RSM Australia

R&D tax incentive

Assisting businesses in accessing the R&D tax incentive

The R&D tax incentive is the Federal Government’s primary support program for innovation. It is an eligibility, retrospective claim based program, whereby eligible Australian companies register and claim the benefit. It is based on the principles of self-assessment, followed up with a comprehensive compliance review process by the appropriate government bodies.

Many people still do not realise that R&D tax applies to 'real world' innovation, not just high tech science projects. Companies developing and improving products and processes are equally eligible.R&D tax incentive support

In addition, many people do not realise that companies with tax losses (with grouped turnover less than $20m) are eligible to receive cash from the ATO, not just increases to future tax losses.

R&D TAX solutions for businesses of all industries

We have an experienced team of R&D tax advisers with mixed science and accounting qualifications and backgrounds. Our clients range from startups to multinational corporates, and cover industries from agriculture to banking.

We are active supporters of the Innovation Community, sponsoring events, providing speakers and committee members to a wide variety of associations and groups.

We are happy to meet and talk about how the R&D tax incentive program may benefit you at no charge or obligation.

Space: The final frontier for GST?

Space: The final frontier for GST?

The Technology and Innovation team at RSM share practical GST insights from within the developing Australian Space Industry. Goods and services tax (GST) in Space - is the supply of new and developing technology taxable?

GST and tax governance back on the agenda for boards and management

Release of ATO’s new “GST Governance, Data Testing and Transaction Testing Guide” Summary
Taxation Determination

Taxation Determination TD 2020/D1 release creates issues

In a move that is sure to cause headaches for companies claiming the R&D Tax incentive, the ATO published draft Taxation Determination TD 2020/D1 Income tax: notional deductio

Webinar: Australian R&D Tax Incentive | China Practice Group | 28 July 2020

The China Practice Group hosted the Australian R&D Tax Incentive webinar exclusively for members of the China Chamber of Commerce in Australia (CCCA Sydney branch).
 Corporate Tax

OECD's Annual Corporate Tax Statistics Publication

The OECD has released the 2nd edition of its annual Corporate Tax Statistics publication.

R&D year end planning during an unprecedented time

In what has been an unprecedented year so far around the world, business and life in Australia have never been more different.
The R&D Tax Incentive and Your Business

The R&D Tax Incentive and Your Business

The Research and Development Tax Incentive is a Federal Government initiative to encourage companies to invest in innovation that benefits Australia.
R&D tax claims in the resources and mining sector

Change, risk and opportunity: R&D tax claims in the mining and resources sector

With so much change impacting business, we present a summary for the mining and resource sector highlighting issues that could impact (some positive) their current and future R&D tax claims.

A lift in benefit: Recent measures for depreciating assets used for R&D purposes

Over the past 12 months, including due to the COVID-19 economic downturn, a number of measures have been introduced by the Federal Government to provide greater access to tax deductions relating to depreciating assets.
Has coronavirus impacted the R&D Tax Incentive – what claimants need to know

Has coronavirus impacted the R&D Tax Incentive – what claimants need to know

The short answer is, not much. While COVID-19 wreaks havoc on humankind and the economy alike, the R&D incentive may just be the silver lining in a coronavirus shaped cloud.

The Moreton Resources Case - R&D tax incentive in Australia

The Moreton Resources Case – Finally certainty amongst the uncertainty for the R&D tax incentive in Australia, but only if you know how to find it.  
Indirect Tax

RSM Australia appoints Sam Mohammad as national head of indirect tax practice

RSM Australia (RSM), one of the largest mid-tier accounting firms in Australia, has announced the appointment of Sam Mohammad as national head of its indirect tax practice.

R&D tax update | what you need to know in 2020

30 April 2020 Deadline Approaching A general reminder for year-ended 30 June 2019 companies planning on accessing the R&D Tax Incentive program that you must lodge your R&D Application Form with AusIndustry within ten (10) months of the relevant financial year-end.

Accounting for the R&D Tax Incentive

The R&D Tax Incentive has been in place since 2011.  However, uncertainty remains over the appropriate accounting treatment for it in financial statements.  Ralph Martin, RSM’s National Technical Director, considers the matter:

Budget "sweeteners" diminished by downside economic risks

The budget will be an opportunity to provide a suite of sweeteners to voters ahead of the expected May election.

Proposed R&D tax changes don't stand up to Senate scrutiny

The Senate’s Economics Legislation Committee report was tabled on Monday 11 February and in its collective wisdom, the committee has put on hold proposed changes to the research and development (R&D) tax incentive.

What foreign owners of residential property need to know about lodging their annual return

In late 2017, the Australian Federal Government introduced an annual vacancy fee to be levied on  foreign owners of residential property, where the property is not occupied or generally available on the rental market for at least 6 months in a 12 month period. 

How the PM’s defeat impacts corporate tax rates

Following the proposal for reduced tax rates for corporate entities in 2016, the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 (the Bill) was ultimately defeated in the Senate on 23 August 2018 by a vote of 36 to 30. 

Foreign incorporated companies and changes to the tax ruling - What you need to know.

Most will remember the 2016 High Court ruling in the case of Bywater Investments Limited.

Reduced corporate tax rates - what rate of tax will my company pay?

While the legislation is transitioning, some have been left confused about the application of reduced corporate tax rates and the details of eligibility criteria during this state of limbo. To provide some clarity, we take a closer look.

