Since the announcement in the October 2020 Budget that the R&D Tax Incentive (RDTI) cuts were not going through, the attention has turned to the thorny issue of the eligibility of software R&D. Many commentators are pushing for the introduction of a separate tax concession program for software R&D in certain circumstances. MJA Director, Ian Ross-Gowan, reflects on the wisdom…
So we’ll admit to being a bit greedier that Mariah Carey who apparently only wants “you” for Christmas. Coming off the great news in the October Budget that shored up the value of the RDTI for the 2021/22 year and beyond, MJA would like the Government to look at the following options to be placed under the R&D Christmas tree…
Immediately below is an important press release from the Federal Government regrading industry assistance. Applications for Round two of the Manufacturing Modernisation Fund (MMF) are now open. As the first of the key initiatives to be launched under the Australian Government’s $1.5 billion Modern Manufacturing Strategy, Round two of the MMF is helping to modernise our manufacturing sector. It will…
The recent passing of the Bill that preserved and, in some ways, extended the value of the R&D Tax Incentive (the RDTI) has been warmly received by the market.It follows the improved understanding of the program requirements contained in the Moreton Resources and Bogiatto cases, along with the noticeable improvement in the administration of the program in the wake of the Small Business and…
The thousands of companies that deliver Australian innovation have received a tremendous boost in tonight's Federal Budget.The current R&D Tax Incentive (RDTI) Bill, that sought to introduce $1.8 billion in cuts over 4 years from 2019/20 onwards, has been abandoned. This means that the current RDTI regime applies for the 2019/20 and the current financial years.In a truly exciting development, the…
For those lucky enough to have made it back to the cinema, the main offering has been Christopher Nolan's latest magnum opus, "Tenet". It's not a spoiler to say that there are several shots throughout the movie displaying time moving forwards and backwards on the same screen. And, we were eerily reminded of that idea during this exchange between Prime…
Spring is just around the corner, and even the Department of Industry, Science, Energy & Resources (the Department) has been doing some spring cleaning. The Department has just released its “refreshed” version of the principal guidance product for the R&D Tax Incentive program, namely the Guide to Interpretation. To view this refreshed Guide, please click here. The Department is seeking feedback on…
In February 2020, the Senate referred the provisions of the Treasury Laws Amendment (Research and Development Tax Incentive) Bill (the Bill) 2019 to the Economics Legislation Committee for inquiry and report by 30 April 2020. This was then extended to 7 August,and then to24 August, presumably due to the restrictions imposed by Covid 19. On Friday 21 August 2020, the Senate…
Followers of the MJA Update will be all too keenly aware of the uncertainties associated with the outstanding Bill that cuts the value of the R&D Tax Incentive (the Incentive). The Bill pares back value for the Refundable R&D Tax Offset and slashes support for the vast majority of Non-Refundable Offset claimants off the back of a questionable R&D intensity premium measure.…
The ATO has released Draft Taxation Determination TD 2020/D1, setting out how the 'at-risk rule' (section 355-405 of the Income Tax Assessment Act 1997) applies to JobKeeper payments received by a company conducting activities eligible for the R&D Tax Offset.In short, the ATO is of the view that eligible R&D activities subsidised entirely or in part by JobKeeper payments will not attract…
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