Strong accounting systems and processes are critical for manufacturers. With extensive expertise in manufacturing consulting, we specialise in managing your accounting and tax compliance needs, and advising on systems, processes, and software solutions for your manufacturing business.

Our advice covers:

• Compliance – Managing your accounting, tax and corporate compliance obligations
  Structuring – Ensuring that your Manufacturing business is structured appropriately to manage risks, protect assets, and to optimise tax and financial outcomes
  Strategic Outsourcing – Outsourcing of accounting, tax, payroll and other business functions to streamline your back office and ensure you have accurate accounting records
  Management Reporting – Delivery of reliable, accurate and real-time financial reporting that you can use to make critical business decisions
  Advisory services – Experienced RSM Partners can provide a fresh view of your business and a sounding board for manufacturing business Managers and Directors on key business strategy and decisions. Including identifying risks and uncovering opportunities
  Infrastructure - Implementing efficient digital accounting systems and business software solutions
  Business Owner Goals – From creating internal efficiencies and freeing up time for life, to succession planning for family businesses 

Through M&A lead advisory, debt advisory, due diligence and technical services such as valuations, tax advisory and financial modelling we assist Manufacturers from growth and funding stages, through to business sale and IPO.

Our services include:

• Mergers and Acquisitions
• Business Divestments
• Transaction Support and Due Diligence
• Capital Market Support
• Valuation and Expert Reports
• Litigation Support and Forensic Investigation
• Financial Model Construction and Review

For insights into your manufacturing chain in areas such as business process improvement, customer growth, data management and more.

Our services include:

• Predictive Maintenance
• Demand Forecasting
• Quality Prediction
• Supply Chain Optimisation
• Yield Optimisation

To help improve your business’ cashflow, there are different options of funding which you may want to consider.

The R&D Tax Incentive (RDTI)

For companies undertaking Research and Development (R&D) activities, the Federal Government’s primary means of support is the RDTI program. This is an industry-agnostic, entitlement program, which means if a company is doing eligible R&D activities, it’s entitled to make a claim.

The Cash Benefit

There are 2 levels of support available:

• For companies with aggregated (global) turnover of <AU$20m, a refundable tax credit of up to 43.5c (or 48.5c if certain requirements are met) per $1 spent on eligible R&D.  This translates to an additional tax saving of 18.5c per $1 of R&D expenditure; and
• For larger companies (AU$20m+ aggregated turnover), a non-refundable tax credit of between 8.5c and 16.5c per $1 spent on eligible R&D depending on the business’ R&D intensity.

This means that for $300,000 spent on eligible R&D activities, there is typically a cash benefit of between $25,500 and $130,500 available to your company.

In Manufacturing, the types of R&D activities can range enormously from the development of new or improved products or processes (for example, for Medical Equipment or new or improved products in the Industrial Manufacturing or FMCG sector), the implementation of new manufacturing processes and production lines or the development of new equipment (such as in Defence).

Eligible R&D Activities may be core or supporting activities. Core R&D activities must:

• Include development of new knowledge (including new or improved products, processes, technologies, etc);
• Be based on principles of established science and be experimental in nature, progressing from hypothesis to experiment, observation and evaluation, leading to a conclusion; and
• Have an unknown outcome which cannot be determined in advance based on existing knowledge or information.

Timing is Critical
Companies can access the R&D Tax Incentive annually. To do so, you must lodge an R&D Application Form retrospectively within 10 months of financial year-end to register the eligible R&D activities.

So for 30 June year end, companies have until 30 April in the following income year to lodge the R&D Application Form. The eligible costs are lodged via the Income Tax Return (which can be amended for the R&D claim if this has already been submitted).

R&D Financing

For those accessing large R&D refunds, there are third party R&D financiers who specialise in providing an advance against the R&D refund due, i.e. as the money is being spent during the financial year and thus allowing you to access your cash earlier. If this advance is spent on more R&D activities, it automatically increases your potential R&D claim for that year as well.

Advanced or Overseas Findings

Where R&D activities cannot be undertaken in Australia and certain criteria can be met, it is possible to make an Overseas Finding application. This is separate to the standard annual process and enables entities to claim expenditure on overseas based activities at the same level of benefit as Australian based activities.

Should an entity need a high level of certainty, for example setting up a large manufacturing facility with extensive R&D to be undertaken in Australia, then it may be suitable to seek an Advanced Finding. An Advanced Finding provides certainty regarding whether your activities are eligible and is binding for up to three years from the start of the income year in which your application was made.     

Grants
There is an array of different grant programs available for your business in relation to both manufacturing and production activities or site development. This might include factory expansion, attracting regional talent, building a new manufacturing facility or solving challenges faced by the industry.

Both the Federal and State governments offer grant programs, as well as corporates and community organisations.

Experience our understanding of tax governance, specialist skills and industry knowledge which helps our clients see opportunities and fulfill compliance.

Our range of services:

• Tax compliance
• GST consulting and compliance
• Global employer services
• Income tax consulting
• International tax and transfer pricing
• R&D tax incentives
• Tax planning and transaction support
• Tax risk management
• Government grants