Applying for the R&D Incentive

So… how do you apply?

Firstly you need to register each of those R&D projects with AusIndustry by lodging an online form. Your R&D projects need to be registered each income year and the registration form must be submitted no later than 10 months after your year end.

For a 30 June 2015 year end, your form must be submitted by 30 April 2016.

What happens once AusIndustry have approved your R&D projects?

They will issue you with a R&D registration number. This should be included in your company’s tax return for that income year to allow you to claim the incentive.

You claim the R&D tax incentive through the R&D schedule in your company’s annual income tax return.

The ATO require two types of record keeping if you plan to register for the R&D incentive:

1. Records need to be kept to show that each registered project is in fact R&D.

This should document the unknown aspects of the project and your hypotheses on solving the issue. It should include all or any one of the following:

  • notes from meetings with technical staff or associates about the R&D projects
  • background research you may have conducted
  • any test results from your experimentation
  • all versions of any concept plans you may have devised
  • 2. You will need to keep documentation to support all R&D expenses incurred throughout the year.

    This includes not only invoices, and receipts, but also timesheets for a log of time spent on activities. You will also need to show how the costs link to the R&D activities.

    All of this documentation that relates to the R&D project and its expenses needs to be kept for five years.