Don’t think you are innovating? Think again – quickly! End of April deadline is looming.
Have you ever heard that saying “you don’t know what you don’t know?” In the case of Research and Development tax incentives, it is often the instance that businesses are unaware of its existence.
The words ‘Research’ and ‘Development’ can often confuse people and they quickly assume that it won’t apply to them. Think again. Most people starting or running a business are unassuming and focussed on their core activities. They are sometimes ‘too close’ to what they are doing and don’t realise they are quite innovative.
Innovation is the key to the R&D tax incentive. In simple terms, the government wants to encourage businesses to innovate. The economic benefits of doing so can be a topic for another day, although you don’t have to be a rocket scientist to work it out.
On the subject of rocket science, you might be surprised as to what qualifies as innovation. Think along the lines of creating something new – from a completely new product or service to developing a new processes, machinery or technology to improve an existing business or offering. If you have done something ‘new’, now is the time to determine if you may be eligible for the Research and Development tax incentive.
Some rules and high level considerations include:
- Do you have an eligible Australian company to register and apply?
- Is your revenue less than $20 million per annum?
- Your plans and activity appropriately documented?
With the end of April fast approaching, now is the time to consider if you are eligible for the Research and Development tax incentive. If so then you must register with AusIndustry immediately.
While there is some work involved in determining your Research and Development activity – it’s well worth it. With up to 45% tax offset available for eligible activity, the opportunity to inject cash back into your business is calling.
With the clock ticking for this year and only a few weeks to determine if you are eligible for the incentive, it may be time to seek help. The team at Crowe Horwath can help you quickly assess your Research and Development status and if you qualify, help you through the application process to ensure you don’t miss out. If you are interested in accessing the Crowe Horwath specialists and receiving a complimentary one hour consultation please contact firstname.lastname@example.org.
John Micalizzi is the Business Development Director for Crowe Horwath – Ready Fund Go Accounting Experts. His role is to connect Ready Fund Go campaigners and friends to the right accounting and advice specialists within Crowe Horwath.
Business Development Director
Tel 02 9619 1801
Mob: 0411 706 228