The RDTI: Just Like The Other Thing, Let’s All Be In This Together

December 23, 2021 Kris Gale

The unsurprising release of three ATO R&D Tax Incentive (RDTI) guidance products just three working days from Christmas means that eyebrows won’t be raised, nor eyes rolled. It just feels too much like business as usual for that to happen.
The specific releases are as follows:

• TR 2021/5: The final version of TR2021/D3 dealing with the Division 355 “at risk” rules
• TD 2021/9: The final version of TD2021/D1 dealing with the interaction of the “at risk” rules with JobKeeper payments
• LCR 2021/3: The final version of LCR 2021/D1, dealing with the interaction of the transitional temporary full expensing measures and depreciating assets used for eligible R&D activities. 

We will spare you the details until the New Year but, in relation to the “at risk” and JobKeeper rulings, there is little joy to report as both seek to curtail R&D tax benefits based on restrictive readings of the relevant legislation that were challenged by most of the stakeholders who submitted earlier this year and, yes, back in 2020. Suffice to say, it’s disappointing that the ATO seeks to deliver these outcomes that directly affect taxpayers’ businesses at the time of year when they are least likely to even register the impacts, let alone respond to them. It’s simply not a collegiate way to behave.

The MJA Update has been of the view that the new benefits regime that commenced on 1 July of this year offered a real chance for all parties to come together and ensure that full compliant claims are being accessed by the Australian innovation community. The hope was that the unwinding of the administrative ‘crackdown’ in 2019, along with the jettisoning of the value cuts in 2020, would see a new era of cooperation emerge going forward. To date, the teething troubles of the new Registration Portal and the timing of these new ATO rulings hasn’t exactly seen things off to a roaring start. But we remain committed to getting there. The interests of legitimate stakeholders are coincident, not disparate.

We look forward to seeing stakeholders putting the RDTI on to a positive and robust course in 2022, leaving its main troubles in the rear view mirror, along with the worst of the pesky pandemic. As the Federal Government’s recent “net zero by 2050” commitment so eloquently put it, the target has to be met, in part, by Australia developing new and improved technologies via the agency of R&D. This means that the Government’s flagship RDTI program simply has to be allowed to work in the way it has always been intended to. As New York rappers, De LA Soul, once put it, “Stakes Is High”!

Have A Relaxing And Enjoyable Festive Break
We all know what the year we’ve just experienced has brought us. The challenges have been replete and they will continue. That being said, we trust that everyone is able to enjoy a genuine break this Christmas season and that 2022 will be remembered for us all taking many steps in the right direction together.

And thank you to all that have worked with the MJA team this year in the many and various ways that we have come to know you. It is truly appreciated.

Should you wish to discuss this matter please do not hesitate to contact Kris Gale on 02 9810 7211 or email kris.gale@mjassociates.com.au