latest smartphone or tablet in tote, have grown up in a world where the Internet has become enmeshed into daily existence. Indeed, there is a sociological portrait of young people as being effortlessly tech savvy. However, a new report reveals that young Australians are - [A Future of Greater Innovation in Australia](https://www.swansonreed.com.au/future-greater-innovation-australia/) - July Brings New Tax Incentives As of July this year, young companies focused on innovation have greater hope for expansion. To elaborate, the new tax incentives for Early Stage Innovation Companies (ESICs) provide a maximum 20% offset for qualifying expenses capping at $200,000 each year for the investor and affiliates. The measures are ultimately a - [Government Announces New $18 Million Grant to Boost Global Collaboration](https://www.swansonreed.com.au/government-announces-new-18-million-grant-boost-global-collaboration/) - In a proposition to develop the economy away from a reliance on mining, the Australian government launched the National Innovation and Science Agenda (NISA) last December. Now, the Turnbull government has followed through on the agenda’s proposal to offer new grant initiatives aligned with the objectives of the Global Innovation Strategy. In specific, the Minister for - [Is Innovation Growth Suffering in Australia?](https://www.swansonreed.com.au/innovation-suffering-australia/) - During the 2016 Australian Financial Review innovation summit this past week, Dr. Alan Finkel Australia’s chief scientist, spoke to the imbalance of government spending on innovation. Business Insider quoted Dr. Finkel saying, “If science turns money into knowledge - then innovation turns knowledge back into money, and generally a lot more money than the taxpayers - [Is R&D A Valuable Measurement of Innovation?](https://www.swansonreed.com.au/_rd-valuable-measurement-innovation/) - The Relationship Between R&D and Innovation It is well known that when performed effectively research and development (R&D) can increase the value of a company. However, Forbes writes that this is commonly misconstrued as it has been claimed that research and development spending directly translates to a - [New AusIndustry Guidance released to assist R&D applicants](https://www.swansonreed.com.au/new-ausindustry-guidance-released-to-assist-rd-applicants/) - AusIndustry have recently released new guidance material to help companies and tax advisors correctly identify and register for the R&D Tax Incentive in the fields of software development, agriculture, building, construction, and mining. This guidance material includes specific examples and information on AusIndustry's expectations for participants registering activities under the R&D Tax Incentive in these fields. The four new Specific Issues Guidance documents are: Getting software - [COVID-19 and the R&D Tax Registration Deadline for YE 30 June 2019 (AusIndustry Announcement)](https://www.swansonreed.com.au/covid-19-and-the-rd-tax-registration-deadline-for-ye-30-june-2019-ausindustry-announcement/) - Our thoughts are with all who are directly impacted by the Coronavirus crisis, and we remain optimistic that the resolve of Australians will prevail. Swanson Reed has taken measures to protect our staff and clients, and will be fully functional throughout this crisis to support the needs of our stakeholders. The deadline for R&D Applications - [Moreton Resources (Subject Of R&D Tax Disputes) Enters Voluntary Administration](https://www.swansonreed.com.au/moreton-resources-subject-of-rd-tax-disputes-enters-voluntary-administration/) - Moreton Resources Ltd announced to the ASX on 10 June that the company has appointed administrators. Moreton Resources Ltd had become well publicised for its ongoing R&D tax disputes with Innovation and Science Australia: A decision by the AAT in September 2018 found in favour of Innovation and Science Australia, concluding that registered R&D Activities - [Australian-Based Immutep Ltd Receives $3.63M AUD from French R&D Tax Incentive](https://www.swansonreed.com.au/australian-based-immutep-ltd-receives-3-63m-aud-from-french-rd-tax-incentive/) - Sydney-based company Immutep Ltd has recently announced that it received a €2,173,454 (~A$3,630,000) R&D Tax Incentive payment in cash from the French Government under its Crédit d’Impôt Recherche scheme (CIR). The payment relates to activity the company is conducting in Paris to develop its novel Immunotherapy treatment. Immutep Ltd also registers activities under the Australian - [ResMed’s R&D Investment Has Increased Profits By 13%](https://www.swansonreed.com.au/resmeds-rd-investment-increased-profits-13/) - ResMed provide a range of medical devices that help to diagnose, treat and manage sleep apnea, chronic obstructive pulmonary disease and other chronic diseases. For the first quarter of the financial year, ResMed’s profits grew by 13 percent to $US523.7 million. Chief executive Mick Farrell said that continuous product innovation was helping the company to - [ISA releases plan for Australia to thrive in global innovation race](https://www.swansonreed.com.au/isa-releases-plan-for-australia-to-thrive-in-global-innovation-race/) - As Australia celebrates 26 years of continuous economic growth, Innovation and Science Australia (ISA) releases their plan for Australia to further thrive in the global innovation race. ISA has released their report titled “Australia 2030: Prosperity through Innovation,” which provides a roadmap for governments to accelerate Australia’s innovation system by 2030. The report is a - [Multinationals Should Undertake R&D In Australia](https://www.swansonreed.com.au/multinationals-undertake-rd-australia/) - Large international companies bring jobs to Australia in terms of sales, marketing and customer support. However, more jobs could be created if they also increased their R&D spend here. Why should multinational corporations undertake R&D in Australia? First off, they can take advantage of our top graduates. Australia has eight universities among the top 200 in - [innovAGEING - Australia's First Aged Care Innovation Network](https://www.swansonreed.com.au/innovageing-australias-first-aged-care-innovation-network/) - Australia’s ageing population means that over 1 million aged care staff will be needed by 2050. This presents numerous opportunities for technological and service-based change in the sector. innovAGEING is Australia’s first innovation network for aged care services and aims to encourage progressive thinkers and practitioners in the industry. The innovAGEING program aims to improve the - [Innovation Is Still On The Government's Agenda](https://www.swansonreed.com.au/innovation-still-governments-agenda/) - The Turnbull government’s “ideas boom” was not a hit with voters, with disruption being seen as either unrelatable or frightening by many. However, in a February 2018 interview with the Australian Financial Review, Michaelia Cash, Minister for Innovation and Jobs, advised that innovation was still an important part of the government’s agenda. Cash has been - [Proposed Changes To R&D Tax Incentive May Render Many Companies Ineligible](https://www.swansonreed.com.au/proposed-changes-rd-tax-incentive-may-render-many-companies-ineligible/) - In early April, Treasurer Scott Morrison confirmed an overhaul of the R&D Tax Incentive in the May federal budget. He stated that the government was closely examining recommendations from the Australia 2030: Prosperity Through Innovation plan, released by Innovation and Science Australia (ISA) in January. In an interview with the Australian Financial Review, Bill Ferris, - [Possible changes to $3 billion R&D tax incentive budget](https://www.swansonreed.com.au/possible-changes-to-3-billion-rd-tax-incentive-budget/) - The Australian Financial Review have today released an article in relation to the $3 billion R&D tax incentive budget. During comments at the AFR wealth summit, Treasurer Scott Morrison indicated changes to the R&D tax incentive may be forthcoming in the upcoming May budget. The Government may choose to adopt the recommendations from the ISA - [Global Wave and Tidal Energy Market Set to Boom](https://www.swansonreed.com.au/global-wave-tidal-energy-market-set-boom/) - In 2016, investment in renewables were double that of fossil fuels. With a focus on clean energy sources being developed as an alternative to fossil fuels, the global wave and tidal energy market is set to be worth $3.9 billion by 2025, up from $212.7 million in 2016. With water covering over 70 percent of the - [AusIndustry R&D Tax Incentive Updates For 2019](https://www.swansonreed.com.au/ausindustry-rd-tax-incentive-updates-for-2019/) - Conducting R&D activities generates new knowledge that can benefit the nation’s economy. In a recent AusIndustry information bulletin, it was mentioned that one of the main aims of the R&D Tax Incentive is to encourage Australian businesses to undertake research and development that would not be conducted otherwise. This is achieved by helping to offset - [StartupAUS Calls for Clearer Support for Software R&D Activities](https://www.swansonreed.com.au/startupaus-calls-for-clearer-support-for-software-rd-activities/) - StartupAUS, Australia’s national startup advocacy group has released a report titled Crossroads – Fifth Anniversary edition. Data from the company has found that almost 90 percent of startups rate the R&D tax incentive as "very important" or "critical" to their business's success. Within the report, they have called for greater assurance for software companies accessing - [R&D Tax Incentive Crackdown For Software Claims](https://www.swansonreed.com.au/rd-tax-incentive-crackdown-for-software-claims/) - Reports have emerged in the media recently of software development companies that have been subject to adverse R&D Tax Compliance proceedings. Whilst the benefits available under the R&D Tax Incentive are significant, these reports affirm the need to ensure R&D claims are completed with diligence, and in accordance with the current reporting expectations. Recent publications - [Australia's Attractiveness for Clinical Trials](https://www.swansonreed.com.au/australias-attractiveness-for-clinical-trials/) - To bring a new drug to market, an average of 12 years and $1.7 billion (US) in R&D spending is required. Yet only 1 in 5,000 drugs that begin preclinical testing make it to the market. This has led to a disproportionate number of drugs being developed for rare diseases (affecting less than 200,000 in - [Further Statement from Opposition on R&D Tax Policy](https://www.swansonreed.com.au/further-statement-from-opposition-on-rd-tax-policy/) - Opposition spokesman on innovation policy, Ed Husic has recently discussed R&D Tax Incentive during an interview by InnovationAus.com. Mr Husic’s comments come after the cost of the R&D Tax Incentive programme was reduced in the forward estimates published in the recent federal budget. Husic stated that “Labor absolutely and fundamentally recognises the powerful place occupied by - [Federal Election 2019 - Impact of Result on R&D Tax Incentive](https://www.swansonreed.com.au/federal-election-2019-impact-of-result-on-rd-tax-incentive/) - Over the past six months, the R&D Tax Incentive became a discussion point and the major political parties have differed in their views. Labor sought to position themselves as prioritizing the R&D Tax Incentive over the coalition government, and had made specific policy announcements including: Criticising the programme’s cost reduction in the budget papers, and stating - [Government’s First Comments on R&D Tax Incentive Since Election](https://www.swansonreed.com.au/governments-first-comments-on-rd-tax-incentive-since-election/) - The former (and likely to be ongoing) Minister for Industry, Science and Technology, Karen Andrews has been interviewed in today’s Australian Financial Review (21 May). This represented the Morrison government’s first comments on the R&D Tax Incentive since the coalition's return to government. Ms Andrews made note that the widespread media reports of startup entities - [Success of Australian Software Companies Linked to Investment in R&D](https://www.swansonreed.com.au/success-of-australian-software-companies-linked-to-investment-in-rd/) - A recent article published by AFR weekend has highlighted how investment in R&D has played a crucial role in the success of two growing local companies: Atlassian and Xero. Despite significantly growing revenues, both Atlassian and Xero have maintained a significant investment in R&D and product developments (figures quoted in the AFR article are R&D - [Reports of Government Considering Tax Incentives for Commercialisation of IP](https://www.swansonreed.com.au/reports-of-government-considering-tax-incentives-for-commercialisation-of-ip/) - The AFR has reported in articles this week that the government may consider incentives for the commercialisation of IP. This follows comments by Treasurer Josh Frydenberg who mentioned he would take a “close look” at the patent box tax incentive offered to companies in the UK whereby companies receive a lower tax rate on profits - [Research papers find benefits of Government Financial Assist has Positive Impact on Private Finance](https://www.swansonreed.com.au/research-papers-find-benefits-of-government-financial-assist-has-positive-impact-on-private-finance/) - A recent report published from the Office of the Chief Economist has found that government assistance (such as that available from the R&D Tax Incentive) has a positive impact on a company’s ability to generate external finance. The report referenced previous papers investigating the effectiveness of R&D Tax Incentives which found substantial evidence that receiving - [Cochlear calls for stability to R&D Tax Policy with release of FY19 Results](https://www.swansonreed.com.au/cochlear-calls-for-stability-to-rd-tax-policy-with-release-of-fy19-results/) - In comments published in The Australian coinciding with the release of their FY19 financial report, Cochlear has called on the Australian government to adapt policies to ensure Australia remains competitive in attracting global investment in R&D Activity. CEO Dig Howitt noted specifically that the R&D Tax Incentive must be subject to a stable policy platform - [Monadelphous recognises $7 Million provision for disputed R&D Tax Claims](https://www.swansonreed.com.au/monadelphous-recognises-7-million-provision-for-disputed-rd-tax-claims/) - Engineering contractor Monadelphous has released its FY19 annual report this week, and within recognised a $7 Million provision relating to repayment of R&D Claims for the FY15 and FY16 periods. The provision would indicate that the underlying disputed R&D Activities may have R&D Expenditure of around $70 to $80 Million. Monadelphous had previously reported to the - [Ombudsman To Deliver Findings On Investigation Into R&D Tax Compliance Reviews](https://www.swansonreed.com.au/ombudsman-to-deliver-findings-on-investigation-into-rd-tax-compliance-reviews/) - The Australian Small Business and Family Enterprise Ombudsman have announced that they will deliver the findings of an investigation into the processes for compliance reviews of companies registering activities under the R&D Tax Incentive. The announcement has noted that certainty of eligibility is essential if the R&D Tax Incentive is to fulfill the purpose of - [Tax Commissioner Comments On R&D Tax Incentive Compliance Difficulties](https://www.swansonreed.com.au/tax-commissioner-comments-on-rd-tax-incentive-compliance-difficulties/) - During a presentation to the Council of Small Business Organisations of Australia National Small Business Summit, tax commissioner Chris Jordan has commented that there is a structural problem with the operation of the R&D Tax Incentive, particularly surrounding the self assessment regime whereby the ATO may undertake reviews following a previous registration of R&D Activities - [Editorial in The Australian emphasises importance of R&D Tax Incentives](https://www.swansonreed.com.au/editorial-in-the-australian-emphasises-importance-of-rd-tax-incentives/) - An editorial published in today’s Australian Newspaper has highlighted that the taxation system is one of the most effective means of encouraging business to invest in R&D, and that Incentives could be used to enhance declining levels of business investment in R&D (“BERD”). The editorial emphasises Australia’s declining levels of BERD which have been widely - [Fintechs declare access to strong R&D Tax Programmes key to keeping R&D in Australia](https://www.swansonreed.com.au/fintechs-say-key-to-keeping-businesses-onshore-is-to-keep-rd-incentives-competitive/) - The Age has reported the results of a recent EY census of Fintech companies, which has found consensus among respondents who consider that having access to strong R&D tax programs increased the likelihood of keeping their business onshore rather than moving overseas. The census paper noted that: "Generous R&D tax incentive programs are available overseas and - [NSW establish R&D Advisory Council as BCA calls for more national action to address Australian decline](https://www.swansonreed.com.au/nsw-establish-rd-advisory-council-as-bca-calls-for-more-national-action-to-address-australian-decline/) - The AFR has reported that the NSW Government is to form a new advisory council, chaired by David Gonski with a brief to make NSW "the R&D leader within Australia and a world-class contributor”. Forming of the NSW R&D council has also come among calls from the Business Council of Australia for more to be - [StartupAUS Crossroads report calls for broadening of R&D Tax Incentive to more clearly support software](https://www.swansonreed.com.au/startupaus-crossroads-report-calls-for-broadening-of-rd-tax-incentive-to-more-clearly-support-software/) - StartupAUS, Australia’s national startup advocacy group has today released its latest reports including a series of recommendations to enhance the local eco-system for fast-growing companies. Included among the recommendations are calls to allow the R&D Tax Incentive to be more easily applied to companies conducting software development activities. Some key quotes from the report are - [Opposition make first comments on Innovation Policy Since Election](https://www.swansonreed.com.au/opposition-make-first-comments-on-innovation-policy-since-election/) - At a recent speech, shadow minister for Innovation and Technology Clare O'Neil has made some high-level comments with respect to the R&D Tax Incentive and Australia's innovation policy. Key points from the speech included the following: Australia’s national spending on R&D is about 1.8% of GDP. World-leading countries are spending more than 4%, and - [XPED Limited Announce Successful Appeal Of AusIndustry Finding For Disputed Software Activities](https://www.swansonreed.com.au/xped-limited-announce-successful-appeal-of-ausindustry-finding-for-disputed-software-activities/) - XPED Limited had previously announced to the ASX in July 2019 that the company had received notice from AusIndustry of a finding assessing registered activities as ineligible under the requirements of the R&D Tax Incentive for the 2017/18 period, totalling approximately $1.6M. The activities in dispute were in respect of development of Internet of Things - [AusIndustry Issues Details of Revised Integrity Management Approach](https://www.swansonreed.com.au/ausindustry-issues-details-of-revised-integrity-management-approach/) - AusIndustry have circulated a link to an update on their website in respect of a revised integrity management approach, which is detailed here. This update has come following the release of an Australian Small Business and Family Enterprise Ombudsman (ASBFEO) report on the administration of the R&D Tax Incentive, which was critical of some aspects - [Small Business Ombudsman completes review of R&D Tax Incentive administration processes](https://www.swansonreed.com.au/small-business-ombudsman-completes-review-of-rd-tax-incentive-administration-processes/) - In recent months it was reported that the Australian Small Business and Family Enterprise Ombudsman had been conducting a review of the administration of the R&D Tax Incentive’s administration. The report has now been completed and is available here. Some key recommendations by the Ombudsman’s report include the following: “Where compliance examinations/audits are necessary, they - [Reintroduction of legislation to reform R&D Tax Incentive](https://www.swansonreed.com.au/reintroduction-of-legislation-to-reform-rd-tax-incentive/) - The federal government has today reintroduced legislation to reform the R&D Tax Incentive (Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019) which is detailed here. The previous bill attempting to reform the R&D Tax Incentive did not pass through the Senate, and a Senate Economics Legislation Committee recommended that the bill should be - [Senate Set To Consider Latest R&D Tax Reform Bill](https://www.swansonreed.com.au/senate-set-to-consider-latest-rd-tax-reform-bill/) - Federal parliament is scheduled to resume for the year next week. InnovationAus reported today that a “showdown” is looming on the proposed reforms to the R&D Tax Legislation. The Government had previously sought to pass R&D Tax reforms announced in the 2018 federal budget, however these were not enacted as law following concerns raised by - [CSL Moves Up International Biotech Market Capitalisation Rankings Driven By R&D Investment](https://www.swansonreed.com.au/csl-moves-up-international-biotech-market-capitalisation-rankings-driven-by-rd-investment/) - A report in the Australian Financial Review has highlighted the remarkable performance of CSL over recent years, largely due to the company's investment in R&D Activity. The report has highlighted: CSL's share price has increased more than 50% during 2019, which is rare for a company of such size and maturity; If CSL maintains their - [Concerns Over Consultation Process for R&D Tax Reform Bill](https://www.swansonreed.com.au/concerns-over-consultation-process-for-rd-tax-reform-bill/) - A reform bill proposing controversial changes to the R&D Tax Incentive for FY20 is currently being considered by the Senate. This bill is a slightly modified version of a previous reform bill (Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018), which did not pass - [InnovationAus Reports Proposed Changes to the R&D Tax Incentive are Now Unlikely to Pass](https://www.swansonreed.com.au/ationaus-reports-proposed-changes-to-the-rd-tax-incentive-are-now-unlikely-to-pass/) - InnovationAus has reported this week that proposed changes to the R&D tax incentive are now unlikely to pass as legislation this year: A reform bill proposing controversial changes to the R&D Tax Incentive for FY20 was being considered by the Senate prior to the onset of the Covid-19 situation. This bill is a slightly modified version of a previous reform - [AusIndustry Lodgement Concessions on Finding Applications due on 30 June 2020](https://www.swansonreed.com.au/ausindustry-lodgement-concessions-on-finding-applications-due-on-30-june-2020/) - Companies seeking to claim overseas expenditure, or seeking an advance determination on eligibility of a project must lodge a finding Application period to the end of the financial year in which the activity is first conducted (i.e. 30 June for activities in FY20). During a finding process, AusIndustry provides a binding determination of eligibility, and - [Reports That Senate Economics Committee Inquiry Into R&D Tax Incentive Reform Bill Has Been Deferred](https://www.swansonreed.com.au/reports-that-senate-economics-committee-inquiry-into-rd-tax-incentive-reform-bill-has-been-deferred/) - In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. This bill was a slightly modified version of a previous reform bill (Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018), which did not pass through the Senate at that time. - [Argent Minerals Settles R&D Tax Dispute Allowing Some Of Previously Disputed Claim To Be Deemed Eligible](https://www.swansonreed.com.au/argent-minerals-settles-rd-tax-dispute-allowing-some-of-previously-disputed-claim-to-be-deemed-eligible/) - Argent Minerals Limited has previously disclosed a liability in the company’s 2019 annual report for “R&D Claims repayable” of approximately $1.4M. This liability was in respect of R&D Tax Offsets for the FY16 and FY17 periods that AusIndustry had found relate to ineligible activities. Argent Minerals Limited had also reported that the company remained of the view that - [innovationCAFE 2015](https://www.swansonreed.com.au/innovationcafe-2015/) - Swanson Reed is pleased to be taking part in the 2015 innovationCAFE that will focus on the three pillars for a new Australia. If Australia is to be a