Fringe Benefits Tax – ATO finalise their position on private use of vehicles.

New guidelines for private use exemptions of eligible motor vehicles for Fringe Benefits Tax (FBT) - ATO says yes to making a quick stop to grab a coffee (as long as it doesn’t add more than 2kms to your trip to work and is infrequent) but no to heading to cricket practice after work. 

R&D Tax Incentive Reform - Call for submissions

R&D tax reforms, as announced in the 2018-19 Federal Budget, are steps closer to implementation with the Treasurer and Minister for Jobs and Innovation releasing draft legislation proposed to enact the changes. 

New GST withholding rules - what property purchasers and developers need to know

The Federal Government has passed legislation that will require purchasers of new residential properties to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. The measures were first announced in last year’s Federal Budget. The legislation specifies: 

Budget falters on R&D tax (and how this impacts startups)

It’s the third budget handed down by Treasurer Scott Morrison and for those of us in the innovation space, a whole lot to digest. After poring over the detail, I’ve created a summary of notable items for your reading pleasure (disclaimer: it’s not all pleasant).

R&D tax due diligence important for SMSF investors

With the leading businesses in the world now being technology and intellectual property-based rather than physical asset-based businesses, investors are looking more proactively for early-stage companies that have similar characteristics.

Are you missing out on tax incentives?

If you’re the owner of a company that, unbeknown to you, conducts research and development (R&D) which could qualify for tax incentives – to the tune of 45 cents for every dollar spent – now’s the time to explore how much tax money you might be leaving on the table.

Government Crackdown on Rental Property Deductions

The Government announced in the 2017 Federal Budget that it would be making changes to the legislation regarding Rental Property Deductions under the guise of “reducing pressure on housing affordability”.

Software Based R&D Claims – Uncertainties From ‘Agile Development’

Recent examples of ‘agile development’ from the R&D Tax Incentive administrator have brought uncertainty to the start-up sector. Taxpayers must be more vigilant than ever in how Software R&D claims are prepared. What Is the R&D Tax Incentive?

ATO alert sparks concern for software development R&D Tax Incentives (TA2017/5)

The recent alert issued by the ATO (TA2017/5), has raised some fears and concerns among innovators in established technology firms  as well as the start-up community.  

Making sense of eligible Research and Development tax incentives

Does your company conducts Research & Development (R&D)? Did you know: you may qualify for tax incentives (45 cents per $1 spent!) View our tax concession examples.  

R&D cuts, Tax cuts – is it all bad news?

The reduction in the R&D tax incentive rates and the positive news for SMEs During the 2016 Federal Budget in May, the Government announced a number of potential corporate tax rate cuts over the next 12 years, to progressively reduce the corporate tax rate from 30% to 25% for all corporate tax entities ultimately regardless of turnover.

1.5% Cuts to the R&D Tax Incentive in the Omnibus Bill

The Omnibus Bill passed by parliament has cut the rates available under the Refundable and Non-Refundable R&D Tax Offsets by 1.5% for the first $100m of eligible expenditure.

R&D's Frequently Asked Questions

R&D Tax Director Stephen Carroll answers the most frequently asked questions of startups when considering the R&D Tax Incentive.

What is the innovation investment tax incentive?

RSM's R&D Tax Director Stephen Carroll explains the innovation investment tax incentive for Australian businesses and gives examples of early stage innovation businesses who would benefit from the incentive.

Innovation Investment Tax Incentive

On 1 July 2016 the Government’s new tax incentive to support innovation investment will come into effect.  The Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 was passed earlier this year and is a cornerstone of the National Innovation and Science Agenda (NISA), released by Prime Minister Turnbull late last year.

Budget 2016 for R&D and Innovation

The support for innovation in the 2016/17 Budget can be simply summarised as disappointing tinged with relief in a lack of cutbacks. There are only very minor announcements for innovation support through specific focuses, such as $200,000 for FinTech and $2.4 million for Landing Pads in Singapore and Berlin.

Budget 2016 for Corporations

Cuts to Company Tax Rate The company tax rate will be reduced to 25% over the next 10 years. The company tax rate will be progressively reduced to 25% between the 2016/17 and 2026/27 income years.

National Innovation and Science Agenda

A detailed analysis of what you need to know about Prime Minister Malcolm Turnbull's highly anticipated $1.1 bn innovation strategy The Federal Government has released its much anticipated Innovation Agenda but what does this mean for business and individuals.  The framework of the government’s innovation policy focuses on four key pillars:

R&D expenditure - is it really incurred?

Last week, the full federal court in Commissioner of Taxation v Desalination Technology Pty Ltd [2015] FCAFC 96 overturned the decisions of the Administrative Appeals Tribunal and the single judge of the federal court in denying the taxpayer a research and development (R&D) deduction for amounts incurred by an associate party on behalf of the taxpayer.

RSM’s response to Vision for a Science Nation: Australia's future

While the R&D Tax Incentive is one of the effective mechanisms for stimulating innovation in Australia, Science Technology, Engineering and Mathematics (STEM) competitiveness can be improved by enhancing and developing new incentives to increase Australia’s investment in innovation, according to RSM.

2015-16 budget for research and development

There was minimal content in the Budget that will have an impact on Australian innovation. The following are the relevant key Budget announcements: Crowd funding