📌 R&D Tax Incentive - eBulletin

The R&D Tax Incentive and software-related R&D activities

'Software-related activities and the Research and Development Tax Incentive' is the latest sector-specific guidance product to be published under the AusIndustry/ATO joint administration. The refreshed guidance was developed in consultation with stakeholders who have a deep understanding of the software development sector, including the Tech Council of Australia, tech companies and R&D consultants.

The new guidance will help companies self-assess the eligibility of their software-related R&D activities and successfully access the program. Access the guidance directly through this link. You can also register for an information session.

Don't miss the registration deadline

If your income year ended on 30 June 2021, the deadline to submit your 2020/21 application is 3 May 2022.

Applications can only be submitted through the R&DTI customer portal. If you haven’t logged into the portal before, step by step instructions can be found on the business.gov.au website.

Remember, you will not be able to submit an application past the 3 May 2022 deadline, unless you apply for an extension of time in advance through the portal.

Changes to the Regulations and Decision-making Principles

The Industry Research and Development Regulations and the Industry Research and Development Decision-making Principles under the Industry Research and Development Act 1986 have been remade with minimal changes to ensure continuity of the administration of the R&D Tax Incentive, as the 2011 version of these instruments were due to automatically end this year.

The Regulations direct the way we manage approved forms, findings certificates, and requirements for research service providers. They commenced on 22 March 2022. The Decision-making Principles apply in relation to decisions on extensions of time, refusal to make requested findings, and variations of registrations. They commenced on 31 March 2022. The remade instruments contain minimal changes to ensure consistency and continuity.

These changes were informed by public consultation and include:

adopting the 2020 Australian and New Zealand Standard Research Classification (ANZSRC) codes in all application forms (the 2008 ANZSRC codes were prescribed in the 2011 Regulations) - apart from this, the forms remain substantially the same

removing duplication in reporting and registration for RSPs by taking out the requirement to demonstrate they are “competent” as described in subsection 3.02(3) of the Industry and Research Development Regulations 2011

changing the maximum period allowable for extensions of time from three months to 92 days so that the period of extension is the same regardless of the month in which the application for an extension of time is made under the Decision-making Principles.

Learn more about the R&D Tax Incentive

Interested in learning more about the R&D Tax Incentive? Join us for one of our upcoming webinars.

This hour-long session will walk you through an overview of the program, explain the key eligibility criteria that you should review and assess before you apply, discuss the application process, and provide tips for keeping records.

Board of Taxation Review

The Board of Taxation has published its review of the Research and Development (R&D) Tax Incentive dual agency administration model.

The Board’s report provides valuable insights into ways to enhance the administration of the R&D Tax Incentive. The government will consider the findings.

Read the Review of R&D Tax Incentive Dual Agency Administration Model report (PDF) on the Board of Taxation’s website.