sustainable, innovation-led economy three interrelated pillars need to be aligned: Productivity Commercialisation Innovation Culture Each session will be presented by leaders in their field and outline - [Could a ‘Start-Up Mentality’ Drive Innovation in Australia?](https://www.swansonreed.com.au/start-mentality-help-innovation-australia/) - “Embrace technology disruption” – the phrase has been heavily bandied about in public discourse lately after Turnbull announced the expression in his first statement after being elected Liberal leader last year. Although generally pertaining to the topic of Turnbull’s ‘Idea Boom’ or about shifting the culture of Australia, a new report reveals Australian small and - [R&D Tax Incentive Reform Still On Government Agenda, Despite Focus On Enhancing Local Manufacturing](https://www.swansonreed.com.au/rd-tax-incentive-reform-still-on-government-agenda-despite-focus-on-enhancing-local-manufacturing/) - Industry Minister Karen Andrews addressed the National Press Club during the week to outline Government plans for industry policy in the wake of the COVID-19 situation. Points from the speech include the following: Ms Andrews said the Coronavirus pandemic had exposed gaps in Australia's manufacturing capacity, and there would be "significant changes" once the crisis - [Opposition Critical of Government Innovation Policy as Australia Emerges from COVID-19](https://www.swansonreed.com.au/opposition-critical-of-government-innovation-policy-as-australia-emerges-from-covid-19/) - An article in The Australian by long time Labor Industry Spokesman Kim Carr this week has been critical of the Australian Government’s R&D Tax Policy, and has linked this to decline in Australian manufacturing and supply chain weakness. Highlights form Carr’s article include the following: The government reintroduced the R&D Tax reform bill in December - [STA Lobbying for Australia to Have Greater “Sovereign Capability” in Manufacturing, Underpinned by Strong R&D](https://www.swansonreed.com.au/sta-lobbying-for-australia-to-have-greater-sovereign-capability-in-manufacturing-underpinned-by-strong-rd/) - In the wake of the COVID-19 situation, there has been numerous parties lobbying that: Not only should the R&D Tax reforms proposed to apply for FY20 be abandoned; but The government should also implement measures to enhance incentives for business investment in R&D. InnovationAus has reported that Science & Technology Australia (STA) has proposed: If - [Using R&D Tax Incentive to Make the Most of Downtime During COVID-19 Disruptions](https://www.swansonreed.com.au/using-rd-tax-incentive-to-make-the-most-of-downtime-during-covid-19-disruptions/) - The current COVID-19 pandemic presents business with a difficult and uncertain period. The disruptions are multifaceted, and may impact upon: A company's ability to legally trade or demand for their output; Logistics of transporting a company's supply inputs, output or people; Access to cash and working capital from customers and investors; Working arrangements and the - [Real Energy Corporation Limited provides update on the status of Innovation Australia R&D Dispute](https://www.swansonreed.com.au/real-energy-corporation-limited-provides-update-on-the-status-of-innovation-australia-rd-dispute/) - Within its recently released half yearly report, Real Energy Corporation Limited (ASX: RLE) has provided an update on the status of the company's dispute with AusIndustry/ISA over eligibility of its R&D Activities; The company had previously received an adverse finding for the company's R&D Tax Registrations during the FY14, FY15 and FY16 periods, with corresponding - [CSL and Cochlear Call for Stability to R&D Tax Policy as Parliament Consider Proposed Reforms](https://www.swansonreed.com.au/csl-and-cochlear-call-for-stability-to-rd-tax-policy-as-parliament-consider-proposed-reforms/) - Over the past week, The Australian has featured articles quoting Australia's two leading medical technology companies, CSL and Cochlear, calling on the Australian government to deliver consistent R&D Tax incentives after four years of policy review and uncertainty. The article comes at a time when Parliament and the Senate are again considering an R&D Tax - [Strike Energy Ltd Provides Update On R&D Tax Dispute Currently In AAT](https://www.swansonreed.com.au/strike-energy-ltd-provides-update-on-rd-tax-dispute-currently-in-aat/) - Strike Energy Ltd previously reported to the ASX that R&D activities the company had registered had been found by AusIndustry to not be eligible under the legislative criteria. The matter is currently before the Administrative Appeals Tribunal (AAT) and within Strike Energy's half year report published to the ASX, the company provided the following update: - [Federal Government Flags Potential Further R&D Tax Changes to Help Fintech Industry](https://www.swansonreed.com.au/federal-government-flags-potential-further-rd-tax-changes-to-help-fintech-industry/) - The Australian newspaper has highlighted a speech to the Australian Computer Society on Friday made by Liberal Senator Andrew Bragg, who is chairing a committee examining Australia's fintech sector. The article noted that: The government is mulling a number of policy shifts to make life easier for start-ups; Senator Bragg is quoted as saying: "FinTech - [Potential AusIndustry and ATO Lodgement Concessions for Bushfire Impacted Companies](https://www.swansonreed.com.au/potential-ausindustry-and-ato-lodgement-concessions-for-bushfire-impacted-companies/) - Many areas of regional Australia have been impacted by severe bushfires over the summer. Published on the AusIndustry website recently is the following extract: If you’ve been impacted by these bushfires, we don’t want you to be concerned about your R&D Tax Incentive claims. Now is the time to focus on yourself, your family and - [Fintech Australia Uses Fintech And Regtech Senate Inquiry To Highlight Importance Of The R&D Tax Incentive](https://www.swansonreed.com.au/fintech-australia-uses-fintech-and-regtech-senate-inquiry-to-highlight-importance-of-the-rd-tax-incentive/) - In December 2019, Fintech Australia released its response to the Financial Technology and Regulatory Technology Senate inquiry. Their committee voiced concerns regarding the Government’s plan to cut $1.35B from the R&D Tax Incentive and stated that the current definition of “experiments” was impeding innovation by preventing software companies from claiming the tax offset. The submission - [Atlassian co-founder Scott Farquhar calls for stability to R&D Tax Incentive](https://www.swansonreed.com.au/atlassian-co-founder-scott-farquhar-calls-for-stability-to-rd-tax-incentive/) - Speaking recently at the BESydney Global Ambassador Program annual gala dinner, Atlassian co-founder Scott Farquhar has called on the government to retain support for start-ups through initiatives such as the R&D Tax Incentive. Scott Farquhar emphasised that if governments were to ensure that Australians are creators of technology and not just consumers of inventions made - [Monadelphous discloses it will submit no R&D claim for current period](https://www.swansonreed.com.au/monadelphous-discloses-it-will-submits-no-rd-claim-for-current-period/) - As has been reported in the media previously, MONADELPHOUS GROUP LIMITED has recognised a 6.3M provision in its FY19 results with respect to a potential repayment of base tax liability for disputed R&D Claims in the FY15 and FY16 periods. Monadelphous announced to the ASX in May 2019 that the company had received notices of - [Real Energy Corporation Limited provides update on status of R&D Dispute](https://www.swansonreed.com.au/real-energy-corporation-limited-provides-update-on-status-of-rd-dispute/) - Within its recently released annual report, Real Energy Corporation Limited (ASX: RLE) has provided an update on the status of the company's dispute with AusIndustry/ISA over the eligibility of its R&D activities. The company had previously received an adverse finding for the company's R&D Tax Registrations during the FY14, FY15 and FY16 periods, with corresponding - [Patent Grant Program featured in The Australian Financial Review](https://www.swansonreed.com.au/patent-grant-program-featured-australian-financial-review/) - The Australian Financial Review recently featured Swanson Reed and the proposed Patent Grant Program in Tuesday's release. The article Innovation crisis a matter of urgency, tax advisers say addresses the innovation crisis looming if the Australian Government does not act soon on policy to encourage investment in innovation. Swanson Reed collaborated with Wrays, intellectual property and patent advisers, - [Base metal explorer takes up provision for repayment of disputed R&D Tax Offset](https://www.swansonreed.com.au/base-metal-explorer-takes-up-provision-for-repayment-of-disputed-rd-tax-offset/) - Argent Minerals Limited has disclosed a liability in the company’s 2019 annual report for “R&D Claims repayable” of approximately $1.4M. This liability is in respect of R&D Tax Offsets for the FY16 and FY17 periods that AusIndustry have found relate to ineligible activities. The report notes that: the finding was received in January 2019, and - [Ai Group Calls for Stability to R&D Tax Incentive](https://www.swansonreed.com.au/ai-group-calls-for-stability-to-rd-tax-incentive/) - Within comments posted by the AFR, Ai Group chief executive Innes Willox has called on the government to abandon proposed reforms to the R&D Tax Incentive, as well as provide increased investment in direct R&D Programmes. Innes Willox made specific reference to the ‘Intensity Threshold’ test within proposed R&D Reforms as a harmful measure. If - [Industry Minister’s Comments to AFR regarding application of R&D Tax Incentive to Software](https://www.swansonreed.com.au/industry-ministers-comments-to-afr-regarding-application-of-rd-tax-incentive-to-software/) - The AFR has reported that Industry Minister Karen Andrews (whose responsibility includes oversight of the R&D Tax Incentive) recently met with representatives of high profile Australian start ups and parties from venture capital firms. Attendees at the meeting included personnel from Airtasker, who had a previously lodged R&D claim found to be ineligible by regulators, - [Moreton Resources' R&D Activities Affirmed As Ineligible](https://www.swansonreed.com.au/moreton-resources-rd-activities-affirmed-as-ineligible/) - On 12 September 2018, Moreton Resources Ltd announced on the ASX that the Administrative Appeals Tribunal (AAT) recently affirmed a decision by Innovation and Science Australia (ISA) that registered R&D activities were not eligible. This was decided on the basis that underground coal gasification is a known and proven technology and is therefore not considered - [Importance Of Stable R&D Tax Incentive A Consensus During AFR Innovation Summit](https://www.swansonreed.com.au/importance-of-stable-rd-tax-incentive-a-consensus-during-afr-innovation-summit/) - This week, the Australian Financial Review (AFR) hosted its annual Innovation Summit involving presentations and discussions by technology sector and industry leaders. The importance of stability in innovation policy (and in particular, the R&D Tax Incentive) was a largely uniform view among those participating in the summit. Key notes from the presentations include the following: - [Satellite communications company, Myriota, first start up to sign agreement with Australian Space Agency](https://www.swansonreed.com.au/satellite-communications-company-myriota-first-start-up-to-sign-agreement-with-australian-space-agency/) - Myriota, a satellite communications company working closely with the University of South Australia in 2015, has received funding’s of $15 million dollars with Boeing HorizonX Ventures. Anthony Murfett said that “it demonstrates that businesses of all sizes can make a significant contribution to Australia’s space industry.” The coaction of a startup and the Space Agency - [Government indicates Senate Economics Committee recommendations on R&D reforms being considered, whilst R&D companies call for certainty](https://www.swansonreed.com.au/government-indicates-senate-economics-committee-recommendations-on-rd-reforms-being-considered-whilst-rd-companies-call-for-certainty/) - An article published in today’s SMH has indicated that the government’s proposed reforms to the R&D Tax Incentive may be back on the agenda. The bill to enact these reforms, the Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018, did not pass through the - [Why Australia Should Change its Attitude on Innovation](https://www.swansonreed.com.au/why-australia-should-change-its-attitude-on-innovation/) - Three months ago, SpaceIL, a privately owned Israeli company, conducted a spacecraft project that made history when it landed on the moon. The landing, however, was disastrous, with the robot crashing onto the moon surface. Despite this set back the team behind the robot (named Beresheet) did not see this as a setback but rather - [Industry Leaders Call for Stability to R&D Tax Incentive as a Top Priority](https://www.swansonreed.com.au/industry-leaders-call-for-stability-to-rd-tax-incentive-as-a-top-priority/) - Following on from Prime Minister Scott Morrison’s calls for business to identify regulatory road blocks to investment, Industry Leaders have named proposed cuts to the R&D Tax Incentive as their key concern. An AFR article published today has reported that industry leaders consider reversing $4B in cuts over the estimate periods from the two preceding - [AFR Publishes Statistics on Repayment of R&D Claims Found Ineligible](https://www.swansonreed.com.au/afr-publishes-statistics-on-repayment-of-rd-claims-found-ineligible/) - AFR has published data it has attained via freedom of information laws with respect to the repayment of R&D Claims found to be ineligible upon audit. These documents reportedly showed $500 million was reclaimed in R&D incentive compliance cases across three years; $200 million in FY18, $115 million in FY17 and $185 million in FY16. - [REAL ENERGY CORPORATION - R&D Activities Found to be Ineligible Following AusIndustry Review](https://www.swansonreed.com.au/real-energy-corporation-rd-activities-found-to-be-ineligible-following-ausindustry-review/) - Real Energy Corporation Limited (ASX : RLE) have announced to the ASX that the company has received notice that AusIndustry has found the company’s R&D Activities for the FY14, FY15 and FY16 years to be ineligible. During the period of the last three years, Real Energy Corporation Limited has been paid around $7.2 million - [Northern Minerals Limited R&D Claim Update](https://www.swansonreed.com.au/northern-minerals-limited-rd-claim-update/) - Northern Minerals Limited (ASX: NTU) have reported to the ASX that they have received notices that the company’s registrations for its research and development tax offset claims submitted for FY17 and FY18 have been considered ineligible by Ausindustry. Irrespective of whether NTU will exercise its review rights under the IR&D Act, Northern Minerals Limited - [Labor Announcement on R&D Tax Policy](https://www.swansonreed.com.au/labor-announcment-on-rd-tax-policy/) - During this week’s election campaign announcements, Labor party industry spokesmen Kim Carr has outlined the following in discussions with the AFR and Innovationaus.com: Labor want to increase Australia’s Business Expenditure on R&D to 3% of GDP by 2030. As part of this, they would seek to double the number of companies registered for the R&D - [DuluxGroup Takeover Shows Impact R&D Investment Can Have On Company Value](https://www.swansonreed.com.au/duluxgroup-takeover-shows-impact-rd-investment-can-have-on-company-value/) - It has recently been announced that DuluxGroup's board has accepted an offer to be taken over for $3.8 billion by Japan-based Nippon Paint Holdings; DuluxGroup has been one of Australia's largest investors in corporate R&D, and has been a strong advocate for maintaining stability of the Australian R&D Tax Incentive. DuluxGroup were also actively involved in: The - [Labor Statements on Innovation Policy](https://www.swansonreed.com.au/labor-statements-on-innovation-policy/) - Opposition Innovation, Industry and Science Spokesman Senator Kim Carr has been quoted in the AFR today with respect to Labor’s innovation policy during the federal election campaign. Carr Indicated that if Labor were to win the election, he would work with AusIndustry, the ATO and Treasury with respect to reviewing the processes for compliance assessments - [Global Veterinary Surgical Instrument Projected Growth due to R&D Incentives](https://www.swansonreed.com.au/global-veterinary-surgical-instrument/) - A study involving some of the biggest veterinary surgical instruments manufacturers predicts a growth of approximately 6.5% during the forecast period 2018- 2023. The growth is as a result of the rise in R&D expenditure, product innovation and demands in pet care on a global scale as the market is increasing going more competitive. - [Budget 2019: R&D Tax Incentive Programme Cost Reductions with No Specific Detail](https://www.swansonreed.com.au/budget-2019-rd-tax-incentive-programme-cost-reductions-with-no-specific-detail/) - The Federal Government handed down their budget on 2 April 2019 and whilst there appeared to be no specific new changes proposed to the R&D Tax Incentive, the forward estimates cost of the programme is projected to reduce by $1.35 billion. It is not clear whether this cost reduction is a product of: The legislative - [R&D Tax Incentive Changes Announced in 2018-19 Budget](https://www.swansonreed.com.au/rd-tax-incentive-changes-announced-in-2018-19-budget/) - In response to the recommendations in the '2016 Review of the R&D Tax incentive' the government has announced proposed R&D Tax Incentive changes within the 2018-19 Federal Budget released yesterday, 8 May 2018. The changes take on board some recommendations from ISA’s previous review of the programme, along with some of the government’s own savings and - [AIIA Says R&D Tax Incentive Is Crucial For Australian AI Development](https://www.swansonreed.com.au/aiia-says-rd-tax-incentive-is-crucial-for-australian-ai-development/) - The Australian Information Industry Association (AIIA) has stated that government, industry and researchers must work together to ensure solutions are developed for potential opportunities and issues posed by artificial intelligence (AI) products and services. Chief Executive Ron Gauci said that a focus on skills development and an effective R&D Tax Incentive programme would encourage a - [Economics Legislation Committee Recommends Deferral of Proposed Changes to R&D](https://www.swansonreed.com.au/economics-legislation-committee-recommends-deferral-of-proposed-changes-to-rd/) - The Senate Economics Legislation Committee has today handed down their recommendation on proposed changes to the R&D Tax Incentive, which have followed recent consultations with the industry. The committee, which is made up of members from varying sides of politics, has recommended the Senate “defer consideration” of the bill until “further examination and analysis of - [CBA Settlement of Disputed Claims for Software R&D Activities](https://www.swansonreed.com.au/cba-settlement-of-disputed-claims-for-software-rd-activities/) - CBA have announced to the ASX on 18 March that they have entered into a settlement in respect of a tax dispute regarding the eligibility of claims for software development R&D activities. Below is an extract from the ASX announcement: Commonwealth Bank of Australia has agreed to withdraw from all current proceedings with the ATO - [Visas: The Golden Ticket to Conquering Innovation Fatigue?](https://www.swansonreed.com.au/visas-the-golden-ticket-to-conquering-innovation-fatigue/) - In a bid to broaden the economy away from a reliance on mining, the Australian government launched the National Innovation and Science Agenda (NISA) last December. As noted in the agenda, one of the Government's strategic priorities is to attract the “best and brightest” entrepreneurial skills and talent into Australia. As a result, the government aims to support - [Technology One R&D Expenditure](https://www.swansonreed.com.au/technology-one-rd-expenditure/) - Brisbane based IT company Technology One Limited have publicly recently released their Annual Report for the YE 30 Sep 2018 and have attributed a tax saving of $3.98 Million to their R&D Tax Incentive Claim. This can be inferred as R&D Expenditure of approximately $47 Million during FY18 and per the annual report, has been driven - [Opposition Policy on R&D Tax Incentive](https://www.swansonreed.com.au/opposition-policy-on-rd-tax-incentive/) - With a federal election due over the coming months, the opposition labor party have made some announcements with respect to their policy on the R&D Tax incentive. The original R&D tax incentive legislation was enacted whilst the labor was in power. Labor have committed to maintain the R&D tax incentive as the primary lever to - [WA Manufacturing Lobby Seeks Reform](https://www.swansonreed.com.au/wa-manufacturing-lobby-seeks-reform/) - Western Australia’s manufacturing sector could be shaken up as the state’s peak business lobby looks into boosting the international competitiveness through significant reforms. Some of the proposed changes include slashing the company tax rate to 25%, increasing R&D incentives and privatising electricity assets. Further, the Chamber of Commerce and Industry of Western Australia (CCIWA) is - [Companies that have the best reputation as innovators aren’t necessarily those that spend the most on R&D](https://www.swansonreed.com.au/companies-that-have-the-best-reputation-as-innovators-arent-necessarily-those-that-spend-the-most-on-rd/) - Despite Switzerland being known as one of the most innovative nations, latest reports have shown a 10% decline in the country’s research and development spending. This comes as a surprise due to the fact that worldwide R&D expenditure has reached an all-time high of $782 billion. The biggest Swiss companies invested $27.5 billion into R&D - [Government commitment to pioneer in the life sciences industry by investing into research and development](https://www.swansonreed.com.au/government-commitment-to-pioneer-in-the-life-sciences-industry-by-investing-into-research-and-development/) - In 2016 the Johnson & Johnson Partnering Office was launched to enable innovative research and development (R&D) for Queensland’s life sciences industry. The R&D facility is housed at Queensland University of Technology’s (QUT) Institute of Health and Biomedical Innovation. The R&D centre serves as a strong platform to identify and nurture life science and research - [April Deadline for 2013 Claims Fast Approaching](https://www.swansonreed.com.au/important-rd-tax-considerations-for-last-minute-april-30-lodgements/) - 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 - [Cosmetic brand Cellmid Limited has received an $808,000 research and development grant](https://www.swansonreed.com.au/cosmetic-brand-cellmid-limited-has-received-an-808000-research-and-development-grant/) - The functional cosmetics brand, Cellmid Limited has received an $808,000 research and development grant under the tax incentive scheme from the Australian Taxation Office. Cellmid is an Australian life sciences accelerator with lead programs in multiple disease indications. The company holds the largest and most comprehensive portfolio of intellectual property relating to the novel targets - [Vision Intelligence Pty Ltd and Commissioner of Taxation [2013] AATA 527](https://www.swansonreed.com.au/vision-intelligence-pty-ltd-and-commissioner-of-taxation-2013-aata-527/) - The recent AAT decision, Vision Intelligence Pty Ltd and Innovation Australia [2013] AATA 527 was a taxation appeals case that related to a taxpayer's calculation of expenditure items within its R&D tax claim submission and the possible penalties the ATO may impose on that taxpayer for recklessness in the calculation. This case is relevant to companies that wish - [Government reintroduces 1.5% Cut to R&D Tax Incentive](https://www.swansonreed.com.au/government-reintroduces-1-5-cut-to-rd-tax-incentive/) - Tax and Superannuation Laws Amendment (2015 Measures No.3) Bill 2015 that proposes a 1.5% cut to R&D Tax Incentive rates passed the House of Representatives and is now being considered by the Senate. Click here to view the Tax and Superannuation Laws Amendment (2015 Measure No. 3) Bill 2015 The Bill is a reintroduction of previous legislation - [CSL Calls On Government to Maintain R&D Tax Incentive](https://www.swansonreed.com.au/csl-calls-government-maintain-rd-tax-incentive/) - Australian biotechnology company CSL is supportive of the 2030 Strategic Plan to increase Australia's