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EOFY Research & Development Tax Incentive Checklist

Date: 19 June 2017
Author: Kate Mahady
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Are you eligible to claim?

 Are you a company incorporated in Australia?

  • Do you have a number of related entities in your group?
  • Are you claiming under the right entity?

Are you conducting eligible R&D activities?

 Were you developing a new or improved product, system, device, process or service?
 Were the activities experimental where the outcome was unknown at the outset?
 Did you follow an experimental progression of work?
 Was there technical uncertainty or risk in the activities?
 Were you creating new knowledge?
 Did you encounter problems which required innovative problem solving approaches?

How have you documented your R&D activities?

 Did you document what was unknown at the start of your activities?

Documents may include:

  • Competitor analysis
  • Review of current state of the industry

 Did you set up a documentation or record keeping, including your technical hypothesis or objective when your activities commenced?

Documents may include:

  • Business case
  • R&D project plan/scope
  • Product development meeting notes
  • Emails with contractors/consultants
  • Concept drawings
  • Internal emails

 Did you document your experimental process, test results, analysis, outcomes?

  • Experimental data
  • Trial plans
  • Measurements
  • Engineering drawings and revised drawings
  • Emails describing the experiment or results
  • Observations, photos, videos
  • Discussions or meetings notes
  • Test reports
  • Consultant/contractor reports

 Did you document your outcomes against your initial experimental aims?

How have you tracked your R&D expenditure?

 Did you set up a work order or project code?
 Did you develop templates for tracking project costs?
 Did you track personnel time and what activities they related to? (Timesheets, calendar entries)
 Have you separated out your R&D activities from your “business as usual” activities?
 Have you separated your ‘core’ from your ‘supporting’ R&D activities expenditure?
 Have you substantiated all direct costs? (Materials, travel, external testing)
 Did you sell the outcome of your R&D?

 

Key considerations to discuss with your R&D advisor prior to EOFY

 EXTERNAL CONTRACTORS/CONSULTANTS:

  • Did you engage any external contractors? The 'On Own Behalf' rules apply. Review your contracts for eligibility.

 GOVERNMENT GRANTS:

  • Did you receive any government grants related to the R&D activities? Clawback adjustment may apply.

 FEEDSTOCK ADJUSTMENT:

  • If you're selling or have sold the outcome of your R&D activities (goods or materials), a Feedstock Adjustment may apply.

 ASSOCIATE PAYMENTS:

  • Ensure any payments to Associates are properly incurred, and in the right entity prior to year end.

 

We work with companies to provide the tools to track your R&D activities and substantiate your R&D claims.  For an obligation free assessment of your documentation and your company's compliance, contact us on:

Kate Mahady - kmahady@fbrice.com.au

 

Tags:  EOFY, Research and Development Tax Incentive, Kate Mahady, FB Rice, June 30 2017
 
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