Frequently Asked Questions
To be eligible to register for the R&D Tax Incentive you need to tick a few boxes. These include, among others:
- You are an Australian company (some Foreign companies can be eligible);
- You are in business to make money;
- You are carrying out eligible R&D activities; and
- You have spent at least $20,000 on your eligible R&D activities.
For more about eligibility or for a comprehensive evaluation using our free, anonymous self- assessment test click here.
Once you have determined that you are eligible accessing the benefits of the R&D Tax Incentive program is a two stage process.
Step 1: You must register your eligible R&D activities with AusIndustry by completing one of their R&D Tax Incentive Application forms. rdmGO is designed specifically to help you complete this form and this is also one of the many R&D management functions included in rdmLIVE. Once you have registered AusIndustry will provide you with a registration number.
Step 2: Once you have your AusIndustry registration number you will need to include it in the R&D Tax Schedule section of your company tax return, along with all your R&D costs and other information. This schedule is the trigger that will access your R&D Tax benefits when you lodge your tax return. Once again both rdmGO and rdmLIVE can assist you in preparing this schedule.
The benefits from registering for the R&D Tax Incentive come in two flavours:
- Companies with a group turnover (that’s the turnover of your R&D company and all its associated entities) less than $20m which have less than 50% of their shares held by tax exempt entities are eligible for a 45% refundable tax offset; or
- Companies who don’t meet the criteria above are eligible for a 40% non-refundable tax offset.
So what does this mean? If you are eligible for a 45% refundable tax offset then you stand to receive a reduction in your tax equal to 15% of your R&D expenditure, but if you have tax losses you may be eligible to receive a refund. This will depend on the amount of your tax losses but could be as much as 45% of your R&D expenditure.
If you are eligible for a 40% non-refundable tax offset then you stand to receive a reduction in your tax equal to 10% of your R&D expenditure to either reduce your tax payable in the current year or to be carried forward to offset future income tax payments.
The R&D Tax Incentive program requires you to register your eligible R&D activities annually. Just think of it as part of doing your yearly tax return.
That depends. Everybody is different and therefore no two claims are the same. If your records are in good order and you don’t have multiple projects the process can be relatively painless but it can get complicated!
Both rdmGO and rdmLIVE are specifically designed to help you with your registration process. In addition, rdmLIVE will help manage your R&D projects, knowledge transactions and related files so you can achieve best practice record keeping processes.
Once you’ve completed your application it is lodged with AusIndustry for registration. AusIndustry undertakes to complete registration, including notifying you of your registration number, within 10 days. Mostly it takes less time than this and only very rarely does it take longer.
When you have your registration number you can complete your tax return and lodge it. The ATO undertake to process returns within 28 working days. Occasionally it takes less time but often it is longer.
No. There is no requirement to use an adviser to complete your registration. However, in certain circumstances such as if you are new to the program or short of time, it may be a more efficient and rewarding process if you do.
If you do decide to use an adviser you can talk to us, we work with excellent people who can help you get the most from our products and the program.
Here at Incite we have put significant effort into data security. Everything going in or out of either rdmGO or rdmLIVE is transferred using SSL encryption, just like when you do your banking.
Your passwords are stored using the highest standards in hashing and no one can find it out, not even us.
Our infrastructure is typical of other web applications and not only have we had our server and application run through penetration tests, we’ve even run our code through static and dynamic analysers to pre-empt possible security issues. Think that’s not enough? We run on a multi-tenant database set up. This means that your data is stored in its own database, away from everyone else’s. Best of all, your data is stored in Australia and backed up in Australia, we know where your data is unlike many other cloud based applications.
The short sharp and shiny:
- SSL Encryption
- Hashing of critical data
- Multi-tenant databases
- Penetration tested
- Statically and dynamically analysed
- Hosted and backed up in Australia
This one is easy! Just go to the log in screen and at the bottom left of the box, where it says “Forgotten password?” just click there. If you have forgotten your username as well you’ll need to get in touch with us and we’ll get you sorted.