level of innovation, but has requested that the government retain the R&D tax incentive for businesses and provide more support to scientists to make a real impact. Chief Executive Paul Perreault stated that, “It’s really about making sure that the R&D - [Proposed R&D Cap Could Hamper Aussie Innovation](https://www.swansonreed.com.au/proposed-rd-cap-could-hamper-aussie-innovation/) - With changes to the R&D tax incentive to be announced in next week’s budget, entrepreneurs are hoping that the proposed $2 million cap on annual R&D spend will not go ahead. Treasurer Scott Morrison said the incentive was “Not about writing blank cheques to everyone that has a good idea,” but Aussie startups, who are heavily - [The R&D Tax Incentive Makes It Through Federal Budget Cuts Unharmed](https://www.swansonreed.com.au/2017-federal-budget/) - As a relief to many, no adverse changes were proposed to the R&D Tax Incentive within the Federal Budget delivered by the government on May 9. The R&D Tax Incentive has played an important role in attracting investment to Australia, particularly in knowledge intensive industries. It has also provided small business valuable working capital in - [Neurotechnology company receives $35 million R&D funding to cure sleep problems](https://www.swansonreed.com.au/neurotechnology-company-aims-to-cure-sleep-problems/) - Dreem is a neurotechnology company that is currently working on a state of the art product which could potentially end sleeping problems and enhance people’s quality of rest during the night. The company has just been granted $35 million R&D funding to accelerate its latest product and invest into further research and development to advance - [3D Printing is changing the construction industry](https://www.swansonreed.com.au/3d-printing-is-changing-the-construction-industry/) - The construction industry has traditionally been very conservative and at times slow to innovate, however a change seems to be occurring. The industry is now embracing more innovative technology and the introduction of 3D printing buildings and homes is one current example of this. The 3D buildings are made by a very large 3D printer - [Tesla continues increasing R&D spending](https://www.swansonreed.com.au/tesla-continues-tincreasing-rd-spending/) - Tesla’s revenue continues to increase and subsequently so does their research and development. In 2017 Tesla’s R&D spending reached $1.378 billion which is actually not that large in comparison to other auto companies. General Motors spent $7.3 billion, Volkswagen spent €13.135 billion and Mercedes and BMW spent over €6 million. While Tesla’s R&D spending may - [R&D Intensity Requirement May Unfairly Penalise Certain Industries](https://www.swansonreed.com.au/rd-intensity-requirement-may-unfairly-penalise-certain-industries/) - Sixty million people are fed by Australian farming exports. With an ever-increasing global population, innovation in agriculture is essential to a sustainable future. However, the changes to the R&D tax incentive announced in the 2018 Federal Budget may be disadvantageous for industries like agribusiness. Up to 12,000 Australian companies could be affected by the R&D - [$41 million federal funding allocated to Australian National Space Agency](https://www.swansonreed.com.au/41-million-federal-funding-allocated-to-australian-national-space-agency/) - Despite a tip being released that the Australian National Space Agency could receive up $50 million in federal funding, the final announcement of $41 million remained to be a pleasing outcome for all in the industry. The space industry and space-reliant businesses are excited for future expansion plans and partnerships with international space agencies. The - [$24 million cash boost for grains industry research and development](https://www.swansonreed.com.au/7657-2/) - The State Government has announced a $24 million cash boost for the grains industry research and development (R&D). This significant investment marks an important step in keeping the industry competitive against the rising threat of Black Sea Competition. The $24 million funding contributes to the already $21 million invested into the WA grains research industry - [NBN secures $3 million R&D partnerships with Universities](https://www.swansonreed.com.au/nbn-secures-3-million-rd-partnerships-with-universities/) - National Broadband Network (NBN) has secured multiple significant research and development (R&D) deals with the University of Melbourne (UoM) and the University of Technology Sydney (UTS). The R&D partnerships have a cumulative value of $3 million. NBN’s R&D plans are to develop new technologies that will help enable more effective services for Australian's on its - [Diversifying Board Members Could Be Key To Innovation](https://www.swansonreed.com.au/diversifying-board-members-key-innovation/) - Innovation requires teamwork and multiple perspectives. Individuals cannot solve every challenge alone. Therefore, innovation is more probable if the entire company is encouraged to generate ideas. Generally, a greater variety of ideas will result from teams with a greater variety of backgrounds and skills. Chair of Innovation and Science Australia, Bill Ferris, believes that diversity - [QLD Company fined over $4 million due to incorrect R&D tax claims](https://www.swansonreed.com.au/qld-company-fined-over-4-million-due-to-incorrect-rd-tax-claims/) - Advisors and Business owners are being warned! A Queensland business has been fined over $4 million for encouraging clients to lodge overstated or ineligible R&D tax incentive claims. On Tuesday 20 March the Australian Taxation Office confirmed the fine had been secured in the Federal Court against a company and its director for breaching promoter - [Research & Development Tax Incentive boost from government to fast-track plant R&D](https://www.swansonreed.com.au/boost-from-government-to-fast-track-plant-rd/) - Australia’s only ASX listed plant breeding company, Abundant Produce Limited, has received a $630,000 Research & Development Tax Incentive. This incentive is an increase from previous estimates of $250,000. In addition to the received grant, the NSW Government’s TechVouchers program will also fund a $20,000 project in collaboration with the University of NSW for the - [Government To Commit $2.6 Million Towards 3D-Printed Explosives](https://www.swansonreed.com.au/government-commit-2-6-million-towards-3d-printed-explosives/) - New ways to implement 3D printing are constantly being developed. Recently, the Australian Government announced that it would contribute $2.6 million towards 3D-printed explosives research over the next two years as part of the Co-operative Research Centre Program. The Defence Science and Technology (DST) Group will partner with defence research company DefendTex, RMIT, Flinders University - [Could robots soon replace humans?](https://www.swansonreed.com.au/robots-soon-replace-humans/) - The times for people needing human companionship may soon be over as the research and development team at Fuji Xerox are determined to build companions for humans in the form of a robots. This will be one of the longest studies ever of day to day human interaction with a social robot in order to - [Research and development paves the way for genetic wheat breeding](https://www.swansonreed.com.au/research-and-development-paves-the-way-for-genetic-wheat-breeding/) - Latest research and development outcomes in the Wheat industry may pave the way for breeding programs to deliver the next generation of high performance crops. The new research technique used is Hyperspectral Reflectance which is a phenotyping tool that uses a new methodology that speeds up the process and delivers new, valuable genetic information. The colour of - [Research and Development in SA taken to new level](https://www.swansonreed.com.au/research-development-sa-taken-new-level/) - The Grain Research and Development (R&D) Corporation (GRDC) has announced a major contribution to the establishment of facilities at the South Australian R&D Institute’s (SARDI) new Clare Research Centre. SARDI has received a $270,000 R&D Infrastructure Grant to build a controlled environment growth room at the new research centre. In addition to this grant PIRSA-SARDI - [AI Presents A Significant Opportunity For Australian Businesses](https://www.swansonreed.com.au/ai-presents-significant-opportunity-australian-businesses/) - Innovation and Science Australia (ISA) stated in the ‘Australia 2030: Prosperity Through Innovation’ report that artificial intelligence, notably cyber-physical systems such as the Internet of Things, represents a major opportunity for the Australian economy. The agency stated that the Digital Economy Strategy, to be released later in the year, should aim to make Australia a - [Abolition of the Innovation Patent System May Prove Detrimental to Australian SMEs](https://www.swansonreed.com.au/abolition-innovation-patent-system-may-prove-detrimental-australian-smes/) - The Institute of Patent and Trade Mark Attorneys of Australia (IPTA) has stated that the government’s proposed abolition of the innovation patent system will “seriously disadvantage Australian SMEs attracting finance to commercialise their innovations by removing the simplest and lowest cost means of protecting their intellectual property.” The Innovation Patent System (IPS) was introduced in - [Researchers deploy unmanned Sail Drones as an Australian first science mission](https://www.swansonreed.com.au/researchers-deploy-unmanned-sail-drones-australian-first-science-mission/) - Researchers from CSIRO are beginning an Australian first science mission to deploy ocean surface unmanned Sail Drones to sail the world. Typical research vessel ships cost tens of thousands of dollars per day to operate and require several on-board staff and researchers to operate equipment and collect data. However sail drones are unoccupied sail crafts - [Innovative technology allowing bikes to communicate with cars](https://www.swansonreed.com.au/innovative-technology-allowing-bikes-to-communicate-with-cars/) - The innovative communication company, Trek and Tome are working on an AI-based bicycle-to-vehicle (B2V) communication system which will allow bicycle riders the ability to detect when a vehicle is close by or approaching. A further component to developing this innovative product is to include Cellular Vehicle-to-Everything technology (C-V2X), which would let vehicles communicate with other - [Toyota unleashes new purpose for self driving vehicles](https://www.swansonreed.com.au/toyota-unleashes-new-purpose-self-driving-vehicles/) - Toyota has announced that they will be releasing electric self driving vehicles that will be tailored for companies to use ride-sharing and package delivery services. This new development in car manufacturing underscores how automakers are no longer simply building cars but also providing services to go with them. Toyota has grand plans to start testing - [Gaming Industry R&D focus is picking up in SA](https://www.swansonreed.com.au/gaming-industry-rd-focus-is-picking-up-in-sa/) - Gaming industry professionals in South Australia are excited to hear that Government support for game development is finally picking up and the gaming industry is receiving the long awaited recognition it has been longing for. This comes after South Australia was approved to receive a $2 million game developers R&D space in Adelaide, courtesy of the - [Amazon.com.au May Boost Innovative Aussie Businesses](https://www.swansonreed.com.au/amazon-com-au-may-boost-innovative-aussie-businesses/) - Amazon, the world’s largest online shopping company, has finally launched its Australian retail site. While the initial response was underwhelming, with visitors to the site complaining that there was a lack of stock selection and the discounts were not significant, it has been estimated that Amazon will undercut Australian retailers by 30 percent. Moreover, the - [Australia Positioned To Become A Leader in Lightweight Cars](https://www.swansonreed.com.au/australia-positioned-become-leader-lightweight-cars/) - Australia’s automotive industry is going through major structural change with the imminent closure of car manufacturers. To take its place, Australia aims to move from the production of vehicles to the exporting of engineering services and innovative product solutions. Thanks to a new project, it may very well become a leader in lightweight car technology. - [R&D securing your company's competitive position in the market](https://www.swansonreed.com.au/rd-securing-your-companys-competitive-position-in-the-market/) - An exciting time lies ahead for the research and development (R&D) industry as Sydney will soon be home to BT’s new global cyber security R&D centre, facilitating 172 additional skilled jobs over the next five years. The R&D hub is an expansion to BT’s existing Security Operation Centre (SOC) in Berry Street and will be the - [New Australian R&D defence centre showing success already](https://www.swansonreed.com.au/new-australian-rd-defence-centre-showing-success-already/) - Lockheed Martin Australia is an industry leader in defence and technology, bringing leading edge concepts and technology to Australia in the fields of aeronautics, maritime, land, surveillance, cyber, space, C4ISR and civil domains. The company has opened their research and development facility ‘STELaRLAB’ in Melbourne and have partnered with Australia’s finest minds and academic institutions - [Pharma stocks to invest in based on R&D spending levels](https://www.swansonreed.com.au/pharma-stocks-to-invest-in-based-on-rd-spending-levels/) - Continued research and development (R&D) is a must in the pharmaceutical industry as even the biggest blockbuster drugs eventually lose patent exclusivity or face new and improved competition. However throwing money into R&D alone doesn’t guarantee success, it is vital to also make smart investments into companies which are successfully incorporating R&D into their business - [Rheinmetall Defence Australia $80m R&D project](https://www.swansonreed.com.au/rheinmetall-defence-australia-80m-rd-project/) - Rheinmetall Defence Australia (RDA) has announced a five year research and development plan to invest $80 million into product and technology development as part of the AIC program for Land 400 Phase 2. In addition to this, there is also scope for a further $120 million in funding should the company be successful in Phase - [$5 million research and development project in WA](https://www.swansonreed.com.au/5-million-research-and-development-project-in-wa/) - Western Australia will soon be home to a world class grains research and development hub to develop research in crop pathology and genetics. The research project was announced on Wednesday 3 August by the deputy Prime Minister and Minister for Agriculture and Water, alongside West Australian Minister for Agriculture and Food. The project has received - [Plans For New R&D Conglomerate To Commercialise Australian Technologies](https://www.swansonreed.com.au/plans-new-rd-conglomerate-commercialise-australian-technologies/) - A new group, Element 8, will soon launch a research and development conglomerate. The group will aim to prevent Australian inventions being leaked overseas by changing the way that technologies are commercialised here. Backed by international scientific names such as Brock Reeve, Executive Director of Harvard University’s Stem Cell Institute, it could become the top - [Boeing R&D centre opening at The University Of Queensland](https://www.swansonreed.com.au/boeing-rd-centre-opening-at-the-university-of-queensland/) - There are exciting times ahead for the The University of Queensland, as Boeing research and technology Australia has relocated its team into a new research and development centre within the University St Lucia campus. This is the first time in the Asia-Pacific region that Boeing has co-located research within a university. Boeing has been in - [R&D tax offset for foreign companies](https://www.swansonreed.com.au/45-foreign-rd-tax-offset/) - The Australian 43.5% R&D tax offset is available to some foreign companies who undertake R&D in Australia. Who is eligible? Foreign entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment in Australia. What’s it worth? The amount that a - [R&D Tax Incentive For Farming](https://www.swansonreed.com.au/rd-tax-incentive-farming/) - Investing in R&D is crucial to Australia’s agricultural future. The R&D Tax Incentive encourages companies to participate in experimental activities that may not have been undertaken otherwise. The farming sector must innovate to tackle issues arising from fast-increasing global populations and the impact of climate change. Professor Kingwell from the University of Western Australia has - [Boosting Innovation in the Defence Industry](https://www.swansonreed.com.au/boosting-innovation-in-the-defence-industry/) - Last year, the Australian government committed over $1 billion to new defence centres in an attempt to advance innovation and drive the Australian defence sector into the international market. $540 million will go towards next-generation technology and a Defence Innovation Hub will be part of a 10-year investment, which aims to nurture collaborative innovation and - [University of Queensland Secures $22.6 Million in Research Grant Funding](https://www.swansonreed.com.au/university-of-queensland-secures-22-6-million-in-research-grant-funding/) - The University of Queensland (UQ) has secured more research project funding than any other university from the Australian Research Council (ARC) grants. A total of $22.6 million was announced for 17 projects, including biotechnology, cultural history, quantum systems, antibiotic resistance and ecological impacts of cattle production. UQ ranked second for total funding. 14 new Future - [ATO ID 2015/5 Research and Development: Disposal of research & development results and future payments](https://www.swansonreed.com.au/research-and-development-disposal-research-development-results-future-payments/) - Does the disposal of research and development (R&D) results provision in section 355-410 of the Income Tax Assessment Act 1997 (ITAA 1997) include amounts from the licensing of intellectual property (IP) payable in the future, subject to achieving future development and sales milestones? Yes. The disposal of R&D results provision in section 355-410 of the ITAA 1997 - [Clinical Trials R&D Tax Incentives](https://www.swansonreed.com.au/rd-tax-incentives-for-clinical-trials/) - A report of Australian clinical trial costs is flawed according to Industry claims. The report on the global competitiveness of 14 countries came out this time last year, in which Australia was ranked as the second most expensive country to run clinical trials. Australian R&D Industry representatives are now making noise in response to the report. - [Claiming a Grant Plus the R&D Tax Incentive – How The ClawBack Adjustment Works](https://www.swansonreed.com.au/grant-tax-clawback-adjustment/) - In our previous post, we paralleled government grants versus the tax system in accessing R&D funding. However, it is a little-known fact that companies can actually claim both concurrently. If you are eligible for the R&D tax incentive and you receive a government recoupment (such as a government grant or reimbursement) that relates to expenditure - [Australia’s R&D Tax Cash Benefit Tops OECD Comparison](https://www.swansonreed.com.au/australias-rd-tax-cash-benefit/) - Undeniably, policies aimed at growing national research and development (R&D) activity is now a central element of national tactics to increase productivity, long run economic growth and international competitiveness in most countries. According to the OECD, the largest amount of R&D tax support, in relative terms, was provided by the Netherlands with 87% as percentage of total - [Omnibus Bill - Reduction in R&D Tax Offset Rate](https://www.swansonreed.com.au/omnibus-bill-reduction-in-rd-tax-offset-rate/) - The Omnibus Bill passed both houses of parliament last week and included $6.5 billion of savings measures. Included within these measures was a uniform 1.5% reduction in the R&D Tax Offset rates applying for income years starting on or after 1 July 2016. Whilst returning the budget to surplus is an important task for the - [What is R&D Tax Refund Financing?](https://www.swansonreed.com.au/what-is-rd-tax-refund-financing/) - In today’s economic climate, cash flow management remains vital to the health of businesses. The universal business aphorism, “turnover is vanity, profit is sanity but cash is reality” continues to be sage advice for anyone managing company financing. In fact, one in five (20.3 per cent) of Australian businesses believe an inability to access funds - [Why R&D Should Be on Your Company’s New Year Resolution List](https://www.swansonreed.com.au/why-rd-should-be-on-your-companys-new-year-resolution-list/) - Indeed, the start of a new year often signifies the beginning of an onslaught of resolutions. Whilst breaking a coffee addiction, hitting the gym or eating clean are often the personal innovations that plague resolution lists, the goals of a company shouldn’t be left off the agenda. In particular, innovation, much like resolutions, helps to refresh, - [Will ISA Impact the R&D Tax Incentive?](https://www.swansonreed.com.au/will-the-new-government-body-isa-impact-the-rd-tax-incentive/) - In the interest of echoing the mining boom with a more perpetual “ideas boom”, the government released its flagship Innovation Statement on Monday this week. The Innovation Statement revolves around four chief areas: culture and capital, collaboration and skills, incentivising risk and government as an exemplar. In particular, key elements of the agenda comprise of - [Navigating Our Uncertain Future: The Function of R&D and Innovation](https://www.swansonreed.com.au/csiros-new-report-pushes-innovation-rd/) - The mining boom, coupled with an extended period of high commodity prices, facilitated a strong level of economic growth in Australia in recent decades. However, as the mining boom diminishes and the country pursues a transition to a knowledge-based economy, we face an uncertain future according to CSIRO's latest report. The report, titled Australia 2030: - [Are Australia's Capital-Disciplined Start-Ups a New Niche?](https://www.swansonreed.com.au/are-australias-capital-disciplined-start-ups-a-new-niche/) - From ravenous sharks and fanged snakes to fractious crocodiles and deadly spiders – there is no denying Australian’s enjoy the odd boast about how lethal our animals are and just how tough we are as a nation. However, could this underlying imperturbable attitude embodied in our culture work in Australia’s favour as we move towards - [R&D Tax Incentive Deadline Looms](https://www.swansonreed.com.au/rd-tax-incentive-deadline/) - ‘Innovation’, the term alone has somewhat formed a place in the Australian vernacular in recent months. The buzzword skyrocketed into popularity when Prime Minister Malcolm Turnbull issued its National Innovation and Science Agenda in December, detailing plans to increase innovation, entrepreneurship and reward risk tasking. Thus, with Australia embarking on an ‘ideas boom’ in 2016, - [Mature Companies vs Start-ups: R&D Tax Incentive Benefits](https://www.swansonreed.com.au/mature-companies-vs-start-ups-rd-tax-incentive-benefits/) - In today’s modern society, businesses are moving at an accelerated pace and bigger companies are facing threats from smaller, digital competitors. At present, few companies can escape the all-pervasive impact of digital disruption as it streamlines business relationships, overhauls logistics processes and revolutionises markets across every sector. Yet, when an organisation matures to a medium or large concern, - [Pointers for Start-Ups on Claiming the R&D Tax Incentive](https://www.swansonreed.com.au/pointers-for-start-ups-on-claiming-the-rd-tax-incentive/) - There is no denying that the buzz word, ‘start-up’ has become politically fashionable as Malcom Turnbull increasingly broadcasts his enthusiasm for an innovative Australian culture. With no signs of slowing down on the innovation agenda, this week marked the beginning of ‘Start-up Week’. Another motion leading to huge expectations of the Turnbull government’s Innovation Statement due - [Tech Investors Push for Tax Breaks](https://www.swansonreed.com.au/tech-investors-push-tax-breaks/) - Should technology investors get access to the same tax breaks as property investors? They already get R&D tax credits but do investors in start-up tech companies deserve more? - [The R&D Tax Incentive for SMEs: Breaking Down the Barriers of Innovation](https://www.swansonreed.com.au/the-rd-tax-incentive-breaking-down-the-barriers-of-innovation-for-smes/) - “Embrace