R&D update - Autumn 2006 - Avustralya

 

For the last few months the Department of Industry, Tourism and Resources (DITR) has been evaluating the Tax Offset and R&D Incremental (175% Premium) Tax Concession aspects of the R&D Tax Concession program.

 

The project is aimed at identifying how efficient and effective each of the two measures has been. DITR is examining the level of uptake for each measure, the compliance costs involved, the extent to which businesses have benefited from the measures and whether more R&D is being conducted as a result of them. DITR is also examining the extent to which the requirement for an R&D Plan has contributed to strategic research within businesses.

 

The evaluation is based on the first three years of R&D program registration data following the introduction of the Tax Offset and the 175% Premium in 2001, and information gathered during recent consultations with tax concession claimants and other stakeholders.

 

DITR will report its findings from the evaluation project once work is completed.

 

 

The Tax Concession Administration Consultative Group (TCACG) provides a forum for representatives of R&D Tax Concession claimants, industry associations and consultants to exchange information and discuss concerns about operational and administrative aspects of the R&D Tax Concession with AusIndustry, the ATO, DITR, etc.

 

For example, at the most recent TCACG meeting, the ATO drew attention to an emerging compliance issue. The ATO’s concern relates to an increase in Tax Offset claims being

based on accrued expenditure, particularly notional salary payments, in circumstances where there is a question mark over whether the expenditure has been incurred.

 

Deloitte is a regular participant at TCACG meetings. Although the numbers at TCACG meetings are restricted, AusIndustry encourages businesses with an interest in the R&D Tax Concession to request an invitation if they wish to attend.