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:
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.