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R&D tax update and issues for construction activities
Published on 01 Aug 17 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The research and development (R&D) tax incentive, now housed in Div 355 of the Income Tax Assessment Act 1997 (Cth), has undergone significant change and development since its enactment in 2012. This article updates recent developments affecting the operation of the incentive, in particular the legislated reduction in R&D tax offset rates and the corresponding interactions with legislated and proposed reductions in company tax rates, the new guidance material released by AusIndustry and its impact on eligibility and disclosure requirements for companies registering activities under the incentive, and the recommended changes currently under review by the government. The article also discusses compliance issues of particular relevance to the building and construction industry, namely, identification of the scope of eligible R&D activities within a project, including assessment of the purpose for which activities were conducted, exclusions within the legislation for building expenditure, and feedstock adjustments where commercial outputs are produced during R&D activity.
Author profiles
Damian Smyth
Damian is Swanson Reed’s Chief Executive Officer. He is active in innovation tax policy issues and regularly involved in consultations during proposed changes to the R&D tax incentive and other measures impacting start-ups and companies undertaking R&D activity. Damian has a wealth of experience in the hands-on preparation and substantiation of R&D claims and managing ATO/AusIndustry compliance matters. - Current at 05 September 2017
Gloria LIM
Gloria is an Analyst at Swanson Reed.
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.