Financial Year ended 30 June 2013 

The cut off date for claiming the R&D Tax Incentive for R&D activities conducted in the last financial year is fast approaching.  Companies with eligible R&D expenditure incurred during the 2013 have 10 months from the end of the financial year to lodge a claim by registering their R&D activities with AusIndusty.

Companies operating on a standard 1 July – 30 June accounting period have until have until April 30th 2014 to make a claim for their 2013 financial year.

The R&D benefit is significant with small to medium companies with a turnover of less than $20M eligible for a 45% tax offset on R&D expenditure which may be refundable for companies in a tax loss position. Larger companies are eligible for a 40% benefit.

If you have already lodged your tax return for that period an amendment to the return can be requested to include the R&D tax incentive claim, after the registration process has been completed.

What should companies do now?

Companies who have not yet made a claim should review their R&D activities and expenditure for 2013 year.  If the identifiable R&D expenditure exceeds the minimum claim expenditure threshold of $20k in that year then a R&D tax incentive  claim should be made.  Watermark Advisory Services can assist companies in compiling an accurate and timely application to meet that deadline.

For companies who have already completed their 2013 claim, now is also a good time to start thinking about the current financial year.  Accurate and contemporaneous documentation is the key to a robust R&D claim and systems should be in place to identify, retain and manage this documentation.  Watermark Advisory Services can assist companies in developing effective R&D documentation management practices.

Time slips by all too quickly so don’t leave consideration of the R&D tax incentive to the last minute.