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 Income Tax Assessment Act 1997 (ITAA97). The determination addresses the question of when to include the Design Expenditure in the first element of the cost […]
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.
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 operates whereby a company forfeits a general income tax deduction for their R&D expenditure in exchange for a turnover determined R&D Tax Offset. The permanent […]
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 dollar for dollar matching of industry contributions by the government (which is currently set at 0.5 percent of gross value of production) should be halved […]