technology disruption” - the phrase has been heavily bandied about in public discourse lately after Turnbull announced the expression in his first statement after being elected Liberal leader last year. Although generally pertaining to the topic of Turnbull’s ‘Idea Boom’ or about shifting the culture of Australia, a new report reveals Australian small and - [Australia Launches First IoT Innovation Hub in Sydney](https://www.swansonreed.com.au/innovation-hub-sydney/) - Smart kettles, fridges that keep tabs on when the milk is going off, tweeting catflaps, connected keyless locks that let your cleaner in but keep your mother-in-law out — the Internet of Things (IoT) is, as they say, most definitely a thing. Whether it’s on the consumer side of wearable tech, such as gadgets that measure your - [Why Should You Employ an R&D Tax Specialist?](https://www.swansonreed.com.au/why-should-you-employ-an-rd-tax-specialist/) - The preparation of a Research and Development (R&D) Tax Incentive Registration form can often act as a catalyst for feelings of confusion and dread for applicants. The delicate gamble between how much to claim can ultimately spur risk aversion – claim too much and risk an audit, claim too little and risk losing money on - [How Valuable is Australia’s Refundable R&D Tax Offset on a Global Scale?](https://www.swansonreed.com.au/how-valuable-is-australias-refundable-rd-tax-offset-on-a-global-scale/) - Ultimately, investing in research and development (R&D) is key to increasing innovation, productivity and competitive advantage. It is not only beneficial for businesses, but is also advantageous for the economy of our country. In fact, for many multinational companies, Australia has become the centre of their global R&D activities. This is primarily due to a - [How Can Companies Cross the 'Valley of Death?'](https://www.swansonreed.com.au/valley-of-death/) - The valley of death, whilst the expression may spur images of dystopian lowland, the meaning is far less sinister – nonetheless, bridging it can be a nightmare. For those who are unaware, the commercialisation of innovation is often caricatured as the melancholic term, ‘the valley of death’. In relation to this, the 2015 Australian Innovation - [CSL Urges R&D Tax Incentive Safeguard](https://www.swansonreed.com.au/csl-urges-rd-tax-incentive-safeguard/) - In launching the innovation and science agenda in December, the Australian Government announced that they would be undertaking a review of the R&D Tax Incentive programme. At present, the review is currently ongoing by a panel led by Bill Ferris and it is expected to report to Government in April 2016. However, the announcement of a - [Future OECD Countries R&D Spending](https://www.swansonreed.com.au/oecdspending/) - At a time when aging populations and the environmental challenges of climate change are in need of innovative solutions the decline in public-backed science and technology research is a concern. Data from the Organisation for Economic Co-operation and Development (OECD) shows the first fall of R&D spending in government - [Goodman Fiedler Wattie Ltd v Federal Commissioner of Taxation [1991] FCA 206](https://www.swansonreed.com.au/goodman-fiedler-wattie-ltd-v-federal-commissioner-of-taxation-1991-fca-206/) - The issues in these appeals was the disallowance by the Commissioner of deductions claimed by the taxpayer for the income year 1982-85 inclusive. The deductions fell into two categories; payments made by the taxpayer to fund research carried on by the Queensland Institute of Technology (QIT) (the first period); and expenditure incurred thereafter by the taxpayer - [Boral Windows and Ors v Industry Research & Development Board and Ors [1998] ATC 4479](https://www.swansonreed.com.au/boral-windows-and-ors-v-industry-research-development-board-and-ors-1998-atc-4479/) - This case is between Boral Windows Ptd Ltd (“First Applicant”), Gas Corporation of Queensland Ltd (“Second Applicant”) and Allen Taylor & Company Ltd (“Third Applicant”) and the Industry Research & Development Board (“First Respondent”), the Tax Concession Committee (“Second Respondent”) and the Secretary, Department of Industry Science & Tourism (“Third Respondent”) and the Commonwealth of - [Mount Owen Pty Ltd and Innovation Australia [2013] AATA 573](https://www.swansonreed.com.au/mount-owen-pty-ltd-and-innovation-australia-2013-aata-573/) - The recent AAT decision, Mount Owen Pty Ltd and Innovation Australia [2013] AATA 573 was a well resourced AAT case that related to the R&D activities conducted by a large coal producer. It is relevant to companies that conduct R&D activities in a production environment. It is important to note that although the case references the Applicant - [Ozone Manufacturing vs Commissioner of Taxation: Lessons in good record-keeping [2013] AATA 420](https://www.swansonreed.com.au/ozone-manufacturing-vs-commissioner-of-taxation-lessons-in-good-record-keeping-2013-aata-420/) - In the case of Ozone Manufacturing Pty Ltd v Commissioner of Taxation, the Administrative Appeals Tribunal has affirmed the Commissioner’s decision to refuse a taxpayer’s claim for a tax offset under s 73I ITAA 1936 for the 2001-2002 tax offset year. Background In 2002, the company registered its R&D activities with"AusIndustry. In its 2001-02 tax return, - [Desalination Technology Pty Ltd v Commissioner of Taxation [2013] AATA 846](https://www.swansonreed.com.au/desalination-technology-pty-ltd-v-commissioner-of-taxation-2013-aata-846/) - Federal Court Decision - FCT v Desalination Technology Pty Ltd Click Here Full Federal Court Decision - FCT v Desalination Technology Click Here This article is about the original Administrative Appeals Tribunal decision on matters of fact. Please click here if you would like to access the Federal Court Appeal. In the matter of Desalination Technology - [Industry Research & Development Board v Unisys Information Services Australia Pty Ltd [1997] FCA 777](https://www.swansonreed.com.au/industry-research-development-board-v-unisys-information-services-australia-pty-ltd-1997-2-fca-777/) - In the case of Industry Research & Development Board v Unisys Information Services Australia, the Commissioner ruled in favour of the Administrative Appeals Tribunal (AAT), finding that there was no intention to exclude the de minimis principle in the interpretation of sections 705-35 and 104-626 of the Income Tax Assessment Act 1997 (ITAA 1997). Background - [Industry Research and Development Board [2000] FCA 979](https://www.swansonreed.com.au/industry-research-and-development-board-v-coal-allied-operations-pty-ltd-2000-fca-979/) - In the matter of Industry Research and Development (IR&D) Board v Coal & Allied Operations (C&A), the federal court ruled in favor of C&A, dismissing the IR&D Board’s application. Background: The IR&D Board declined to give a certificate in respect of some of C&A's activities, which C&A claimed were "research and development activities". The facts - [Industry Research & Development Board v Bridgestone Australia Ltd [2001] FCA 954](https://www.swansonreed.com.au/industry-research-development-board-v-bridgestone-australia-ltd-2001-fca-954/) - In the case of Industry Research & Development Board (IRDB) v Bridgestone Australia, the federal court ruled in favour of the IR&D Board allowing the appeal against Bridgestone. The federal court requested that the matter be remitted to the AAT to be heard and determined again by the Tribunal in accordance with law. Background: This - [Industry R&D Board v Phai See Investments Pty Ltd [2001] FCA 532](https://www.swansonreed.com.au/industry-rd-board-v-phai-see-investments-pty-ltd-2001-fca-532/) - In the case of the Industry R&D Board v Phai See Investments Pty Ltd [2001] and Industry Research and Development Board v Mainstar One Holding Pty Ltd [2001], the federal court ruled in favour of Phai See and allowed Mainstar’s application. Background: Phai See and Mainstar applied to the IR&D Board for registration in respect - [Charles IFE Pty Ltd v Industry R&D Board [1995] AATA 224](https://www.swansonreed.com.au/charles-ife-pty-ltd-v-industry-rd-board-1995-aata-224/) - In the matter of Charles IFE Pty Ltd v Industry R&D Board [1995], the Administrative Appeals Tribunal (AAT) assessed the decision of the IR&D Board that activities which Charles IFE Pty Ltd were undertaking did not satisfy the definition of R&D in Section 73B(1) of the Income Tax Assessment (ITA) Act 1936. Background: Charles IFE - [Fermenter; Distiller v Industry Research and Development Board [2000] AATA 888](https://www.swansonreed.com.au/fermenter-distiller-v-industry-research-and-development-board-2000-aata-888/) - In the matter of “Fermenter”, “Distiller” and Industry Research and Development (IR&D) Board, the Administrative Appeals Tribunal (AAT) assessed the decision of the IR&D Board regarding the applicants entitlement to a favourable certificate under s. 39L of the Industry Research and Development (IR&D) Act 1986. Background: The first applicant, “Fermenter” was concerned in a project - [Mobil Oil Australia Ltd v Industry R&D Board [1995] AATA 133](https://www.swansonreed.com.au/mobil-oil-australia-ltd-v-industry-rd-board-1995-aata-133/) - In the matter of Mobil Oil Australia Ltd v Industry R&D Board, the Administrative Appeals Tribunal (AAT) assessed whether activities undertaken by Mobil Oil met the eligibility requirements of R&D under s. 73B (1) of the Income Tax Assessment (ITA) Act 1986. Background: Mobil Oil Australia Ltd sought a review of part of a decision - [Commissioner of Taxation and Zoffanies Pty Ltd [2002] AATA 758](https://www.swansonreed.com.au/zoffanies-pty-ltd-commissioner-taxation-2002-aata-758/) - This matter concerns an application made by Zoffanies to the Administrative Appeals Tribunal (AAT) for the review of a decision of the Commissioner of Taxation to disallow Zoffanies objection against an Income Tax Assessment for the Substituted Accounting Period ending on 30 September 1992 (in lieu of the year ending on 30 June 1992). Background: - [BAE Systems Australia Pty Ltd v Commissioner of Taxation Australia [2008] FCA 18](https://www.swansonreed.com.au/bae-systems-australia-pty-ltd-v-commissioner-of-taxation-australia-2008-fca-18/) - In the matter of BAE Systems Australia Pty Ltd v Commissioner of Taxation, the Federal Court of Australia (FCA) reviewed whether the applicant, BAE Systems, is entitled to deductions under s 73B of the Income Tax Assessment (ITA) Act 1936. Background: The applicant taxpayer appeals from the Commissioner’s disallowance of objections made by the applicant - [Tier Toys Limited v Commissioner of Taxation [2014] AATA 156](https://www.swansonreed.com.au/tier-toys-limited-v-commissioner-of-taxation-2014-aata-156/) - The AAT has upheld the Commissioner’s decision to reduce a taxpayer’s claim for the research and development (R&D) tax offset because the latter could not prove that the disputed expenditure was incurred. Facts The taxpayer was incorporated in 2006. It registered its R&D project for the 2006/07 income tax year with AusIndustry. The R&D activities - [IR&D Board v IMT Ltd [2001] FCA 85](https://www.swansonreed.com.au/ird-board-v-imt-ltd-2001-fca-85/) - The respondent (IMT) brings a motion seeking an order that the matter be remitted to the Administrative Appeals Tribunal (AAT), as originally constituted (subject to the availability of the relevant members) to be determined according to law without the hearing of further evidence other than as determined by the AAT. Background: The motion arises as - [North Broken Hill Ltd v Industry R&D Board [1993] AATA 254](https://www.swansonreed.com.au/north-broken-hill-ltd-v-industry-rd-board-1993-aata-254/) - The AAT has upheld the IR&D Board’s decision that North Broken Hill’s activities in designing and implementing the Product Tracking System were not research and development activities for the purposes of section 73B of the Assessment Act.. Facts The Commissioner of Taxation requested the IR&D Board to give him a certificate stating whether a project, - [Is the R&D Tax Offset Refundable in Cash?](https://www.swansonreed.com.au/rd-tax-offset-refundable-in-cash/) - Despite the fact that the Research & Development (R&D) tax incentive claim process can seem quite convoluted, the benefits of doing it properly are well worth the effort. But just how exactly is the benefit calculated and what do business owners gain in pocket? The answer to this depends greatly on the size and nature - [How Start-ups Can Benefit From the Overlooked R&D Tax Incentive](https://www.swansonreed.com.au/startups-benefit-from-overlooked-rd-tax-incentive/) - From finding a $20 note in your back pocket to discovering a gold mine of spare change lurking in the cushions of your sofa, undeniably, the act of finding money is exhilarating. Your mind wanders as you begin to envision the endless possibilities available to you and your new found money. However, in the back - [Policy Changes: Driving Innovation or a Reaction to Trends?](https://www.swansonreed.com.au/medtech-innovation-trends/) - Using the medical technology (medtech) industry as an example, we pose the question: do policy changes fuel innovation, or are they merely a reaction to emerging trends? Over the last three decades, medical technologies have transformed many previously untreatable diseases into manageable long-term conditions. However, as the global disease burden evolves there is a continuing need - [Overcoming the Bottlenecks in Financing Innovative Start-Ups](https://www.swansonreed.com.au/overcoming-the-bottlenecks-in-financing-innovative-start-ups/) - Undeniably, we live in the so called “digital age”. Innovation has formed an important role in our modern society and has been touted as the blueprint to success by the Turnbull government. It plays a key role for medical and environmental improvements, and by its commercialisation, the digital industry also has potential material economic impact. - [App Developers, Have You Considered the R&D Tax Incentive?](https://www.swansonreed.com.au/app-developers-have-you-considered-the-rd-tax-incentive/) - By 2020, 70 percent of the population will have smartphones. Accordingly, the dominant presence of smartphones is greatly expanding the scope of mobile phone software development. The “App Economy”, as it is branded, is indeed mounting as it intertwines with the phenomenal increase in mobile phone penetration. As a result, mobile application development has emerged - [St Patrick’s Day Special: Could You Be Claiming the R&D Tax for Beverage Innovation?](https://www.swansonreed.com.au/st-patricks-special/) - March 17th, the annual holiday honouring Irish heritage—or of a cartoon version thereof anyway—is indeed a day worth celebrating for the makers and purveyors of whiskey, beer and green attire. However, holiday or not, the whiskey beverage industry may already be celebrating due to a soar in popularity in recent years. In fact, Australians now - [Architecting the Internet of Things (IoT): How the R&D Tax Incentive Can Help](https://www.swansonreed.com.au/iot-rd-tax-incentive/) - In Australia, the discourse of business and government is rife with mentions to innovation, disruption and dexterity. As a result, the policy settings of government and our macroeconomic environment has seen a shift in the traditional backbone of our economy. We’ve moved from a mining-led economy to one which is increasingly driven by technology and - [Can the R&D Tax Incentive Offset Deindustrialisation?](https://www.swansonreed.com.au/rd-tax-incentive-offset-deindustrialisation/) - In the contemporary period, the idea of a ‘national economy’ in Australia is continually reinforced by national discourses of competitiveness and innovation. Our past, as described by Turnbull in his idea’s boom speech, has relied too much on the mining boom and has subsequently condensed other industries. However, unless there is a leap in investment - [New Tax Incentives for Start-Ups & Investors](https://www.swansonreed.com.au/new-tax-incentives-startups/) - In a proposition to develop the economy away from a reliance on mining, the Australian government launched the National Innovation and Science Agenda (NISA) last December. Now, the Turnbull government has followed through on the agenda’s proposal to offer tax incentives to entrepreneurs and start-ups. The Bill, coined the Tax Laws Amendment (Tax Incentives for Innovation) - [One Month Left Till the R&D Tax Incentive Deadline: What Do You Need To Do Claim?](https://www.swansonreed.com.au/one-month-left-to-lodge-an-rd-tax-incentive-claim-what-do-you-need-to-do/) - With the deadline for claiming the R&D tax incentive looming on April 30, companies must act quickly to ensure they don’t miss out on potentially significant tax benefits. In essence, any Australian firm developing or improving products, processes, or software, may be eligible. However, as at June 2014, fewer than 12,000 performing entities had registered for - [A Snapshot of the R&D Tax Incentive](https://www.swansonreed.com.au/rd-tax-incentive-snapshot/) - With the 30 April deadline to register fast approaching, firms need to review their eligibility and start working on their application as soon as possible, or risk missing out. In light of this, we’ve provided a snapshot of the program and the eligibility requirements. The research and development (R&D) tax incentive came into effect on - [Is your Company Eligible for the R&D Tax Incentive?](https://www.swansonreed.com.au/is-your-company-eligible-for-the-rd-tax-incentive/) - Historically, the R&D tax incentive was formed with a key goal of making government investment for innovation more attainable to small businesses. Innovation, as a whole, impels small business to invest up front in their ideas. However, the aid of a refundable tax offset has helped to considerably alleviate the risk. In fact, the number of companies accessing - [What Could Australia Learn From Sweden's Innovation Model?](https://www.swansonreed.com.au/innovation-sweden-australia-learn/) - A century ago, Sweden was among the poorest nations in Europe. It’s a small country, home to just 0.13 per cent of the global population. Yet today, it is a world leader in innovation. In fact, the Innovation Union Scoreboard 2010, an index published by the European Commission, ranks Sweden as the leading country for - [Two New Tax Incentives for Startups Confirmed](https://www.swansonreed.com.au/two-new-tax-incentives-startups-confirmed/) - Customarily, when people consider innovation they often concentrate on the end product – i.e. the app, the software or the piece of hardware. However, they generally dismiss the steps beforehand that are essential in developing the aforementioned innovative artefact. In particular, policies can play a large part in the innovation process. In relation to this, - [The Importance of Innovation in the Manufacturing Sector…](https://www.swansonreed.com.au/importance-innovation-manufacturing-sector/) - A characteristic feature of economic booms is that those caught up in the commotion believe they will go on perpetually. In this regard, Australia’s recent mining boom was no exception. Following the pattern of resource-based economies, a commodity price hike increased our terms of trade without any special effort on our part — adding 15 per - [The Fundamentals of Claiming Overseas R&D](https://www.swansonreed.com.au/fundamentals-claiming-overseas-rd/) - Investing in research and development (R&D) is key to increasing innovation, productivity and competitive advantage. It is not only beneficial for businesses, but is also advantageous for the economy of our country. In fact, for many multinational companies, Australia has become the centre of their global R&D activities. This is primarily due to a highly - [Greens Call for Increased Agriculture R&D in Their 2016 Election Policy](https://www.swansonreed.com.au/greens-rd/) - As Australia barrels towards an election on July 2, major parties have been announcing excerpts of their policies as the week progresses. Most recently, the Greens have unveiled their election policy for 2016, boasting a large focus on agriculture and abandoning the higher taxes for working holidaymakers (“backpackers tax”). However, the centrepiece of the Green’s policy was a - [The Importance of Risk When Claiming the R&D Tax Incentive](https://www.swansonreed.com.au/importance-risk-claiming-rd-tax-incentive/) - Undeniably, organisations’ innovation activities tend to have higher risk profiles than other pursuits and require different methods for measuring value. The constant need for innovation, change and renewal are business imperatives that cannot be ignored or avoided by any organisation for any sustained period. In fact, the risks associated with an organisation not making changes - [Could You Be Receiving R&D Tax Breaks Earlier?](https://www.swansonreed.com.au/rd-tax-breaks-early/) - Without a doubt, financing is extremely imperative for innovation and development, in particular at the seed and early stages of business development. In spite of the growing importance of entrepreneurial activities, innovative companies face several barriers for accessing finance, such as asymmetric information and financing gaps between investors and entrepreneurs. Indeed, access to finance is - [The Applicant and Industry R&D Board [1999] AATA 468](https://www.swansonreed.com.au/the-applicant-and-industry-rd-board-1999-aata-468/) - This application was brought to the Administrative Appeals Tribunal (AAT) to review a decision by the Industry Research and Development (IR&D) Board, who determined that the applicant did not conduct eligible activities to claim the R&D tax concession. Sub-section 39T(4) of the IR&D Act 1986 provides that the hearing of a proceeding relating to a - [NaughtsnCrosses Pty Ltd v Innovation Australia [2012] AATA 743](https://www.swansonreed.com.au/naughtsncrosses-pty-ltd-v-innovation-australia-2012-aata-743/) - NaughtsnCrosses sought a review by the Administrative Appeals Tribunal (AAT) of a decision made by the IR&D Board and affirmed on internal review by the commissioner of taxation, which deemed activities claimed as R&D by NaughtsnCross as ineligible for the R&D tax incentive. Background NaughtsnCrosses (called Absoft at the time of the events in the - [Confidential v Industry Research and Development (IR&D) Board [1997] AATA 67](https://www.swansonreed.com.au/confidential-v-industry-research-and-development-ird-board-1997-aata-67/) - This application was brought pursuant to s 39T of the Industry Research and Development (IR&D) Act 1986 to review a decision made under s 39L, which was confirmed on review pursuant to subsection 39S(4), the hearing of a proceeding relating to a reviewable decision must take place in private and the applicant will be referred - [RACV Sales and Marketing Pty Ltd v Innovation Australia [2012] AATA 386](https://www.swansonreed.com.au/racv-sales-and-marketing-pty-ltd-v-innovation-australia-2012-aata-386/) - In the matter of RACV Sales and Marketing (RACV) Pty Ltd V Innovation Australia, the Administrative Appeals Tribunal (AAT) has upheld the decision of Innovation Australia that the company’s activities were not research and development (R&D) activities as defined in s 73B(1) of the Income Tax Assessment Act (ITAA) 1936. Background RACV was registered under - ["SREE" v Industry R&D Board [1999]](https://www.swansonreed.com.au/sree-v-industry-research-development-board-1999/) - The taxpayer was a large Australian bank that had spent considerable sums of money on the development of a computer system. It claimed that the money spent should be deductible as R&D within the meaning of s 73B of the Income Tax Assessment Act (ITAA) 1936. The commissioner, after reviewing a determination received from the - [FCT v Desalination Technology Pty Ltd](https://www.swansonreed.com.au/fct-vs-desalination-technology-pty-ltd/) - AAT Decision - Desalination Technology Pty Ltd v FCT Click Here Full Federal Court Decision - FCT v Desalination Technology Pty Ltd Click Here In the case of ‘Commissioner of Taxation Vs Desalination Technology Pty Ltd’, the appeal by the COT was dismissed by the Administrative Appeals Tribunal. This case involved a taxpayer who paid - [Take Advantage of R&D Tax Credit Finance](https://www.swansonreed.com.au/take-advantage-rd-tax-credit-finance/) - Are you making the most of the tax incentives available to you as a business owner? Grants and assistance opportunities, such as the Research and Development (R&D) tax incentive, are available to those involved in eligible R&D activities as a way to offset some of the costs involved in running your business. At Swanson Reed, - [Cairns Could Become Australia’s Innovation Capital](https://www.swansonreed.com.au/cairns-could-become-australias-innovation-capital/) - James