RESEARCH & DEVELOPMENT TAX SERVICES
The process of accessing R&D Tax benefits can sometimes be daunting for the inexperienced or companies lacking time and resources. Our R&D taxation specialists can provide tailored assistance to suit your needs, helping you maximise your ability to access these generous schemes.
The Federal Government recognises the importance of investment in innovation and rewards Australian companies undertaking research and development (R&D) by allowing them to claim an additional tax deduction (or offset) for eligible expenditure.
In 1986 the original R&D Tax Concession was introduced with the goal of encouraging businesses to innovate through the development of new and improved products, processes and services for commercialisation, all of which are viewed as key drivers of productivity, international competitiveness and economic growth.
For income years commencing from 1 July 2011, the R&D Tax Incentive replaces the R&D Tax Concession which seeks to better target and increase the level of financial support provided by the Federal Government.
Our research & development taxation specialists are experienced in assisting businesses to understand their R&D tax entitlements and to maximise the benefits associated with accessing the R&D Tax schemes. Our team is also skilled in advising companies on the relevant documentation requirements, assisting in government audit defences and assisting with the transition to the R&D Tax Incentive scheme.
Key business issues
- Are you identifying all eligible R&D activities that are being undertaken within your business and maximising your benefit?
- Are you confident you understand the substantiation requirements associated with claiming the R&D Tax Concession, and how these may change under the R&D Tax Incentive scheme?
- Have you considered all forms of government assistance for which you may be eligible?
How we can help you?
BDO provides research & development taxation assistance in a number of ways including:
The first hurdle to any claim is to ensure that only projects which meet the legislative criteria are claimed. R&D projects can vary markedly from industry to industry. Our R&D tax team has extensive experience across a wide range of industries, and brings together a diverse range of technical capabilities from areas such as taxation, transfer pricing, law, science and accounting. This diversity in experience ensures that we are well-positioned to assist you in identifying all relevant R&D activities to maximise your claim.
R&D claim preparation
The preparation of an R&D tax claim involves the collation and analysis of a vast amount of technical information, the application of complex legislative requirements, the preparation of formal government documents and additional technical documentation, and the utilisation of detailed accounting methodologies. Our R&D tax team is highly skilled in the various aspects of preparing an R&D claim and are able to draw upon a wealth of experience to ensure that your claim is professionally prepared and administered.
BDO now has available an easy to use online tool, the R&D Tax Incentive Eligibility Tool, to help you assess R&D tax benefits for which you may be eligible. To see if your business has a basis for preparing a claim, click here.
Substantiation and process improvement
Considerable documentation is generated through the conduct of R&D activities and the government requires a high level of substantiation of all activities claimed. Our R&D tax team can provide expert advice regarding the documentation that must be maintained to support a robust R&D tax claim. In addition, our team can draw upon considerable expertise in order to improve our client’s ability to identify, document and therefore claim eligible R&D activities.
Review and audit assistance
The Australian Tax Office and AusIndustry (the regulatory bodies administering the scheme) routinely review R&D tax claims. Recently, there have been increases in AusIndustry audit activity with respect to the activities claimed by businesses under the R&D tax scheme. Our R&D tax team have extensive experience liaising with government representatives and ensuring that the R&D tax claims made by our clients are upheld following government audits.
Grant application assistance
In addition to the R&D tax programs, local, state and national governments also provide other forms of financial assistance to Australian businesses. In particular, government incentives are increasingly being made available to businesses that seek to invest in projects that drive improved sustainability of their operations and increase competitiveness within the market. Our team regularly review the grants and incentive schemes that local, state and national governments make available to Australian businesses, making us well-positioned to provide advice, or to assist you with the preparation of relevant grant applications.