R&D tax incentives for Australian businesses
- Refunds up to 43.5%
- Major funding source
- Tiered services pricing
- Early access through loans
- No win, no fee
With refunds of up to 43.5% of development costs, the R&D tax incentive is the major source of funding for startups and other businesses. And yet, many early startups (in particular) aren’t aware of it. And no you don’t need to be a tech startups. Manufacturers, engineers and medical companies are also big users of the R&D tax incentive.
If you do know about it, maybe you haven’t found the right R&D service provider for the stage you’re at or maybe you’re wondering how you can wait until tax time to get the cash.
Whatever the case, we’ve got you covered. And we also work with lenders who’ll consider loaning you the money early. Phew.
PwC Nifty Pricing – for claims above $200k R&D spend
Catalyst Solutions pricing – for claims up to $200k R&D spend
If your R&D spend is smaller or if you’re just starting out, you might want to save money by doing more of the R&D application work yourself. That’s why we’ve partnered with independent R&D firm, Catalyst Solutions, for a more guided approach.
More on R&D and forward funding
Preparing your R&D claim
To make an R&D claim, you need to be able to show that:
- You are undertaking innovative, unique, non-trivial software or hardware development
- You have undertaken a series of experiments with unknown outcomes
R&D is an extension of Australia’s tax system, so any claims are subject to potential audits.
If you’re one of our Launch, Go or Grow bookkeeping clients, you will be in a good position for these because you’ll be using the Receipt Bank App/email to submit invoices, receipts and expenses so they’ll all be digitally ready to go for auditors.
Want the official view? Visit AusIndustry’s R&D tax incentive website.
If you’re wondering how you’re going to keep building your product, keep developing your ideas and just keep surviving until tax time to get your R&D refund, you need to know about R&D financing.
Likewise, if you’re considering raising funds from outside investment. With R&D financing (also known as R&D forward funding), you mightn’t need to seek outside investment, thereby keeping more equity in your startup for longer.
We work with several lenders who specialise in providing loans against expected R&D tax refunds. You don’t need to have made a successful R&D claim in the past to be eligible, but if you have it will make the process quicker and easier. Either way, it’s not guaranteed and we’ll let you know if it’s worth trying or not. A forward cashflow – which we can do for you – is a must when going for this type of financing.
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