📌 R&D Tax Incentive - eBulletin

You heard it here first!

Have you heard about the changes coming to the R&D Tax Incentive program? Listen to the latest episode of the R&DTI Insights Podcast series to learn more. Episode 2 is out now!

Jade Hawkins, Assistant Commissioner, ATO and Kelley Wiggins, Acting General Manager, AusIndustry provide an update on the impact new legislation will have on the R&DTI. Learn about these reforms, when they will come into effect and importantly what will remain unchanged.

Update: Advanced or Overseas Findings

A positive Advance or Overseas Finding gives you assurance that your registered R&D activities will be eligible for claiming under R&DTI. It is also mandatory that you obtain an Advance or Overseas Finding for any overseas activities that you will be registering for the R&DTI.

If you're impacted by COVID and your substituted accounting period ends before 31 December 2020, you can lodge a provisional Advance or Overseas Finding application by 31 December 2020. The completed application must be lodged by 31 March 2021.

The minimum details required in a provisional Advance or Overseas Finding application are:
· Company contact details
· Descriptive name/title of each claimed R&D activity

Further information on the requirements of the provisional Advance or Overseas Finding can be found here.

Companies can continue to submit applications for Advance or Overseas Finding for the 1 July 2020 – 30 June 2021 income year before 30 June 2021.

Register your interest: Portal testing

A new way to access the R&DTI is coming in 2021 with an online customer portal and registration form currently in development.

If you are a small business who doesn’t use a Tax Agent or Consultant and you're interested in participating in testing, register your interest by emailing us at rdti.engagement@industry.gov.au no later than 20 December 2020.

Please note that places in this phase of testing are extremely limited and will be assigned on a first to respond basis.

Refreshed Guide to Interpretation

In case you missed it – the principal guidance on the program, the refreshed Guide to Interpretation is now available for download from business.gov.au/rdti .

The Guide helps you to plan, conduct and register eligible R&D. For many, the Guide is the only guidance product participants require to participate in the R&DTI program. The refreshed Guide reflects recent Federal Court and AAT decisions and features a new wayfinding structure to assist you with locating the information you need to assess whether your R&D is eligible for the R&DTI.

For a snapshot of all changes, please see this fact sheet.

Keep an eye on our events page for upcoming Webcasts about how to best use the Guide!

Software Guidance Update

In light of the Australian Small and Family Business Ombudsman Report, we have reviewed and refreshed our Software Guidance.

It is important to note that the eligibility of software activities in the R&D Tax Incentive has not changed, and any changes to the guidance materials was made to offer greater clarity and assurance.

Software development, like any other activity in any other industry sector, needs to meet the legislative definition of ‘R&D activities’ to qualify for the R&D Tax Incentive. The department applies the legislated eligibility requirements to software technology as it would to any other sector.

If you have any questions, please direct them to rdti.engagement@industry.gov.au

Insights from the Inaugural Online Roundtable

Panel members representing industry, program intermediaries, and administrators of the R&DTI met online in August and November for the R&DTI Roundtables.

You can find out more about the insights and outcomes from the August R&DTI Roundtables by reading the summaries on business.gov.au/rdti . The November R&DTI Roundtable Summary will be out soon.