Get in early with your R&D claim

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Yes, that’s right – it’s now time to lodge your R&D tax incentive claim for research and development completed in the 2018-19 financial year.

The Federal Government’s Research and Development (R&D) Tax Incentive provides a significant incentive for businesses to invest in crucial research and development to drive  growth and innovation.

For tax law purposes, R&D is considered to be experimental activities that are conducted for the purpose of generating new knowledge. As this term is relatively broad, R&D can be applied to many different industries including information and communications technology, life sciences, fast-moving consumer goods, engineering, etc.

The R&D Tax Incentive can be claimed annually following the end of the financial year, so it’s now time to prepare and lodge your claim.

So, why is it beneficial to prepare and lodge your R&D claim early?

  1. Early lodgement means quicker processing – with electronic lodgement we find that processing of an R&D claim with AusIndustry typically takes up to 10 business days. However, by getting in early before other applicants, the processing time could be significantly less.
  2. Lodging early provides clarity – by outlining the R&D activities conducted during the prior financial year you have greater clarity regarding the costs of the activities. This will give you better insight regarding your tax position prior to lodging your tax return.
  3. Forward planning – by lodging your R&D claim early you can better plan your projects for the next R&D claim, in turn, allowing you to maximise your future R&D claim by ensuring you keep on file the right documents that can be used for substantiation.

If you would like to lodge your R&D claim early to give your business a boost for the new financial year, contact the BridgePoint Innovation Advisory team on 1300 656 141.

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