Cook University is expanding towards the city centre with the development of a tropical innovation hub. The Cairns Innovation Centre (CIC) project will consist of a $40 million Innovation Lodge, a $50 million Tropical Enterprise Centre and a $33 million Tropical Sports Conditioning Centre. To help drive collaborations in health and education, it will - [Uncertainties Resulting from 457 Visa Changes](https://www.swansonreed.com.au/uncertainties-resulting-from-457-visa-changes/) - Changes to the 457 skilled migration visas are having alarming consequences, with scientists from abroad turning down top positions in the Australian medical research sector. At least six institutes have had job offers rejected following the changes. Other sectors experiencing major issues include companies who recruit international workers for the engineering, IT, finance and education - [A2emCo to Manufacture Australian Electric Vehicles by 2020](https://www.swansonreed.com.au/a2emco-manufacture-australian-electric-vehicles-2020/) - Plans have been made by new company A2emCo to manufacture autonomous electric vehicles in Australia. The prototype has already been designed and CEO Michael Molitor expects the cars to be on the road by Q1 2020. An Australian battery gigafactory is also a possibility. Former head of operations at Tesla, Peter Carlsson, believes that 120-150 - [European Dung Beetles To Help Farms All Year Round](https://www.swansonreed.com.au/european-dung-beetles-help-farms-all-year-round/) - A five-year, $23.7 million dung beetle project has been announced this week that will help control parasites. Two new species of French dung beetle will be provided to over 1,000 livestock producers around south-eastern Australia. The scheme will use dung beetles as ‘ecosystem engineers’ in order to improve the health of soil and pastures and - [15,000 Expected to Attend the 16th CeBIT Technology Forum](https://www.swansonreed.com.au/15000-expected-to-attend-cebit-technology-forum/) - CeBIT is Australia's premier business technology event, connecting technology professionals from established industry leaders and start-ups from around the Asia Pacific region. This year, CeBIT is expecting around 15,000 attendees including 350 exhibitors from 34 countries. Over 50 presentations ranging from digital marketing, user experience, cybersecurity and future workforce planning are scheduled. Eight keynote speakers - [2017 Federal Budget for Small Business](https://www.swansonreed.com.au/2017-federal-budget-small-business/) - Small business has done well in this year's federal budget. To encourage faster growth, an extension of the $20,000 instant asset tax write-off has been granted and a further $300 million will be provided to State Governments to reduce small business compliance costs. Companies will benefit from a $100 million advanced manufacturing fund to drive - [Biotech Industry Wary of Proposed Changes to R&D Tax Incentive](https://www.swansonreed.com.au/biotech-industry-wary-proposed-changes-rd-tax-incentive/) - The Australian biotech industry has concerns about an overhaul of the R&D tax incentive scheme, which could involve eligibility restrictions and cuts. The government has proposed capping R&D tax refunds at $2 million, which could be realised in this month’s federal budget. The uncertainty has already impacted the sector, with both Australian and international companies - [Universities and the Start-up Economy](https://www.swansonreed.com.au/universities-and-the-start-up-economy/) - There are more university graduates than ever and it turns out that they are driving Australia’s start-up economy. A project between Universities Australia and Startup Muster found that 84% of Australian start-up founders have degrees. Many universities have restructured their courses to provide the next generation of graduates with the knowledge and resources to found - [Australia's First Indigenous Innovation Hub Opens in Cairns](https://www.swansonreed.com.au/australias-first-indigenous-innovation-hub-opens-cairns/) - Founded by Indigenous entrepreneurs Leigh Harris and Julie-Ann Lambourne, Digital Hive (DHIVE) aims to achieve social equality in the digital age. The innovation hub opened on May 3 and will enable Aboriginal and Torres Strait Islanders, refugees, recent migrants, people with disabilities or anyone with a social and digital disadvantage to participate in and contribute - [Major Challenges for Australian Innovation](https://www.swansonreed.com.au/major-challenges-for-australian-innovation/) - Innovation is as important as ever, especially for traditional industries. While Australia already has world-class sectors and companies, it is necessary for us to encourage the next generation of great companies. In 2015, Australia was labelled a ‘stall out’ country by Harvard Business Review, meaning a country that evolved quickly in the past but has now - [ANU Poll Reveals Attitudes to Business, Science and Innovation](https://www.swansonreed.com.au/anu-poll-reveals-attitudes-business-science-innovation/) - A poll of 1,202 people by the Australian National University (ANU) found that the majority of Australians strongly value science and innovation. The survey conducted by the ANU Social Research Centre found that Australians understood the importance of research for Australia’s future even if they didn’t feel confident when it came to adapting to technological - [May 1 Registration Deadline for R&D Tax Incentive](https://www.swansonreed.com.au/may-1-registration-deadline-rd-tax-incentive/) - The registration deadline for the R&D tax incentive is less than a week away. This year, registrations are due on Monday, 1 May 2017, as 30 April falls on a Sunday. Companies who cannot lodge their application before this date can contact AusIndustry to request an extension. If received before the deadline, the business may - [Australia’s Cyber Security Sector Could Triple by 2026](https://www.swansonreed.com.au/australias-cyber-security-sector-triple-2026/) - The Australian Cyber Security Growth Network (ACSGN) estimates that Australia’s cyber security sector will triple in the next decade, reaching revenues of $6 billion by 2026. By 2020, the global cyber security market could be worth $170 billion US. On 20th April, the Australian Government launched its Cyber Security Sector Competitiveness Plan (SCP), which aims - [NASA Launches Three Australian Satellites](https://www.swansonreed.com.au/nasa-launches-three-australian-satellites/) - Until now, only two Australian satellites had been launched into space, one in 1967 and one in 2002. Yesterday, three more were sent aboard a NASA Atlas V rocket from Cape Canaveral Air Force Station in Florida. As part of the QB50 international project, the nanosatellites will join a total of 50 CubeSats. They will - [Apple's ambitious R&D spending continues to increase](https://www.swansonreed.com.au/apples-ambitious-rd-spending-continues-to-increase/) - After spending the highest annual amount on research and development ever, apple shows no signs of slowing down in its R&D investment for 2017 despite a drop in the company’s overall revenue. In 2016, Apple spent $10.39 billion on R&D which was a significant increase, over $2 billion, from the previous year. This equates to 5% of its total net sales - [3D Printing for Product Development](https://www.swansonreed.com.au/3d-printing-for-product-development/) - 3D printing may become a key player when it comes to future innovation and growth and is often eligible for the R&D tax credit. Designers often buy 3D printers in order to build a new product and bring their designs to life, effectively allowing product designers to become manufacturers. These special printers increase the flexibility - [Australian transport centre receives $55 Million R&D funding](https://www.swansonreed.com.au/australian-transport-centre-receives-55-million-rd-funding/) - iMove CRC, a national intelligent transport R&D centre, has received the green light by the Federal Government and will be funded a $55 million grant over a ten year period. The generous grant will support the company’s new innovative transport centre, which works to develop smarter solutions to resolving road congestion and public transport issues. - [How Does Australia Rank For Innovation?](https://www.swansonreed.com.au/how-does-australia-rank-for-innovation/) - Australia's Rank for Innovation "Input" and "Output" Research indicates that Australia underperforms when it comes to commercialising its strong research base. A recent OECD paper found that Australia is behind in the technology race for what is termed “innovation output,” or exchanging knowledge and developing ideas to address a specific problem. Despite this, Australia performed - [ATO to review R&D Tax Incentive for construction activities](https://www.swansonreed.com.au/ato-review-rd-tax-incentive-construction-activities/) - The arrangements of certain building and construction industry participants that are claiming the R&D Tax Incentive are being reviewed by the ATO and AusIndustry.The arrangements under review concern R&D claimants who are involved in either: Acquiring buildings or extensions Alterations or improvements Constructing, extending, altering or improving buildings. The review applies for instances where some - [R&D tax update - Issues relevant to building & construction claims](https://www.swansonreed.com.au/rd-tax-update-issues-relevant-to-building-construction-claims/) - The following R&D tax update seeks to provide information on recent developments affecting the operation of the incentive, and compliance issues relevant to the building and construction industry. Recent R&D Tax Offset and Income Tax Rate Changes The Budget Savings (Omnibus) Bill 2016 passed both houses of parliament in September 2016. Included within the Bill’s range - [Taxpayer alert released by ATO for Software R&D Activities](https://www.swansonreed.com.au/taxpayer-alert-released-by-ato-software-rd-activities/) - The Department of Industry, Innovation and Science and the Australian Taxation Office (ATO) have recently released joint taxpayer alerts on a range of R&D Tax issues. The alerts have highlighted issues identified by the ATO and AusIndustry, such as: Activities registered being ordinary business activities that are not eligible for the R&D Tax Incentive; Expenses included in - [R&D Tax Incentive for ordinary business activities under ATO review](https://www.swansonreed.com.au/rd-tax-incentive-for-ordinary-business-activities-under-ato-review/) - Business operators and advisors are being warned that the Australian Tax Office (ATO) are reviewing tax incentive claims made for ordinary business activities. The following review is intended to target the misuse of R&D claims, and anyone deliberately exploiting the tax breaks will be pursued in court. Misuse of R&D tax incentives consist - [Ford Invests $450 Million Into Research And Development](https://www.swansonreed.com.au/ford-450-million-research-development-investment/) - In October 2016, Ford Australia permanently ended local manufacturing in Australia which consequently terminated the employment of 580 workers. Ford had been manufacturing locally for 91 years prior to this decision. In 2017, following from this decision, Ford transformed what was previously the Australian head office into the Asia Pacific Product and Development Centre. This - [R&D Revolutionising Australian Wine Industry](https://www.swansonreed.com.au/rd-revolutionising-australian-wine-industry/) - Australia is home to some of the most prestige grapevines, with the Australian Shiraz being one of the oldest in the world. It holds unquestionable value and relevance to the success of Australia’s wine industry. In recognition of the significance which the Australian wine industry holds, a six year R&D invests worth $5.3 Million has - [The Tax Institute 2017 Property and Construction Seminar](https://www.swansonreed.com.au/tax-institute-property-construction-seminar/) - Swanson Reed invites you to attend The Tax Institute's 2017 Property and Construction seminar. Damian Smyth, Principal, and Gloria Lim, Senior Manager, will be presenting an informative session discussing R&D tax incentive issues relevant to the construction industry. About the event The Tax Institute 2017 Property & Construction intensive is the essential professional development seminar for in-house finance - [Australian & Chinese Companies Partner for Renewable Energy](https://www.swansonreed.com.au/companies-partner-renewable-energy/) - CSIRO Partners with Thermal Focus Chinese company Thermal Focus has sought out one of Australia’s leading solar heliostat technology names, CSIRO, to partner for the purpose of increasing the use of renewable energy within the country. This followed China’s announcement to achieve production of 1.4 GW of CTS by 2018 and 5GW by 2020. These - [R&D Tax Incentive Review](https://www.swansonreed.com.au/rd-tax-incentive-review/) - As part of the National Innovation and Science Agenda launched in December 2015, the government instigated a review of the R&D Tax Incentive programme, chaired by Mr Bill Ferris AC (Innovation Australia), DR Alan Finkel AO (Chief Scientist) and Mr John Fraser (Secretary to the Treasury). The review sought to identify opportunities to improve the - [R&D Spending Trends Among the Global Innovation 1000](https://www.swansonreed.com.au/rd-spending-allocation-trends/) - R&D Spending Allocation Trends Strategy&Business conducted a Global Innovation 1000 study of the top public companies spending the most on R&D to strengthen their brand from 2010 to 2015. The study found that while overall R&D spending is increasing, the areas of research and development allocation are shifting towards increased software offerings. Why Shift Towards - [Worldwide Innovation Leaders Come Together Over AI](https://www.swansonreed.com.au/innovation-leaders-together-ai/) - Tech leaders Google, Facebook, Microsoft, Amazon and IBM have joined forces to form the Partnership on Artificial Intelligence to Benefit People and Society (Partnership on AI) announced in September. Just as the name suggests the organization will carry out research and development on artificial intelligence with the fundamental purpose - [How Swanson Reed Can Help You Finance Your R&D Tax Credit](https://www.swansonreed.com.au/how-swanson-reed-can-help-you-finance-your-rd-tax-credit/) - While tax credits can help you free up cash flow and additional resources in the future, they often don’t help you in the here and now. In fact, many companies feel they have to forgo the complicated application process just to keep their businesses running smoothly. However, Swanson Reed, a leading specialist in R&D tax - [Boost Your Competitive Advantage Through R&D](https://www.swansonreed.com.au/business-development/) - Businesses that develop a research and development (R&D) strategy are more likely to grow and succeed. Why is this? In performing R&D, companies must internally review their processes and technologies in order to identify issues. With these weaknesses targeted, both the products and services offered can be improved - [Cutting Renewable R&D Funding in Australia](https://www.swansonreed.com.au/renewable-funding-cut/) - The Omnibus Bill As Australia’s government prepares to cut spending in order to repair the budget the Omnibus bill has been proposed, including in it a $1 billion cut to the Australian Renewable Energy Agency (ARENA) which will effectively eliminate the agency. Without ARENA funding R&D, renewable energy research will grind to a halt - [A Future with Robots](https://www.swansonreed.com.au/future-with-robots/) - Bigger Better Faster Stronger One of the greatest strengths of the human race is our continual practice of innovation - we are always creating newer, better, faster and safer ways of completing the tasks and challenges we face. As robots have become a major topic of conversation many have begun to wonder; will robots be - [Increased R&D Funding for the Beef Industry](https://www.swansonreed.com.au/rd-funding-beef-industry/) - Upping Investment Funding MLA (Meat & Livestock Australia) released plans to increase investment funding in R&D by about AU$100,000 more than the previous year in support of the innovation and development of the grain-fed and grass-fed beef industry sectors. Of this AU$12.7 million, approximately AU$7 million will be focused on research and development (R&D) while the remaining - [Top Five Benefits of R&D Tax Loans](https://www.swansonreed.com.au/top-five-benefits-rd-tax-loans/) - The economy is tough right now. No matter where you are located or what industry you are in, it can be a bit of a gamble when it comes to predicting next month’s profit margins. One thing an economic downturn does create is a slowdown of operations, which can enable you to redirect more manpower - [R&D Tax Funding Strategies for Your Business](https://www.swansonreed.com.au/rd-tax-funding-strategies-business/) - If your business is involved in eligible R&D activities and you are interested in the Research and Development (R&D) tax incentive, our specialised team of R&D tax advisors is here to help. At Swanson Reed, we help companies claim the R&D tax incentive. We prepare over 600 R&D tax claims per year as Australia’s largest - [Innovation: a New Vehicle of Growth for the Australian Economy](https://www.swansonreed.com.au/innovation-a-new-vehicle-of-growth-for-the-australian-economy/) - The Turnbull government is focusing on crowdfunding as a top priority and investing in innovation to move the Australian economy forward. In a recent report by the IMD World Competitiveness Yearbook measuring the global competitiveness of 61 countries, Australia descended to a rank of 18 — indicating a concerning decline over the last five - [Should Australia Mimic the UK’s Tax Breaks? Investors weigh in on the Innovation Agenda.](https://www.swansonreed.com.au/should-australia-mimic-the-uks-tax-breaks-investors-weigh-in-on-the-innovation-agenda/) - From “innovation prime minister” to just plain “IT-savvy”, Malcom Turnbull has been coined various titles since his rise to top job and his promise of an innovation agenda for Australia. Certainly, he has been welcomed with positivity amongst the leadership of the country’s tech and innovation industry. However, Malcolm Turnbull must do more than just - [Is Innovation Simply a Matter of Mind?](https://www.swansonreed.com.au/is-innovation-simply-a-matter-of-mind/) - Last week it was reported that Mr Turnbull ordered Mr Pyne, the Science and Innovation Minister, to release his “inner revolutionary” in order to come up with stronger policies to catapult innovation and to let the Prime Minister worry about the money. However, is creating an innovation economy simply about policies and government funding? Certainty, - [Are Children the Key to Our Innovative Future?](https://www.swansonreed.com.au/are-children-the-key-to-our-innovative-future/) - The youth of today, according to a renowned South Australian academic, should be trained in developing a more creative mindset to assist them in taking advantage of job opportunities in our increasingly innovative economy. Dr David Cropley, the University of South Australia associate professor in engineering innovation, pitched the idea and said that governments were - [When Life Gives You an Innovation Policy, Make Lemonade](https://www.swansonreed.com.au/when-life-gives-you-an-innovation-policy-make-lemonade/) - The next generation of Australian entrepreneurs could stem from a modest, after-school lemonade stand. This is the winning idea by Erin Watson-Lynn and her team at the government’s weekend “hackathon”, which united over 150 people on Saturday from the tech, business and government fields to workshop future innovation policy. Taking inspiration from the United States, - [Shifting the Culture in Australia by Leveraging Creativity, Innovation & Failure](https://www.swansonreed.com.au/shifting-the-culture-in-australia-by-leveraging-creativity-innovation-failure/) - Is interactive whisky the way of the future? Although pixelated alcohol hasn’t been invented yet (unfortunately), the bottle has had a digital makeover. Johnnie Walker has created a bottle which sends personalised communications to the user if they wave a smartphone in front of it, for example a promotional offer or a cocktail recipe. The bottle - [Should Australia Focus on Businesses to Drive Innovation?](https://www.swansonreed.com.au/should-australia-focus-on-businesses-to-drive-innovation/) - The Turnbull government have voiced their opinion on changing Australia to be more innovative, namely by endorsing start-ups. Early this month, Wyatt Roy, the Assistant Minister for Innovation, cited about how Israel transformed itself into a modern economy with more start-ups per capita than any other country, and how Australia could do the same to - [ATO Issues Warning on R&D Claims for Farming Activities](https://www.swansonreed.com.au/ato-issues-warning-on-rd-claims-for-farming-activities/) - The Australian Tax Office and AusIndustry have issued guidance to alert companies against claiming the R&D tax incentive for business-as-usual farming activities. Expanding on this, ATO Deputy Commissioner Tim Dyce said that usual business expenditure is normally not eligible under the incentive and the law contains a number of requirements which must be satisfied in - [How the R&D Tax Credit can help build Australia’s ‘Silicon Harbour’ & Startup Community](https://www.swansonreed.com.au/how-the-rd-tax-credit-can-help-build-australias-silicon-harbour-startup-community/) - Soon to be nestled on the foreshore of the Sydney Harbour is a technology marketplace that rivals the likes of Silicon Valley. That is at least the NSW government’s anticipation for Australia’s first digital district, ‘Silicon Harbour’ - a purpose built hub to unite the global giants of tech world with start-up entrepreneurs, business incubators and - [Why All the Commotion Over Start-Ups?](https://www.swansonreed.com.au/why-all-the-commotion-over-start-ups/) - There is no denying Turnbull has been welcomed with predominantly open arms by the tech industry in Australia. His victory speech alone caused a wave of excitement for the digital community, with him primarily pushing for an innovative Australia that fosters start-ups. However, one may wonder, why all the excitement over start-ups and what about - [Are R&D Tax Breaks for University-Business Partnerships the Key to Australia’s Innovation Agenda?](https://www.swansonreed.com.au/are-rd-tax-breaks-for-university-business-partnerships-the-key-to-australias-innovation-agenda/) - Universities offer a huge potential in shifting the Australian landscape to be more innovative, however, they are currently debilitated by under-funding of research by the government. The value of stock of knowledge generated by university research was estimated at $160 billion in 2014, equivalent to almost 10 per cent of GDP and exceeds the entire - [Australia's Voyage for Innovation, Passport Optional](https://www.swansonreed.com.au/australias-voyage-for-innovation-passport-optional/) - From creating Vegemite and bionic hearing aids to commercialising penicillin and the first notebook, Australia’s past is rich with creations of ‘world firsts’. Now, Australia is looking at being the first in the world to trial passport-less travel. However, is this actually a notable idea or just a bold response to Australia’s publicised lack of - [Is Australia's Approach to Collaboration What Needs Changing?](https://www.swansonreed.com.au/australias-crossroads-is-our-approach-to-collaboration-what-needs-changing/) - A little known fact is that Australians make up less than 0.3% of the world’s population but we account for over 3% of the world’s scientific research output. Certainly, as described in our previous post, Australia has contributed to several ‘world first’ innovations and has a dynamic invention ecosystem. However, the problem Australia faces is - [Should Australia Collaborate with Israel to Push Innovation?](https://www.swansonreed.com.au/what-australia-can-learn-from-israels-start-up-culture/) - With a population of 8.4 million people, Israel has over 3,000 start-ups and attracts more venture capital per person than any other country in the world. Made famous by the worldwide bestselling book Start-up Nation, Israel's start-up culture is indeed among the world’s most effervescent. In fact, Israel boasts twice as many start-ups as Australia with a - [Why Australia Shouldn’t Be a ‘Silicon Valley’, But Rather a ‘Silicon Nation’](https://www.swansonreed.com.au/why-australia-shouldnt-be-a-silicon-valley-but-rather-a-silicon-nation/) - The Sydney Harbour, or coined the soon-to-be “Silicon Harbour”, is anticipated by several to be the natural home for this Australia’s first digital district. However, Sarah Pearson, Chief Executive of the CBR Innovation Network, is confident Canberra could become the hub for start-ups in Australia. Pearson, who recently returned from a trip to Israel led - [Australia: The Early Adopters Who Are Facing the Innovation Valley of Death](https://www.swansonreed.com.au/australia-the-early-adopters-who-are-facing-the-innovation-valley-of-death/) - The valley of death, whilst the expression may spur images of dystopian lowland, the meaning is far less sinister – nonetheless, bridging it can be a nightmare. For those who are unaware, the commercialisation of innovation is often caricatured as the melancholic term, ‘the valley of death’. In relation to this, the 2015 Australian Innovation - [Digital Disruption: A Threat or Opportunity for Mature Companies in Australia?](https://www.swansonreed.com.au/digital-disruption-a-threat-or-opportunity-for-mature-companies-in-australia/) - Gone are the days of playing limbo with landline cables, stretched to their limit, allowing us to hear the daily symphony of modem dial-up. Indeed, digital innovation has accelerated furiously over the past couple of decades. However, what does this mean for the established, mature Australian company? There is no denying that Australia’s timeworn corporate companies - [Could the R&D Tax Incentive Help Us Make Our Own Luck?  ](https://www.swansonreed.com.au/could-the-rd-tax-credit-help-us-make-our-own-luck/) - “The Lucky Country” – the phrase alone has become shorthand for describing our weather, our lifestyle, and our history. However, has our good fortune deterred Australia from innovating? Certainly, there has been no short of articles lately about Australia’s lack of innovation on a global index. Boundaries are blurring and firms in every sector are - [Is the Government Acting Too Hastily on the Innovation Statement?](https://www.swansonreed.com.au/is-the-government-acting-too-hastily-on-the-innovation-statement/) - Vacuuming the house, mowing the lawn, or even waiting for an image-heavy website to load – these are tasks, in an ideal world, which would be performed in haste. However tax policy changes, in particular, is an undertaking that one would hope is executed with time and consideration. In specific, recent updates have prompted the - [Australia to Double Investments in R&D for Clean Energy](https://www.swansonreed.com.au/australia-to-double-investments-in-rd-for-clean-energy/) - Discovering a slab of coal in your Christmas stocking conventionally notions the idea that Father Christmas judges you more naughty than nice. However, could this tradition be an idea of the past as the nation, and the world, moves towards renewable energy? Australia is amongst 20 countries, all of them major economies, who agreed on - [Innovation Culture, Precincts and All That Jazz](https://www.swansonreed.com.au/innovation-culture-precincts-and-all-that-jazz/) - From the earthy harmonies of soul jazz to the sporadic, atonal forays of free jazz - lateral thinking is the key distinguishing element in this type of music. Likewise, building innovation and an entrepreneurial culture could be compared to a form of jazz: it takes a lot of practice, a great deal of mistakes and - [Innovation - Should Agriculture ‘Milk’ the Benefits Too?](https://www.swansonreed.com.au/innovation-should-agriculture-milk-benefits-too/) - By just browsing the ‘innovation’ segment of any news website one may feel bombarded with headlines about digital disruption, coding, technology start-ups and Silicon Valley. Begging the question, where do less (traditionally) tech-savvy industries stand as Australia embarks on an innovation journey? Agriculture, in particular, could largely benefit from a ‘beefing’ up of innovation. Despite - [Highlights of the Innovation Statement](https://www.swansonreed.com.au/highlights-of-the-innovation-statement/) - “Innovation” – the term has essentially become shorthand for all that encompasses future business in Australia since Turnbull’s rise to Prime Minister in September. From doubling investments in research and development (R&D) for clean energy to making coding compulsory in schools, Turnbull has vowed to put innovation at the heart of his Government's agenda. Today, - [How the Innovation Statement Affects the R&D Tax Incentive](https://www.swansonreed.com.au/how-the-innovation-statement-affects-the-rd-tax-incentive/) - From mining booms, population booms and housing booms - Australia's history has been littered with ‘bangs’ of productivity. Now, according to the Turnbull government, we are engaged in an ‘ideas boom’ – where all that confines us is our imagination. Certainly, the creation of ideas, or innovation as it is otherwise known, goes hand in - [Is R&D, the Elixir of Economic Growth, Threatened by ISA?](https://www.swansonreed.com.au/is-the-elixir-of-economic-growth-rd-threatened-by-isa/) - The ‘elixir of economic growth’, whilst sounding like a surreptitious tincture crafted by an alchemist, is actually often believed by economists to be pertaining to research and development (R&D). Hence, as we mentioned in our previous post, it came as a surprise to many that the R&D Tax Incentive was not mentioned in the Innovation - [A Patent Box Grant: The Bang the ‘Idea’s Boom’ Needs](https://www.swansonreed.com.au/a-patent-box-grant-the-bang-the-ideas-boom-needs/) - The ‘ideas boom’, the blueprint to innovation, or just simply, the Innovation Statement – whichever way you prefer to coin Turnbull’s first economic report as government, there is no denying that ‘innovation’ has become a buzzword in the Australian vocabulary this week. The innovation statement, released on Monday, unveiled a $1.1 billion plan to foster - [Lessons from Berlin: What the Innovation Statement is Missing](https://www.swansonreed.com.au/lessons-from-berlin-what-the-innovation-statement-is-missing/) - With street’s littered with graffiti to warehouses, beer gardens and an abundant supply of bratwurst and beer. There is no doubt about it; Berlin is the essence of being unintentionally hip. While Silicon Valley may be the start-up mecca of the world, Berlin has experienced rapid investment dollar increases resulting in a vibrant start-up scene - [Is an Israel Landing Pad Enough?](https://www.swansonreed.com.au/is-an-israel-landing-pad-enough/) - Israel, the country itself has been described as a perpetual start-up, while also being positioned as a critical research and development centre for the world’s leading technology companies. From Internet and mobile phone applications to medical devices and biotech, Israel’s industry has indeed invested heavily in new technology. Thus, what effect could a partnership with - [How Innovation Isn't Limited to Just High-Tech Industries](https://www.swansonreed.com.au/how-innovation-isnt-limited-to-just-high-tech-industries/) - From the cochlear implant and the first ultrasound scanner to wi-fi and penicillin, Australia has indeed developed highly innovative products in the high-tech and medical sectors. However, while these industries are traditionally associated with the mere mention of ‘innovation’, they do not encompass our whole economy. In Australia particularly, high-tech manufacturing contributes to less than - [Is an Advertising Campaign the Answer to Australia’s Innovation Culture Shift?](https://www.swansonreed.com.au/is-an-advertising-campaign-the-answer-to-australias-innovation-culture-shift/) - The government’s $1.1 billion innovation agenda – a trademark of the Turnbull regime – was unveiled in December under the catchphrase ‘the ideas boom’. Relative to this, the Turnbull government is to devote a further $28 million into its annual advertising budget to pitch its innovation agenda and trigger a culture shift in the country. - [How to Make Innovation More Than a Buzzword](https://www.swansonreed.com.au/how-to-make-innovation-more-than-a-buzzword/) - ‘Innovation’, the term alone has somewhat formed a place in the Australian vernacular in recent months. The buzzword skyrocketed into popularity when Prime Minister Malcolm Turnbull issued its National Innovation and Science Agenda last month, detailing plans to increase innovation, entrepreneurship and reward risk tasking. However, while endorsing start-ups and STEM is important, corporate Australia - [Australia Leading the Way in Robot Innovation](https://www.swansonreed.com.au/australia-leading-the-way-in-robot-innovation/) - From the 1950’s Astro Boy and Iron Man comic illustrations to the more recent Wall-E and Chappie characters that lit up our cinema screens – undeniably, robots have frequently been depicted in works of fiction. However, in 2016 is fiction becoming more of an everyday reality? Indeed, for the past century, innovation in robots, machine - [How the Cloud Can Accelerate Innovation for Small Companies](https://www.swansonreed.com.au/how-the-cloud-can-accelerate-innovation-for-small-companies/) - Undeniably, the Australian economic and political environment has pivoted greatly over the last twelve months. In the transition from a mining-led economy to one which is increasingly driven by technology, Australia’s voyage to be more innovative has led to significant changes in the country. These alterations are sieving down to small business as entrepreneurs adapt - [Do Young Australians Need A Digital Culture Change?](https://www.swansonreed.com.au/young-australians-need-digital-culture-change/) - The young generation, often seen adorned with iPod earphones and the latest smartphone or tablet in tote, have grown up in a world where the Internet has become enmeshed into daily existence. Indeed, there is a sociological portrait of young people as being effortlessly tech savvy. However, a new report reveals that young Australians are - [Innovation’s Effect on the Local Economy](https://www.swansonreed.com.au/innovations-effect-on-the-local-economy/) - Innovation, aside from being coined as the blueprint for success by the Turnbull government, can greatly benefit the local economy. Recently, Bloomberg released their US Innovation Index which added proof to the link between education, research and innovation. Out of the fifty states, Massachusetts was crowned the top state for innovation in 2015. Prompting the - [Missed Tax Savings by The Mining Sector…](https://www.swansonreed.com.au/missed-tax-savings-by-the-mining-sector/) - Certainly, Australia’s colonial and federal history, its geographical isolation, huge landmass and small population have profoundly influenced the country’s industries, technologies and research institutions. This resource-rich history lead to what is more commonly known as the 'mining boom'. In light of this, Australian industrial research and development (R&D) in the second half of the nineteenth and early - [5 Tips for Cultivating an Innovative Workplace](https://www.swansonreed.com.au/5-tips-for-cultivating-an-innovative-workplace/) - Certainly, the Australian government has been keen on innovation, as embodied in its announcement of its National Innovation and Science Agenda in December. However, is our workforce ready for an innovation overhaul as we embark on the ‘ideas boom’ in 2016? According to Randstad’s World of Work Report, based on 14,000 employees and employers from across - [Research Contributes to a Quarter of Australia’s Economic Output](https://www.swansonreed.com.au/research-contributes-to-a-quarter-of-australias-economic-output/) - From the cochlear implant, otherwise known as the bionic ear, to the medical application of penicillin, Australia actually has a rich history in science research and development (R&D). In fact, a new report by the Australian Academy of Science reveals that over the past twenty to thirty years, scientific advances have contributed to an estimated - [Australian Researchers Create Humidity-Resistant Solar Weatherproofing](https://www.swansonreed.com.au/australian-researchers-develop-solar-weatherproofing/) - Indeed, summer is well and truly upon us when the metal of a seatbelt brands you or the concept of dreadlocks, as an attempt to control humidity hair frizz, is becoming increasingly appealing. Undeniably, summer in Australia is notoriously hot, humid, and wet – or all three at once. Certainly, we’ve been taught since we - [Should Australia Focus on Collaboration or Competition to Boost Innovation? ](https://www.swansonreed.com.au/collaboration-or-competition-innovation/) - Certainly, one of the cornerstones of an open innovative environment is the ability to collaborate. As innovation processes become increasingly cooperative, new relationships among players in the innovation space emerge. However, what role does competition have in stimulating and facilitating innovation, if any? Whilst some may believe competition is the polar opposite of collaboration, the - [The Benefits of Innovation Altruism…](https://www.swansonreed.com.au/the-benefits-of-innovation-altruism/) - Altruism, or selflessness, is the principle or practice of unselfish concern for or the devotion to the welfare of others. Within the context of innovation, a selfless orientation in a nation can positively impact the broader global innovation system. In this regard, however, Australia seemingly has a way to go to attain recognition as a - [Australia on the Right Track to Innovation](https://www.swansonreed.com.au/australia-innovation-track/) - Customarily, when people consider innovation they often concentrate on the end product – i.e. the app, the software or the piece of hardware. However, they generally dismiss the steps beforehand that are essential in developing the aforementioned innovative artefact. In particular, human resources play a large part in the innovation process. Australia transcends in generating - [What Are the Fees for Assistance With the R&D Tax Incentive?](https://www.swansonreed.com.au/what-are-the-fees-for-rd/) - The preparation of an R&D Tax Incentive Registration form can often spur feelings of love and hate in equal measure. Love – because if eligibility requirements are ratified, companies can obtain a generous cash rebate or a reduction in payable tax. Hate – because determining entitlement and the concept of drafting the registration form alone - [The Resilience of the Australian Economy](https://www.swansonreed.com.au/the-resilience-of-the-australian-economy/) - Traditionally, February marks the wind down of summer and the beginning of the calendar year for business in Australia. Despite cricket and tennis filling our screens over the holiday break, economy and the financial market now takes the precedence in many individuals’ agendas. However, with considerable instability in global financial markets already this year, it's - [What are Non Core R&D Tax Incentive Activities?](https://www.swansonreed.com.au/non-core-rd-tax-incentive-activities/) - Indeed, the research and development (R&D) tax incentive can cause confusion when determining what can and cannot be claimed. This is particularly the case for what activities actually qualify for the incentive (core activities), and which ones do not (non core). In our latest blog, we described that core R&D activities are essentially the experimental - [What Are the Ineligible Expenses & Expenditures Pertaining to the R&D Tax Incentive?](https://www.swansonreed.com.au/ineligible-expenses/) - If you are a firm who uses technology as a foundation for creating new or improved products or services – and the development involves investing in a degree of experimentation or prototyping – there’s a high likelihood you may be eligible for the R&D Tax Incentive. However, the fact remains that there is still quite - [Innovation at the Farm Gate: How Australia Can Leverage a Growing Agriculture Sector](https://www.swansonreed.com.au/innovation-at-the-farm-gate/) - Between now and 2050 the world's food system will need to harvest 70 per cent more food to nourish an increasingly crowded world. As the global population trudges towards 9 billion by 2050 and land and water resources decline, never has the task of producing more from less been more imperative. Essentially, these figures reveal - [Do Your R&D Activities Have a Dominant Purpose?](https://www.swansonreed.com.au/do-your-rd-activities-have-a-dominant-purpose/) - Undeniably, the rules and regulations surrounding the Research and Development (R&D) tax incentive may be bewildering for some. This is particularly the case when distinguishing the eligible R&D activities. To clarify, both ‘core’ and ‘supporting’ R&D activities can be claimed – however, activities must show that they are undertaken for the dominant purpose of supporting R&D - [Tax Incentives Vs a Grant-Based System –  Which is best for stimulating R&D in Australia?](https://www.swansonreed.com.au/tax-incentives-or-grants-which-is-best-for-stimulating-rd-in-australia/) - When it comes to policies bridging the gap between the ‘laboratory’ and the marketplace, companies will typically look to either grant funding or tax incentives. Previously, we’ve delved into the differences between government grants and the Research and Development (R&D) tax incentive in Australia. However, where support for R&D is called for, an important question - [Does the R&D Tax Incentive Need Changing?](https://www.swansonreed.com.au/does-the-rd-tax-incentive-need-changing/) - In launching the National Innovation and Science Agenda last year, the Australian Government announced that they would be undertaking a review of the Research and Development (R&D) Tax Incentive programme to make it better accessible to the business sector. At present, the review is currently underway and it is expected to report to Government in - [The Geography of Innovation: Does Location Matter?](https://www.swansonreed.com.au/the-geography-of-innovation-does-location-matter/) - Traditionally, the landscape of innovation has been dominated by locations such as Silicon Valley or New York. However, a contemporary urban model is now emerging around the globe, giving rise to what is known as “innovation clusters”. By definition, innovation clusters are described as groupings of independent undertakings — innovative start-ups, small, medium and large undertakings - [Biotech Firms Warn Against Changes to the R&D Tax Incentive](https://www.swansonreed.com.au/biotech-warns-against-changes-tax/) - There is a pervading fear in Australia that our best and brightest are failing to find opportunities locally and are instead vying for work overseas. ‘Brain Drain’, as it’s coined in public discourse, has subsequently become one of the key concerns for the Australian Government. Thus, as a response to dwindling innovation levels and in - [What Can Australia Learn from The France R&D Model?](https://www.swansonreed.com.au/what-can-australia-learn-from-the-france-rd-model/) - With the release of the Australian Innovation Agenda in December 2015, Australia is experiencing significant economic and social change. Indeed, we are now entering a new era in which technology, research and ideas will become our most valuable cargo. Successfully leveraging these changes will ultimately require a social focus on innovation, collaboration and digital disruption. - [The Impact of Fiscal Policy: IMF Predicts a 80-Fold Return from Budget R&D Spend](https://www.swansonreed.com.au/fiscalpolicyimpact/) - Indeed, the notion that Research and Development (R&D) makes an immense impact to innovation and competitiveness is prevalent among economists and politicians. Without a doubt, governments play a crucial role in promoting higher education and basic research. However, fiscal policies and funding incentives are also vital to nurture private R&D investment too. In fact, a - [Research & Development Tax Incentive: The Year in Review](https://www.swansonreed.com.au/research-development-tax-incentive-the-year-in-review/) - Over the last twelve months there has been substantial activity in respect to the research and development (R&D) tax incentive with various announcements broadcasted by AusIndustry and the Australian Tax Office (ATO), as well as the release of the National Innovation and Science Agenda (NISA). As a result, the discourse of business and government in - [Australia Plans to Reform Tax Loss Rules](https://www.swansonreed.com.au/australia-plans-to-reform-tax-loss-rules/) - Throughout 2016, the Turnbull government has been following through on plans to boost innovation in Australia, as blueprinted in last December’s innovation statement. As we mentioned in a previous post, last month the government introduced new tax laws for start-ups and investors. Now, to further encourage innovation and growth among businesses, Australia plans to reform - [Record-Keeping for the R&D Tax Incentive](https://www.swansonreed.com.au/record-keeping-for-the-rd-tax-incentive/) - As the cut-off for lodgement of R&D tax claims draws near, companies should now be turning their focus to the preparation and registration of their R&D tax credit claim for 2015. With higher levels of review activity and scrutiny by AusIndustry and the ATO, companies need to focus on, and be able to, reinforce and substantiate their R&D claims - [IP Report Reveals Innovation in Australia is Increasing](https://www.swansonreed.com.au/ip-australia-report-reveals-in-innovation-in-australia-is-increasing/) - ‘Innovation’, the term alone has somewhat formed a place in the Australian vernacular in recent months. The buzzword skyrocketed into popularity when Prime Minister Malcolm Turnbull issued its National Innovation and Science Agenda in December, detailing plans to increase innovation, entrepreneurship and reward risk tasking. Now, according to the latest details provided by the Australian Intellectual - [Government’s Proposed Cuts to the R&D Tax Incentive Lapses](https://www.swansonreed.com.au/governments-proposed-cuts-rd-tax-incentive-lapses/) - Innovation has become progressively debated in public discourse of late, leading to a significant focus on the R&D Tax Incentive in the last 12 months. This week, however, a positive development was made that will no doubt be welcomed by the innovation ecosystem in Australia. To clarify, a proposed 1.5% cut to the R&D Tax Incentive - [Reminder: R&D Registrations Due 30 April 2016](https://www.swansonreed.com.au/reminder-rd-registrations-due-30-april-2016/) - Registration is the critical first step in accessing the R&D Tax Incentive. In order to be able to claim the benefits of the R&D Tax Incentive, a company must register their R&D activities with AusIndustry. As mentioned in a previous post, the deadline for lodging an application for registration is ten months after the end - [Does Cash Flow Constraints Stifle Innovation?](https://www.swansonreed.com.au/cash-flow-constraints-stifle-innovation/) - Without a doubt, financing is extremely imperative for innovation and development, in particular at the seed and early stages of business development. In spite of the growing importance of entrepreneurial activities, innovative companies face several barriers for accessing finance, such as asymmetric information and financing gaps between investors and entrepreneurs. Indeed, access to finance is - [Does Innovation Require Strategy?](https://www.swansonreed.com.au/innovation-require-strategy/) - Despite Prime Minister Malcolm Turnbull making innovation a hallmark of his time in office, a recent survey reveals that innovation is going ignored by some of the Australia's largest Chief Financial Officers (CFOs). The survey, titled the 2016 American Express CFO Future-Proofing Survey, examines the views of 250 CFOs from Australian companies with revenues of between $2 - [Final Days to Register Activities for the R&D Tax Incentive](https://www.swansonreed.com.au/final-days-register-activities-rd-tax-incentive/) - This year, April 30 transpired on a Saturday which has subsequently extended the R&D tax incentive registration deadline to today (2 May 2016). Moreover, as it is a public holiday in Queensland today, Queensland-based entities may lodge registrations until tomorrow (3 May 2016). As per previous years, the R&D tax incentive registration deadline is 10 - [Budget Breakdown: Key Considerations for the R&D Tax Incentive](https://www.swansonreed.com.au/budget-analysis/) - Over the last twelve months there has been substantial activity in respect to the research and development (R&D) tax incentive with various announcements broadcasted by the government and a declaration of a review of the programme. As a result, the discourse of business and government in Australia is rife with mentions to innovation, disruption and - [The Role of the R&D Tax Incentive in Australia’s Research & Innovation Future](https://www.swansonreed.com.au/rd-tax-future-research-innovation/) - With the release of the Australian Innovation Agenda in December 2015, Australia is experiencing significant economic and social change. Indeed, we are now entering a new era in which technology, research and ideas will become our most valuable cargo. Successfully leveraging these changes will ultimately require a social focus on innovation, collaboration and digital disruption. - [Bill Ferris Calls for Stronger R&D Collaboration Ties](https://www.swansonreed.com.au/bill-ferris-calls-stronger-rd-collaboration-ties/) - Undeniably, research and development occurs in universities and in businesses – but there remains little connection between the two. Bill Ferris, chair of the federal government’s Innovation Australia, shared similar views when he spoke at a seminar in Sydney hosted by the Young Presidents’ Organisation this week. Specifically, he proposes that Australian business needs to - [Big vs Small Companies: Who Spends More on R&D in Australia?  ](https://www.swansonreed.com.au/big-vs-small-companies-spends-rd-australia/) - Research and development (R&D) by small companies is thriving, providing positive news for Prime Minister Malcolm Turnbull's drive for businesses to be more innovative in the post-mining boom. To elaborate, new findings in the federal budget papers reveal that small companies spend proportionally more of their revenues on research and development than large ones. In specific, companies - [The Impact of Cash Flow on R&D Intensity](https://www.swansonreed.com.au/impact-cash-flow-rd-intensity/) - Does the amount of cash flow obtained by companies affect the level of investment in research and development (R&D)? To answer this, we look at empirical research to investigate the impact of cash flow on R&D expenditure. Firstly, cash flow can be defined as the movement of cash into or out of a business, project - [R&D Tax - Important 30 June Planning for Companies](https://www.swansonreed.com.au/important-30-june-information/) - The following R&D tax claim information will apply to companies that: have recently submitted a 2015 R&D claim; and intend to submit a 2016 R&D Claim. Upcoming AusIndustry Compliance Activity Over the next few months, AusIndustry will likely start compliance activity for FY15 applications that were lodged around the April 30 deadline. If reviewed, companies claiming - [Election Campaign Highlights Innovation Shortcomings](https://www.swansonreed.com.au/election-campaign-highlights-innovation-shortcomings/) - Indeed, we are now entering a new era in which technology, research, and ideas will become our most valuable cargo. Successfully leveraging these changes will ultimately require a social focus on innovation, collaboration, and digital disruption. In regards to this, as Australia quickly approaches an election on July 2, major parties have been announcing excerpts of their policies - [GHP 104 160 689 Pty Ltd v. Commissioner of Taxation](https://www.swansonreed.com.au/ghp-104-160-689-pty-ltd-v-commissioner-of-taxation/) - Summary of 104 160 689 matter Taxation Ruling - TR2013/3 Click Here Taxation Ruling: TR 2013/3A1 - Addendum Click Here Decision Impact Statement - GHP 104 160 689 Pty Ltd Click Here The case concerned whether certain expenditure was to be disallowed deductibility at the rate of 125% because it was 'feedstock expenditure' within the - [R&D Tax Incentive review to be carried out](https://www.swansonreed.com.au/rd-tax-incentive-review-to-be-carried-out/) - A government review of the research and development (R&D) tax incentive program is set to be carried out by the Centre for International Economics. The Centre for International Economics (CIE) has been engaged to provide independent advice to the Review of the R&D Tax Incentive programme. The review is aimed at enabling mid-sized businesses to - [CSL urges cuts to advanced manufacturing tax rate](https://www.swansonreed.com.au/csl-urges-cuts-to-advanced-manufacturing-tax-rate/) - Australian biotech company CSL is calling for a lower advanced manufacturing tax rate. Last year the company decided to build a $500 million plant in Switzerland over Australia due to factors such as proximity to market, availability of staff, market experience and, specifically, a lower corporate tax rate within the country. CSL's chief financial officer, - [R&D Tax claim for companies before 30 June](https://www.swansonreed.com.au/rd-tax-claim-for-companies-before-30-june/) - The following R&D tax claim information will apply to companies that: have recently submitted a 2014 R&D claim; and intend to submit a 2015 R&D Claim. Upcoming AusIndustry Compliance Activity Over the next few months, AusIndustry will likely start compliance activity for FY14 applications that were lodged around the April 30 deadline. If reviewed, companies - [Tax Discussion White Paper "Re:think" - Swanson Reed Submission](https://www.swansonreed.com.au/tax-discussion-white-paper-rethink-swanson-reed-submission/) - This submission outlines our view in response to the Australian Federal Government’s Tax Discussion White Paper “Re:think”. Re:think contains two questions concerning innovation: Question 39: Does the R&D tax incentive encourage companies to conduct R&D activities that would otherwise not be conducted in the absence of government support? Would alternative approaches better achieve this objective - [R&D Tax claim for companies before 30 June](https://www.swansonreed.com.au/rd-tax-requirements-companies-30-june/) - For information about upcoming requirements for June year end companies, please click here. Eligibility Checklist: Are you Eligible to claim the R&D Tax Incentive? Check out our Eligibility Wizard to find out. Audit Checklist: Can you handle an AusIndustry Audit? Take our questionnaire to find out. - [Is an innovative workplace an oxymoron?](https://www.swansonreed.com.au/innovation-anyway/) - We are all innovators except none of us are. How do we know the who's who of innovation? - [Entrepreneurial Ecosystems and the Role of Government Policy](https://www.swansonreed.com.au/entrepreneurial-ecosystems/) - As the 2014 G20 Leaders Summit drew to a close in November, the final statement from the nations representatives called for enhancements to Australia’s economic growth achieved through the “promotion of competition and innovation and the coordination of strategies to reduce unemployment, particularly amongst youth, through entrepreneurship”. While it may sound prospective, this theme of - [The Government's Research and Development Blind Spot](https://www.swansonreed.com.au/research-and-development-blind-spot/) - When it comes to science and Research and Development, other countries are hitting the accelerator while Australia is shifting into reverse. During the Prime Minister’s prizes for Science, held at Parliament House last October, Tony Abbott delivered his speech in front of Australia’s best and brightest minds and left the stage with a barely audible - [Government commitment to stable R&D Tax Incentive desperately needed after retrospective cuts](https://www.swansonreed.com.au/government-tax-incentive-desperately-needed/) - Today Tax Laws Amendment (Research and Development) Bill 2013 officially passed both houses of Parliament and is now awaiting royal assent. The bill initially proposed to deny access to the R&D Tax Incentive for companies with income exceeding $20 billion. Treasury anticipated this measure would provide $1.1 billion in savings over the forward estimates and $350 million in - [Innovation is the key to survival for Australian Manufacturers](https://www.swansonreed.com.au/innovation-key-survival-australian-manufacturers/) - A recent manufacturing showcase in Dandenong, Melbourne, hosted by the Industry Capability Network and the Victorian Department of State Development, Business and Innovation brought together more than 550 representatives from various manufacturing sectors to discuss future changes and opportunities in the manufacturing industry. The event provided a valuable forum that focused on how manufacturing businesses - [Important changes to AusIndustry’s r&d activites form](https://www.swansonreed.com.au/important-changes-to-ausindustrys-rd-application-form/) - Last week, AusIndustry released version 5 of the R&D activities form. The application now requires more information from the Applicant regarding the nature of core and supporting activities alongside additional administrative information. Whilst the new requirements will require more time and input to complete, Swanson Reed views the changes as positive since Applicants must explicitly - [Budget tax cuts advocated by Aus Industry Group](https://www.swansonreed.com.au/australian-industry-group-advocates-company-tax-cuts-federal-budget/) - According to surveys conducted by the Australian Industry Group, 70 per cent of the 364 businesses surveyed said reducing the tax burden was one of their top three priorities for the Budget. Increasing spending on infrastructure and calling for the Government to bring the Budget into balance over the next five years were also ranked - [Good News Flash – Proposed reduction to R&D offset rate rejected by Senate](https://www.swansonreed.com.au/proposed-reduction-rd-offset-rate-rejected-senate/) - At the announcement of the May 2014 budget, the Federal Government proposed to decrease the refundable and non-refundable R&D tax offsets by 1.5% for FY15. The reduction in the R&D tax offset rates was proposed to commence one year prior to the 1.5% reduction in corporate rate for FY16. Had the R&D Tax Offset rates reduced one - [Upcoming Abbott Government's R&D Tax Incentive Policy](https://www.swansonreed.com.au/the-abbott-governments-research-and-development-rd-tax-incentive-policy/) - Swanson Reed welcomes ‘The Coalition’s Policy to Boost the Competitiveness of Australian Manufacturing’ with its support for a “new approach” to manufacturing and policy improvements to the R&D Tax Incentive. Tony Abbot and the Coalition has placed a completely different emphasis on the importance of increased commercial R&D in Australia than that of the Labor - [ATO ruling on software development](https://www.swansonreed.com.au/new-ato-ruling-software-development/) - On 12 March 2014, the ATO issued Taxation Ruling TR 2014/1 titled “Income tax: commercial software licensing and hosted agreements: derivation of income from agreements for the right to use proprietary software and the provision of related services”. This ruling deals with when commercial software developers derive income for the purpose of s 6-5 of - [Commission Audit targeted by agricultural R&D](https://www.swansonreed.com.au/agricultural-rd-targeted-commission-audit/) - The Commission Audit report, which examined Australian Government finances, has recommended that public funding of agricultural R&D in Australia be significantly reduced. The recommendations made by the report suggested that the amount of government funding be reduced to better reflect the mix of private and public benefits. It was suggested that the current cap on - [Australian Innovation: Go Hard or Go Home...](https://www.swansonreed.com.au/australian-innovation-go-hard-go-home/) - With troubled commodity prices, higher employment costs and a diminishing manufacturing sector, Australia's immediate future doesn't look bright. Unlike the United Kingdom, the United States and most of the developed world, Australia has no current innovation strategy or policy. If we don't act quickly to develop a plan to support innovation, particularly SME's in the manufacturing - [New Grant - Good News for Aussie Manufacturers](https://www.swansonreed.com.au/good-news-aussie-manufacturers/) - After a tough trot, Australian manufacturers can breathe a sigh of relief after the Australian Government revealed applications are now open for the Manufacturing Transition Program. The program will provide manufacturers with a $50 million boost to become more competitive and sustainable. Available to any manufacturer spending over $4 million on capital expenditure / expansion - [Local Biotech firm recieves $8.8 million R&D tax offset](https://www.swansonreed.com.au/local-biotech-firm-receives-8-8-million-rd-tax-offset/) - Alchemia (ASX:ACL) has received an additional $8.8 million rebate as part of the R&D Tax Incentive Scheme. The new rebate for FY13 brings the total funds Alchemia has received under the R&D incentive scheme over the last 12 months to over $13 million. In December, Alchemia won approval from AusIndustry to apply for incentive credits for - [R&D Tax Incentive Deadline is Drawing Near ](https://www.swansonreed.com.au/rd-tax-incentive-deadline-drawing-near/) - Companies with a June year end that wish to claim the R&D Tax Incentive for activities conducted in the 2014 financial year need to register before 30 April 2015 to be eligible to claim. The R&D Tax Incentive can provide generous support in offsetting some of the costs of R&D to help your company undertake - [ATO ID 2015/6 Research and Development: Carry forward R&D tax offsets at joining time for a consolidated group](https://www.swansonreed.com.au/ato-id-20156-research-development-carry-forward-rd-tax-offsets-joining-time-consolidated-group/) - Can the head company of a consolidated group access the non-refundable carry forward R&D tax offsets available to a joining entity at the joining time?Yes. The head company of a consolidated group can access the non-refundable carry forward R&D tax offsets available to the joining entity at the joining time. In order to apply the - [Australian Innovation spending at 30 year low](https://www.swansonreed.com.au/research-development/) - Investment in research and development by the Australian government has dropped to its lowest level in 30 years according to an analysis of government figures. Accounting for only approximately 2 per cent of government investment, R&D spending has fallen to its lowest GDP share in 25 years. Australia has seen significant growth in research and - [Patent Grant Program - Australia's Patent Box Solution](https://www.swansonreed.com.au/a-new-patent_grant-australias-patent-box-solution/) - Recent research has indicated that 1000 extra patents per year (that otherwise would not have been filed) could add up to $7 Billion extra GDP per year in the Australian economy. It has been proposed that a new type of government endorsed grant program aimed to offset the cost of patent filing, could be Australia's answer to the - [Australian Innovation System Senate Inquiry](https://www.swansonreed.com.au/inquiry-into-the-australian-innovation-system/) - On 18 March 2014 the Senate referred the inquiry into Australia's innovation system to the Senate Economics References Committee. The Economics Legislation Committee inquires allow interested parties to submit their views on the Australian Innovation System. Swanson Reed's submission focused on key areas of policy and investment in order to ensure Australia remains globally significant in - [Worksheet of feedstock within Company Income Tax Returns](https://www.swansonreed.com.au/changes-rd-tax-incentive-feedstock-disclosures-within-tax-return/) - 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. In an effort to assist - [R&D Tax 2012 Lodgement Deadline: Information for Companies](https://www.swansonreed.com.au/rd-tax-2012-lodgement-deadline-information-for-companies/) - 30 April 2013 is the lodgement deadline for companies wishing to claim eligible R&D tax 2012 year under the new R&D Tax Incentive. Companies planning to submit 2012 claims should be compiling submissions NOW to ensure Applications are prepared to an adequate standard. Below are some key issues companies and their tax agents should be mindful of - [Have Quarterly Credits gone the way of the Dodo?](https://www.swansonreed.com.au/have-quarterly-credits-gone-the-way-of-the-dodo/) - The Tax Laws Amendment (2013 Measures No. 4) Bill 2013 aimed to establish a new scheme for making refundable tax offsets available in quarterly installments. Under that proposed scheme, eligible small and medium companies would access installments on a quarterly basis in anticipation of claiming the 45 per cent research and development refundable tax offset - [R&D tax $20 billion turnover](https://www.swansonreed.com.au/back-on-the-rd-tax-chopping-block-20-billion-turnover-companies/) - As part of the Government's ongoing commitment to restore simplicity and fairness to the Australian tax system, today, Treasurer Joe Hockey announced the re-tabling of many bills that were introduced by the previous parliament. Of the 92 unlegislated tax and superannuation changes, the Government will proceed with 18 initiatives, including a bill that will deny access - [R&D tax incentive legislation :Exception for large businesses](https://www.swansonreed.com.au/rd-tax-incentive-all-but-over-for-large-business-2nd-readings-moved/) - A new R&D tax incentive legislation of the Income Tax Assessment Act 1997, section s355-103, will provide an exception for large business in claiming R&D tax incentive benefits. The new section will be back dated to 1 July 2013, and as of late yesterday afternoon been moved to a second reading in the lower house. The Tax - [R&D tax exclusions are referred to Senate](https://www.swansonreed.com.au/rd-tax-exclusions-referred-senate-consultation/) - The newly proposed section 355-103 ITAA1997, providing an exception for large business in claiming the R&D Tax exclusions are referred to senate for further inquiry. The Tax Laws Amendment (Research & Development) Bill 2013 passed the lower house only days ago, but will be fully investigated by the Senate for economic impact. A report of - [Big businesses against R&D tax exclusions](https://www.swansonreed.com.au/big-businesses-rd-tax-exclusions/) - The recent submissions to the Economics Legislative Committee were an opportunity for business’ to voice their opinions on recent proposed R&D tax exclusions put forward in the Tax Laws Amendment (Research and Development) Bill 2013. Swanson Reed supported the proposed changes in our submission due to potential benefits to SMEs and the Australian economy (Click - [R&D Tax Incentive Advisory Committee revoked](https://www.swansonreed.com.au/rd-tax-incentive-advisory-committee-revoked-march-2014/) - On 24 March 2014 the Minister for Industry, Ian Macfarlane announced that effective from 31 March 2014 the R&D Tax Incentive Advisory Committee of Innovation Australia would be revoked, pursuant to subsection 22(1) of the Industry Research and Development Act 1986 (IR&D Act). The committee was part of the Industry portfolio and functioned in an - [Is Aus R&D Incentive holding back ICT startups? ](https://www.swansonreed.com.au/australias-rd-tax-incentive-holding-back-ict-startups/) - A recent report by the Australian Information Industry Association (AIIA) has warned of the risks regarding innovation in the Australian ICT sector if the government fails to foster growth in more technology startups. In the AIIA's “SmartICT 2014: A vision for sustained national prosperity” report released 4 March 2014, the AIIA highlighted Australia’s tax rules, - [Large firms to be denied R&D tax incentives](https://www.swansonreed.com.au/large-firms-denied-rd-tax-incentives-senate-report-recommendation/) - This afternoon, the Senate Economics Legislation Committee (“the Committee”) tabled their report into the Tax Laws Amendment (Research and Development) Bill 2013 (“the Bill”). As it stands, the Bill proposes that companies with an aggregated assessable income of $20 billion or more are to be denied access the R&D Tax Incentives. The Bill is expected - [2014 Budget Update: Minor Reduction in R&D Tax Offset - Grant Funding Abolished](https://www.swansonreed.com.au/2015-budget-rd-tax-incentive-grant-funding-reduced/) - Announced in the recent Federal Budget was the Government’s plan to raise over $1 Billion by cutting funding to the R&D Tax Incentive and a range of grants. The savings from these measures will be redirected to repair the Budget and fund policy priorities. Proposed Reduction to the R&D Tax Incentive The R&D Tax Incentive - [TD 2014/15 - Treatment of Design Expenditure relating to an Asset](https://www.swansonreed.com.au/td-201415-treatment-design-expenditure-relating-asset/) - The ATO recently issued TD 2014/15. This Tax Determination relates to the R&D tax incentive and discusses the treatment of expenditure incurred by an R&D entity during various design stages (Design Expenditure) connected with it beginning to hold a tangible depreciating asset, where that expenditure also falls within the terms of section 355-205 of the - [Green's resurrect quarterly credits system](https://www.swansonreed.com.au/greensresurrectquarterlycredits/) - This morning, in a bold move to resurrect the quarterly credits concept, the Leader of the Greens, Christine Milne moved amendments in the Senate - [Greens to back R&D](https://www.swansonreed.com.au/greens-back-rd/) - Large businesses have a new friend in the Greens who are set to block the Abbot government's plan to slash R&D tax breaks by $1.1 billion. The unlikely allies have made nice in the face of the potential loss of millions of dollars to Australian businesses. The ALP have also jumped on the band wagon - [TJM Products Pty Ltd v Industry Research and Development Board [1998]](https://www.swansonreed.com.au/tjm-products-pty-ltd-v-industry-research-development-board-1998/) - This matter was brought to the Federal Court of Australia by TJM Products to review the retrospective effect of the IR&D Amendment Act 1996 preventing TJM Products registration of application for R&D activities. The IR&D Board sought for a summary disposal of the application by TJM Products for an order of review under the Administrative - [Substituted Accounting Period](https://www.swansonreed.com.au/substituted-accounting-period/) - The R&D tax incentive applies to income years beginning on or after 1 July 2011. If your 2012 tax return is for a substituted accounting period beginning before 1 July 2011, you are unable to claim the R&D tax incentive in your 2012 tax return; however, if you have conducted R&D activities and meet the ## Pages - [Swanson Reed | Specialist R&D Tax Advisors in Australia](https://www.swansonreed.com.au/) - Swanson Reed is the largest specialist R&D tax advisory firm in Australia, providing tax services to Australian industries for over 30 years. - [Brisbane Office](https://www.swansonreed.com.au/map-parking-brisbane/) - Swanson Reed Level 11, 100 Edward Street Brisbane, QLD 4000 P: (07) 3221 1499 F: (07) 3221 1599 Parking (Approximate) Swanson Reed, Level 11, 100 Edward Street, Brisbane Secure Parking (53 Albert Street) Availability Time Rates Monday - Friday 0 - 20 Mins $5.00 20 Mins - 30 Mins $15.00 30 Mins - 1 Hr - [Contact Brisbane Office](https://www.swansonreed.com.au/contact-brisbane-office/) - Swanson Reed's local Brisbane R&D tax specialist practice consists of consultants with many years experience in both the previous R&D tax concession as well as the R&D tax incentive. 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We only employ local chartered accountants and tax agents with specialist R&D experience. - [Calculate Benefit](https://www.swansonreed.com.au/calculate-benefit/) - [aus calculate](https://www.swansonreed.com.au/aus-calculate/) - [Swanson Reed Online R&D Tax Workshop Series](https://www.swansonreed.com.au/online-rd-tax-workshop-series/) - View Swanson Reed’s online R&D tax workshop series to gain expert insights on R&D tax incentives. Stay compliant and optimize your claims. - [Strategic Partnerships](https://www.swansonreed.com.au/strategic-partnerships/) - [R&D Tax Incentives Around The World - Map](https://www.swansonreed.com.au/global-incentives/) - Explore global R&D tax incentives on an interactive map. 