What is the R&D tax incentive?
The R&D tax incentive is a federal government scheme designed to incentivise innovation. 

It provides support targeted primarily at small and medium businesses in order to help them get from the idea stage right through to successful commercialisation and running a profitable, sustainable business.

Read more about the benefits of claiming the R&D tax incentive.

What is the benefit to claiming?

By successfully claiming the R&D tax incentive, you can get a refund of up to 43.5% of what you spend. So, if you spend $100k on R&D, you may be entitled to $43.5k in cash back.

Read more about the benefits of claiming the R&D tax incentive.

Do I have the necessary documentation to claim?
The documentation required is actually not as daunting as it may sound. In fact, if you’re managing your business using project management tools, you’re likely to be documenting everything you need already.

You basically need:

  • Technical documentation to capture your experiments including results (photos and video are great)
  • Expenditure documentation to show how you’ve calculated R&D spend (timesheets and invoices work well here)
How will Grants for Growth help me?
We can:

  • Review your business for the year
  • Identify and scope out with you which activities may qualify as R&D
  • Review your internal documentation to substantiate the claim well
  • Prepare the necessary R&D project documentation for claiming
  • Calculate any eligible R&D expenditure while ensuring we don’t miss out on a dollar and maximise your claim for you
  • Prepare and lodge the R&D registration form
  • Prepare the R&D tax schedule that will form part of your tax return lodgement at year end
  • Provide a claim summary report at the end of every claim so that you understand what we’ve done and why and you can rest knowing that your risk has been mitigated as much as possible
  • Respond to requests for information or audits from either the ATO or AusIndustry
Am I eligible for the R&D tax incentive?
Essentially, to be eligible, you need to have conducted at least one Core R&D activity which ticks three boxes:

  1. Is experimental in nature including a technical hypothesis and a series of systematic steps to test that hypothesis which then reaches logical results and conclusions
  2. Generates new knowledge which can be in the form of new products, services, systems or processes that are new or improved over what currently exists in the market
  3. Involves technical risk i.e. a competent professional in the relevant field can not be 100% sure that your proposed solution is going to work without first testing it
How much do I need to spend in order to be eligible?
You have to spend at least $20k in a given financial year to be able to claim.
How likely is it that my R&D grant will be audited?
AusIndustry say they like to audit around 15% of claimants each year, however, there are certain risk factors that will influence their decision as to who to audit and who not to bother with.

We can help you mitigate your risk factors to avoid an audit as much as possible, however, in the event that you do get selected, we’re not going anywhere.

We will be right by your side the whole way assisting you to defend your claim and advising you on the best course of action to achieve the best result.

Find out more about the R&D grant audit process.

What are the fees involved in claiming with you?
Clients tend to prefer paying for their R&D grant claims in the form of a % of the overall claim.

That way, they have peace of mind that we have some skin in the game and will look to get you the best outcome, because that also gets us the best outcome.

So, typically our fee basis is a % of the claim, however, we’re happy to chat with you about your specific circumstances and negotiate a different arrangement if that’s something you’d prefer.

Can I claim R&D expenditure for non-experimental activities?
Yes, these are called Supporting R&D activities and expenditure associated with them may be claimed for provided certain requirements are met.
Who can claim R&D?
Only Australian companies can claim R&D, so trusts, partnerships and sole traders are out.

However, if this is you, please have a chat with us and we can discuss options as to how we may be able to assist structuring things correctly in the future.

What kinds of costs can I claim R&D for?
Eligible expenditure may include items such as the following:

  • Salary and wages
  • Contractor costs
  • Overheads, such as rent, lighting, phone, internet
  • Depreciation on specific assets used in R&D activities
  • Trial costs
  • Materials
What is R&D finance?
R&D finance is a loan facility whereby you can access your expected R&D refund throughout the year rather than waiting until the end of the year when you lodge your tax return.
What is the interest rate that I’ll pay for R&D finance?
R&D finance facilities can vary depending on circumstances between around 14% and 18%.
How soon can I receive my money through an R&D finance arrangement?
You’ll typically receive the funds within 72 hours of completing the loan documentation.
Can I access capital multiple times a year through R&D finance?
Absolutely! As many times as your business needs dictate, you can access further finance.
Is there anything else I need to know about R&D before I get started?
I think that’s about everything!

Please get in touch and we can chat further! 

Client Testimonial

“Claiming R&D through Grants for Growth has been a highly successful endeavour for us! They have a no BS, no waffle approach, they just deal in facts, which is exactly the way I like it. I would highly recommend other businesses that may be doing R&D to speak to Grants for Growth as they make it simple and I couldn’t do it without them. Also, since dealing with Grants for Growth, we have a multiple year, zero failure record with them, which I’m very thankful for!”

John Hammerton
Founder – Generation Green