May 1 Registration Deadline for R&D Tax Incentive

April 26th, 2017

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 be granted an extension of 14 days.

The R&D Tax Incentive aims to boost competitiveness and improve productivity across the Australian economy. The tax credit can be claimed by both small and large businesses for eligible activities conducted during the 2015-16 financial year. However, the incentive is especially beneficial for start-ups as it allows them to reinvest in R&D or enter the next stage of commercialising their service or product. They can receive a cash refund of 45c in the dollar for R&D spending if they do not pay tax or have any turnover.

As this is money that has already been spent, it is worth applying for the credits. To be eligible, a company needs to provide evidence that:

  • R&D spend went towards developing new knowledge
  • There were technical uncertainties about the outcome of the research
  • Experimental activities were conducting that included testing and modifications

Contact Swanson Reed to find out whether your business qualifies for the R&D tax credit or if you have any further questions.