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Availability Time Rates Monday - Saturday 0 Min - 0.5 Hr $4.00 0.5 Hr - 1 Hrs $10.00 1 Hrs - 1.5 Hrs $14.00 2 Hrs - 2.5 - [AAT Case Finding Partially in Favour of an R&D Entity that Activities were Eligible: Moreton Resources [2022] - Video](https://www.swansonreed.com.au/aat-case-finding-partially-in-favour-of-an-rd-entity-that-activities-were-eligible-moreton-resources-2022-video/) - At AAT Case Finding, our team of professionals specializes in researching and finding partial results in favor of an R&D entity. - [AAT Case Finding in Favour of AusIndustry that Activities were Not Eligible: Absolute Vision Technologies [2022] - Video](https://www.swansonreed.com.au/aat-case-finding-in-favour-of-ausindustry-that-activities-were-not-eligible-absolute-vision-technologies-2022-video/) - With AAT's Case Finding service, AusIndustry can now quickly and accurately identify potential acts in favor of AusIndustry. - [AAT Case Finding in Favor of ATO for a Company Claiming Overseas Moulds/Assembly etc. without an Overseas Finding:  T.D.S BIZ  [2022] - Video](https://www.swansonreed.com.au/aat-case-finding-in-favor-of-ato-for-a-company-claiming-overseas-moulds-assembly-etc-without-an-overseas-finding-t-d-s-biz-2022-video/) - Are you uncertain about AAT case findings in favor of the ATO? Get expert advice to navigate through the complexities of Australian taxation. - [What we do](https://www.swansonreed.com.au/what-we-do/) - With offices nationwide, we manage all facets of the R&D tax incentive program, from claim preparation to audit compliance. Contact us now. - [Risk Management Policy](https://www.swansonreed.com.au/about/tax-legal-expertise/) - Swanson Reed is ISO 31000:2009 Risk Management Standard certified, ensuring top-quality claim preparation and advisory services. - [Our Fees](https://www.swansonreed.com.au/fees/) - We take a commercial approach to fee negotiations, offering flexible options tailored to client needs. Explore our adaptable fee arrangements. - [Audit Checklist Transportation](https://www.swansonreed.com.au/audit-checklist-transportation-details/) - Ensure R&D tax compliance in transportation with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Food and Beverage Details](https://www.swansonreed.com.au/audit-checklist-food-and-beverage-details/) - Optimize R&D tax compliance in the food and beverage industry with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Agriculture Details](https://www.swansonreed.com.au/audit-checklist-agriculture-details/) - Ensure R&D tax compliance in agriculture with our audit checklist. Stay prepared for R&D tax incentive claims. - [Documentation Management Consulting](https://www.swansonreed.com.au/product/rd-substantiationassistance/) - Recent AAT decisions stress a need for balanced R&D documentation. Our experts assess eligibility & substantiation to maximize your R&D claim. - [Updates on Software Activity based on AusIndustry Guidance released April 2022 - Video](https://www.swansonreed.com.au/updates-on-software-activity-based-on-ausindustry-guidance-released-april-2022-video/) - Get the latest updates on software activity eligibility under the R&D Tax Incentive, based on AusIndustry guidance released in April 2022. - [Time Limits for Lodgement and Extensions - Video](https://www.swansonreed.com.au/time-limits-for-lodgement-and-extensions-and-extensions-video/) - Learn about time limits for R&D tax incentive lodgement and possible extensions. Stay compliant and maximize your R&D claims effectively. - [Are You Eligible for Australia's R&D Tax Incentive Claim?](https://www.swansonreed.com.au/survey/) - Are You Eligible for Australia's R&D Tax Incentive? Use our step-by-step wizard to help check your eligibility for the new R&D Tax Incentive. - [Substantiation of R&D Activities and AusIndustry Documentation Expectations - Video](https://www.swansonreed.com.au/substantiation-of-rd-activities-and-ausindustry-documentation-expectations-video/) - Learn about substantiation of R&D activities and AusIndustry’s documentation expectations - ensure compliance of your R&D tax incentive claim. - [Sitemap](https://www.swansonreed.com.au/sitemap/) - Explore Swanson Reed's sitemap for easy navigation to R&D tax incentive resources, insights & compliance support across various industries. - [Search](https://www.swansonreed.com.au/search/) - Find R&D tax incentive resources, guides & expert insights with Swanson Reed's search tool - Information on grants, funding & compliance. - [R and D Tax Consultants](https://www.swansonreed.com.au/research-and-development-tax-incentive-rd-interpretation/) - Swanson Reed is the leading provider of R&D aid. 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We provide expertise to maximize your R&D tax incentive. - [Can Your Company Get R&D Tax Incentives? - R and D Tax Consultants](https://www.swansonreed.com.au/r-d-tax/) - Can Your Company Get R&D Tax Incentives? Find Out, with the Help of Swanson Reed Specialist R&D Tax Advisors. - [R and D Consulting - Understand Australia's R&D Tax Credit](https://www.swansonreed.com.au/r-d-tax-credit/) - Contact Swanson Reed – Specialist R&D Tax Advisors today, and we'll get you started with your Research & Development tax claim! - [R&D Consulting Service](https://www.swansonreed.com.au/r-d-consulting-brisbane-sydney-melbourne/) - Swanson Reed-Specialist R&D Tax Advisors have offices across Australia to serve businesses and organizations seeking the R&D tax incentive. - [R&D Consultancy](https://www.swansonreed.com.au/r-d-consultant-brisbane-sydney-melbourne/) - At Swanson Reed-Specialist R&D Tax Advisors are are truly specialists. 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Contact us for more details. - [Export Market Development](https://www.swansonreed.com.au/product/export-market-development/) - We assist businesses in the Export Market Development Grant (EMDG), helping you maximize funding for international expansion efforts. - [Audit Advisory](https://www.swansonreed.com.au/product/audit-defence/) - We excel in R&D tax incentive audit defence, with a strong success record against AusIndustry & ATO audits across various industries. - [Assurance and Advisory](https://www.swansonreed.com.au/product/assuranceandadvisory/) - Swanson Reed offers full-service reviews for self-claimants, ensuring R&D claims meet ATO penalty provisions for compliance and assurance. - [Irish businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia in Ireland](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-ireland/) - How Irish companies can claim a 45% cash rebate on eligible Australian R&D costs. Maximize your R&D tax benefits with Swanson Reed. - [Canadian businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-canada/) - How Canadian companies can claim a 45% cash rebate on eligible Australian R&D costs. Maximize your R&D tax benefits with Swanson Reed. - [Damian's Updates](https://www.swansonreed.com.au/news/damians-updates/) - Get the latest R&D tax incentive news, updates, and insights personally curated by Swanson Reed's Damian Smyth. - [New Clinical Trials Determination - Video](https://www.swansonreed.com.au/new-clinical-trials-determination-video/) - New Clinical Trial Determination – Video: Learn how recent changes impact R&D tax incentives and compliance. - [Perth Office Map and Parking](https://www.swansonreed.com.au/map-parking-perth/) - Find parking near Swanson Reed’s Perth office with our detailed map. 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Every aspect of the R&D claim process is managed by our local Australian staff. - [Software Development Under the R&D Tax Incentive](https://www.swansonreed.com.au/eligibility-of-software-development-activity-under-the-rd-tax-incentive-2-video/) - Explore the eligibility of software development activities under the R&D Tax Incentive. Learn key insights from Swanson Reed’s expertise. - [Teamviewer](https://www.swansonreed.com.au/download-teamviewer/) - Click here to download Teamviewer for PC and Mac. 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Stay prepared for R&D tax incentive claims. - [Audit Checklist – Transportation](https://www.swansonreed.com.au/audit-checklist-transportation/) - Ensure R&D tax compliance in transportation with our audit checklist: - [Audit Checklist Real Estate and Development Details](https://www.swansonreed.com.au/audit-checklist-real-estate-and-development-details/) - Ensure R&D tax compliance in real estate and development with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Series](https://www.swansonreed.com.au/audit-checklist-series/) - Access Swanson Reed’s range of R&D audit checklists to ensure compliance and accuracy in your R&D tax incentive claims. - [Audit Checklist Oil and Gas Details](https://www.swansonreed.com.au/audit-checklist-oil-and-gas-details/) - Ensure R&D tax compliance in oil and gas with our audit guidance. Stay prepared for R&D tax incentive claims. - [Audit Checklist - Oil and Gas](https://www.swansonreed.com.au/audit-checklist-oil-and-gas/) - Ensure R&D tax compliance in oil and gas with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Maritime and Boating Details](https://www.swansonreed.com.au/audit-checklist-maritime-and-boating-details/) - Ensure R&D tax compliance in maritime and boating with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Machine Tool and Die Details](https://www.swansonreed.com.au/audit-checklist-machine-tool-and-die-details/) - Ensure R&D tax compliance in tool and die with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Logistics Details](https://www.swansonreed.com.au/audit-checklist-logistics-details/) - Ensure R&D tax compliance in logistics with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist Lean Manufacturing Details](https://www.swansonreed.com.au/audit-checklist-lean-manufacturing-details/) - Ensure R&D tax compliance in lean manufacturing with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist - Food and Beverage](https://www.swansonreed.com.au/audit-checklist-food-and-beverage/) - Optimize R&D tax compliance in the food and beverage industry with our audit checklist. Stay prepared for R&D tax incentive claims. - [Audit Checklist - Fabrication](https://www.swansonreed.com.au/audit-checklist-fabrication/) - Optimize R&D tax compliance in fabrication with our audit checklist. Stay prepared for R&D tax incentive claims. - [Training and Development](https://www.swansonreed.com.au/about/traininganddevelopment/) - We offer nationwide workshops on R&D tax incentive updates, ensuring your staff stay informed on key issues in the R&D engagement process. - [AAT Case finding in favor of R&D Entity that activities were eligible: PKWK and Innovation and Science Australia (Taxation) [2021] - Video](https://www.swansonreed.com.au/aat-case-finding-in-favor-of-rd-entity-that-activities-were-eligible-pkwk-and-innovation-and-science-australia-taxation-2021-video/) - AAT ruling confirms eligibility for R&D tax incentives. Learn how this case impacts R&D claims and startup funding in Australia. - [Our Team](https://www.swansonreed.com.au/about/our-team/) - Meet Swanson Reed’s expert team specializing in R&D tax incentives. Maximize your R&D tax claim application with top industry consultants. - [Changes to Clawback Mechanisms for FY22 based on ATO Guidance Released November 2022 - Video](https://www.swansonreed.com.au/changes-to-clawback-mechanisms-for-fy22-based-on-ato-guidance-released-november-2022-video/) - The content of this video has been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive - [Changes to R&D Tax Incentive and Offset Calculations Commencing 1 July 2021 (for FY22) - Video](https://www.swansonreed.com.au/changes-to-rd-tax-incentive-and-offset-calculations-commencing-1-july-2021-for-fy22-video/) - The content of this video has been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on their respective websites: ATO AusIndustry - [Eligibility of Software Development Activity Under the R&D Tax Incentive - Video](https://www.swansonreed.com.au/eligibility-of-software-development-activity-under-the-rd-tax-incentive-video/) - https://youtu.be/RnYSlO7NVEI 'Software Development and the R&D Tax Incentive' Presentation Slides - Download The content of this video has been based on guidance publications released by AusIndustry and the ATO. 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Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on their respective websites: ATO AusIndustry - [Guide to Findings and Approval for Overseas R&D](https://www.swansonreed.com.au/guide-to-findings-and-approval-for-overseas-rd/) - https://youtu.be/iJ6SNK7aL-Q 'Guide to Findings and Approval for Overseas R&D' Presentation Slides - Download The content of this video has been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on their respective websites: ATO AusIndustry - [Substantiation of R&D Expenditure and ATO Documentation Expectations](https://www.swansonreed.com.au/substantiation-of-rd-expenditure-and-ato-documentation-expectations/) - https://youtu.be/H5wjpYmilfQ 'Substantiation of R&D Expenditure and Compliance with ATO Guidance' Presentation Slides - Download The content of this video has been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on their respective websites: ATO AusIndustry - [Basics of Eligible R&D Entities and Calculation of R&D Tax Offsets](https://www.swansonreed.com.au/basics-of-eligible-rd-entities-and-calculation-of-rd-tax-offsets/) - https://youtu.be/wRbwSZqooq8 'R&D Basics of Eligibility and Mechanics of Offsets' Presentation Slides - Download The content of this video has been based on guidance publications released by AusIndustry and the ATO. Additional guidance material on the R&D Tax Incentive is often progressively published by the programme regulators on their respective websites: ATO AusIndustry - [Learn About The R&D Credit](https://www.swansonreed.com.au/learn-about-the-credit/) - Call 1800 792 676 R&D TAX PREPARATION Swanson Reed Specialist R&D Tax Advisors have over 30 years of consulting experience. 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We will be in touch soon. - [Eligibility Wizard Details](https://www.swansonreed.com.au/survey-details/) - STEP 2 OF 2 - [We'll be in touch soon](https://www.swansonreed.com.au/well-touch-soon/) - Congratulations, you have completed the R&D Eligibility Wizard! If you answered 'yes' to all of the questions, then your company and project have a high degree of eligibility and you should strongly consider making a claim for the R&D Tax Incentive for the Previous financial year. Please enter your details below if you would like - [Calculator](https://www.swansonreed.com.au/calculator2/) - [Calculator](https://www.swansonreed.com.au/calculator1/) - [Singapore businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-singapore/) - The 43.5 cent ‘cash back’ benefit is now available to some companies incorporated in Singapore and who undertake R&D in Australia. Who is eligible? Singaporean entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment in Australia. What's it worth? The - [U.K. businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-united-kingdom/) - The 43.5 cent ‘cash back’ benefit is now available to some companies incorporated in the United Kingdom and Ireland and who undertake R&D in Australia Who is eligible? U.K and Irish entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment - [U.S. businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia](https://www.swansonreed.com.au/product/45-foreign-rebate-for-australian-rd-costs-us/) - The 43.5 cent ‘cash back’ benefit is now available to some companies incorporated in the United States and Canada and who undertake R&D in Australia. Who is eligible? U.S and Canadian entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment - [Hong Kong businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-hongkong/) - 繁體中文 The 43.5 cent ‘cash back’ benefit is now available to some companies incorporated in Hong Kong and who undertake R&D in Australia. Who is eligible? Hong Kong incorporated entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment in Australia. - [New Zealand businesses are now eligible to claim a 43.5% cash rebate for R&D costs incurred in Australia](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-new-zealand/) - The 43.5 cent ‘cash back’ benefit is now available to some companies incorporated in New Zealand and who undertake R&D in Australia. Who is eligible? New Zealand incorporated entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment in Australia. - [Cantonese Translation](https://www.swansonreed.com.au/product/45-cash-rebate-for-australian-rd-costs-hongkong-cantonese/) - 43.5% ‘現金回贈’ 優惠現已適用於一些於香港註冊並在澳洲進行研究及開發的公司。 申請資格？ 香港註冊的公司，凡合乎下列條件，均可申請： 是澳洲當地營運公司； 是以稅務為目的而在澳洲營運的註冊公司；或 是澳洲常設機構。 價值多少？ 以下表格提供了明確概要： 事項 要求 集團營業額 集團之所有公司合共的總營業額少於澳元2000萬 稅務狀況 澳洲公司錄得稅項虧損 優惠 退還43.5% 的成本 (即每澳元的支出可 退還0.435澳元) 例子1： 如以下情況適用，澳洲附屬公司可能合資格申領研究及開發稅務優惠： 澳洲公司全資附屬於香港母公司，並合乎研究及開發資格； 香港公司管理在澳洲當地營運的公司； 香港公司、澳洲公司及任何其他與前述兩間公司聯營的公司，總營業額合共少於澳元2000萬。 根據合約，香港公司同意於澳洲辦事處進行研究及開發活動，而該研發活動僅為澳洲公司的利益而進行； 合約說明，澳洲公司並不擁有香港公司帶來的知識產權，但法律上擁有所有透過研究及開發活動取得的知識產權； 於2013年財政年度，澳洲公司帶來了澳元 $100,000 的研究及開發支出； 澳洲公司和香港公司需要考慮的事相差無幾，即使研究及開發項目不成功，澳洲公司還是會得到稅務優惠。 例子1： 支出 澳洲附屬公司的研究及開發支出 $100,000 澳洲附屬公司的研究及開發項目稅務優惠 $43,500 現金回贈 成立澳洲公司的要求 如外國公司打算成立澳洲公司，請留意以下幾項： 公司成立成本不得超過澳元1,500 (外加商品及服務稅)，以便註冊成為合資格申領研究及開發稅務優惠的澳洲公司。 於澳洲註冊公司需時 2-3天。 外國公司需要提供一名擁有澳洲戶籍的董事。 澳洲財政年度從7月1日開始，至翌年六月三十日結束。然則外國公司可向澳洲稅務局 (Australian Taxation Office) 提出申請更改財政年度結算日，以與母公司的時間表睇齊。 如何申領退款？ .合資格的澳洲附屬公司必需於其財政年度結束後10個月內，向 AusIndustry 登記其活動。 - [Vision Intelligence Pty Ltd and Commissioner of Taxation [2013] AATA 527](https://www.swansonreed.com.au/vision-intelligence-pty-ltd-and-commissioner-of-taxation-2013-aata-527/) - Last Updated: 30 July 2013 [2013] AATA 527 Division TAXATION APPEALS DIVISION File Number(s) 2012/1759 Re Vision Intelligence Pty Ltd APPLICANT And Commissioner of Taxation RESPONDENT DECISION Tribunal Professor R Deutsch, Deputy President Date 30 July 2013 Place Sydney The Tribunal sets aside the Respondent’s objection decision and substitutes a decision that the - [R&D Tax Incentive Claim Preparation Services](https://www.swansonreed.com.au/product/) - Swanson Reed offers 4 specialist claim preparation and advisory services: 138.5% NON-REFUNDABLE R&D TAX OFFSET: An offset available in certain circumstances where company turnover is greater than $20 million. 143.5% REFUNDABLE R&D TAX OFFSET: An offset available in certain circumstances where company turnover is less than $20 million and in tax loss. 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Click here to contact us. - [Who will be presenting...](https://www.swansonreed.com.au/will-presenting-3/) - Session 1: Protecting Intellectual Property (IP) and developed R&D Joe Seisdedos - Principal, Wrays Joe has 10 years experience at a major national firm of Patent Attorneys, primarily specialising in IT, business method and medical technologies with a background in nuclear physics, detector development and complex system simulation. Joe has a wide ranging experience - [Who will be presenting...](https://www.swansonreed.com.au/will-presenting-5/) - Session 1: Protecting Intellectual Property (IP) and developed R&D Scott Vilé - Principal, Wrays Scott specialises in mechanical technologies. He has extensive experience in drafting and prosecuting patent applications and trade mark applications. His experience extends across a wide range of mechanical based inventions. Scott also assists in the management of his client's Intellectual Property and - [Export Survey Data](https://www.swansonreed.com.au/export-survey/) - [Swanson Eligibility Wizard](https://www.swansonreed.com.au/swanson-eligibility-wizard/) - [Disclaimer](https://www.swansonreed.com.au/terms/) - General Disclaimer Our website does not give R&D tax advice. This material is produced by Swanson Reed. It is intended to provide general information in summary form on R&D tax, current at the time of first publication. The contents do not constitute tax advice and should not be relied upon as such. 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We service a diverse range of clients from technology start-ups to billion-dollar ASX-listed and government-owned corporations in the commercial aspects of research, development, management and technology transfer. Follow us on Facebook, LinkedIn or Twitter to stay up to date with job listings. ## Ess. Grid Posts - [Engineering ](https://www.swansonreed.com.au/essential_grid/engineering/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the engineering industry. Business Scenario Hunter Engineering is a family run business that is dedicated to producing custom, environmentally friendly hunting products with the use of professional machinery. With lead fishing sinkers banned in the United Kingdom, - [Biotechnology ](https://www.swansonreed.com.au/essential_grid/biotechnology/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the biotechnology industry. Business Scenario 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 - [Zoos & Wildlife](https://www.swansonreed.com.au/essential_grid/zoos-wildlife/) - This case study exemplifies the application of essential legislative requirements for eligible R&D activities as they apply to relevant activities in a zoo or wildlife industry. - [Manufacturing ](https://www.swansonreed.com.au/essential_grid/manufacturing/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the manufacturing industry. Business Scenario Wino Incorporated (Wino) is a specialist in the field of wine cellar refrigeration. In 2012, Wino was approached by a vineyard to create a solution that would allow them to reduce - [Oil and Gas](https://www.swansonreed.com.au/essential_grid/oil-gas/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the oil and gas industry. Business Scenario SafeMark Gas Experts (SafeMark) has been involved in gas detection in the workplace for over 40 years and offers safety solutions to Australian infrastructure and resource companies. To maintain - [Natural Medicine](https://www.swansonreed.com.au/essential_grid/natural-medicine/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the natural medicine industry. Business Scenario Natural Glow produces quality organic skincare made of the purest ingredients direct from distillers and growers around the world. The company continuously improves its existing ingredients through researching new filtration - [Maritime & Boating ](https://www.swansonreed.com.au/essential_grid/maritime-boating/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the maritime and boating industry. Business Scenario Carter Marine Group (CMG) specialises in marine infrastructure projects. In 2013, the company was approached by a client to create a permanent wharf in a high traffic import - [Theme Parks ](https://www.swansonreed.com.au/essential_grid/theme-parks/) - This case study exemplifies the application of essential legislative requirements for eligible R&D activities as they apply to relevant activities in a theme park environment. Business Scenario Waveland is a popular water park that offers riveting visitor experiences tailored for domestic and international guests. Waveland is constantly adding new and exciting activities for its customers, thus engaging - [Transportation ](https://www.swansonreed.com.au/essential_grid/transportation/) - This case study shows the application of basic legislative requirements for qualifying R&D activities as they apply to relevant activities in the transportation industry. - [Aviation ](https://www.swansonreed.com.au/essential_grid/aviation/) - This case study shows the application of key legislative requirements for qualifying R&D activities as they apply to relevant activities in the aviation industry. Business Scenario Airtime Helicopters (Airtime) was established in 2008 to provide charter, scenic and photography services. Airtime felt a need to further enhance the recording quality and stability of its current camera unit - [Logistics ](https://www.swansonreed.com.au/essential_grid/logistics/) - This case study shows the application of key legislative requirements for qualifying R&D activities as they apply to relevant activities in the logistics industry. Business Scenario Link Logistics (Link) is a world renowned vehicle-telematics designer and supplier. Link is constantly conducting research and development work to continue providing its clients with innovative solutions. There are many - [Automotive ](https://www.swansonreed.com.au/essential_grid/automotive/) - This case study shows the application of key legislative requirements for qualifying R&D activities as they apply to relevant activities in the automotive industry. Business Scenario Raceway Engineering (Raceway) is an automotive company that specialises in building engines for off-road speedway sprint cars. To stay at the top of the market, Raceway is always conducting R&D work - [Architecture ](https://www.swansonreed.com.au/essential_grid/architecture/) - This case study exemplifies the application of essential legislative requirements for eligible R&D activities as they apply to relevant activities in the architecture industry. Business Scenario Freeman Home Builders (Freeman) is a custom home construction company involved in designing, constructing and managing home builds from conception to delivery. In 2012, Freeman identified that the inefficiencies that - [Agriculture](https://www.swansonreed.com.au/essential_grid/agriculture/) - This case study exemplifies the application of key legislative requirements for eligible R&D activities as they apply to relevant activities in the agriculture industry. Business Scenario AgriFarm provides affordable chemicals and other crop-protection methods to farmers within Australia. To continue providing its customers with low-cost farming solutions, AgriFarm regularly engages in R&D activities. 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