Published 10-11-2020
| Article appears in November 2020 Issue

New guidance to support investment in research and development

10-11-2020

The Morrison government has strengthened its commitment to supporting companies to invest in research and development, through refreshed R&D Tax Incentive guidance.

The guidance follows the government’s investment of a further $2 billion into the incentive, which provides a tax offset to support Australian companies to undertake additional research and development activities.

The refreshed Guide to Interpretation offers straightforward and accessible advice for companies accessing the R&D Tax Incentive, making it easier to find the information they need.

Minister for Industry, Science and Technology Karen Andrews said the guide was just one of the ways the government was supporting businesses. 

“We’re focussed on getting the economic conditions right so Australian businesses can thrive, which is crucial to our recovery from the COVID-19 recession,” Ms Andrews said.

“By giving greater clarity to the scope of eligible activities under the R&DTI legislation, we’re supporting more Australian companies to self-assess their R&D activities against the criteria and offset some of the associated costs.

“Alongside reforms announced in the recent Budget, providing clearer guidance material helps give companies the confidence and certainty to invest in the kinds of R&D that boosts our economy and creates highly skilled jobs right across Australia.

“We know that companies that conduct R&D are often more successful and contribute to economic growth at a higher rate.”
 
The guide, refreshed in consultation with business and tax agents, features plain English, less duplication, and helpful diagrams and examples, together with content aligning with recent Federal Court and Administrative Appeals Tribunal decisions. 

Companies are encouraged to use this resource and the range of helpful guidance available at business.gov.au to self-assess the eligibility of their R&D activities.

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