Watermark Advisory Services

Watermark has a fresh way of thinking: we understand the importance of protecting intellectual property, but we also know that organisations need to look beyond this to leverage their intellectual assets as an integral part of their business strategy.

What is the R&D Tax Incentive Program?

The Government's Research & Development (R&D) Tax Incentive Program is designed to encourage industry to conduct research and development and is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO).

Companies can offset the cost of their R&D more quickly than before, particularly through the refundable tax offset on eligible R&D expenditure for small to medium sized companies. From 1 July 2016, the program offers two levels of benefit:

  • a 43.5% refundable tax offset for eligible entities with an aggregated turnover of less than $20M or,
  • a 38.5% non refundable tax offset for eligible entities with an aggregated turnover of greater than $20M.

Getting a tax credit for your R&D

With the benefit of both first hand experience in innovation and in R&D tax in chartered accounting firms, we provide assistance to companies conducting eligible R&D activities to gain access to their full tax entitlements afforded to them from the Government’s R&D tax incentive program.

The combination of our in-depth knowledge of your R&D activities, and our deep technical expertise in robust, substantiated and successful R&D tax claims perfectly positions us to add another dimension to your intellectual asset management. We can:

  • identify and document eligible R&D activities
  • undertake cost assessment and maximise R&D tax entitlements
  • register your activities with AusIndustry and provide you with an R&D tax program 
  • develop streamlined processes for the capture of R&D information
  • assess supporting documentation to ensure compliance requirements are met
  • maintain R&D audit ready files
  • obtain successful outcomes from ATO/AusIndustry audits
  • advise about global R&D tax incentives
  • provide overall project management including review, recommendations, implementation and audits

What is the deadline?

R&D activities must be registered with AusIndustry within ten months from the end of your income year and the related R&D tax schedule would then be lodged as part of your company’s income tax return. You must maintain contemporaneous documentation of the R&D activities and related expenditure.

More information

To find out more about the R&D Tax Incentive Scheme, your eligibility or whether your R&D activities meet the criteria, please email d.mumford@watermark.com.au or contact David Mumford on (02) 9888 6600.