The April 30 deadline for applying for the R&D Tax Incentive is just over a month away. Are you eligible to claim it?
The R&D Tax Incentive is a great way for businesses to get a quick cash injection of up to 45 per cent of eligible expenses from the previous financial year. The April 30 deadline for applying for the R&D Tax Incentive is a mere 27 business days away, so if you haven’t done so already, now is the time to check if you’re eligible – and to submit a claim if you are.
The Australian government helps businesses fund the improvement of products, processes, or services through the R&D Tax Incentive. This provides a safety buffer for small businesses taking a financial risk in trying to create something new or improve something existing.
To support SME business owners to access the R&D Tax Incentive, PwC has set up Nifty R&D, which simplifies applying for the incentive.
PwC believes that while over 7,000 small businesses currently apply for the program, over 20,000 small businesses are eligible for the R&D Tax Incentive. Given this, there is a good chance that your business may be eligible for the R&D Tax Incentive, and time is running out for you to take advantage of this opportunity.
A cash injection could be easier than you thought
To be eligible for the R&D Tax Incentive, businesses have to meet a few key requirements. These include:
- Being incorporated in Australia as a for profit company;
- Having spent more than $20,000 on eligible expenses in the last financial year; and
- Having improved an existing or building a new product, process or service.
It’s generally accepted that your business is doing research and development if you’re experimenting with different solutions to solve a previously unsolved problem. Examples of R&D vary from industry to industry, but may include, amongst others, a tech start-up building a new web or mobile application; a fashion designer designing a new material; or a farmer improving her automated irrigation system.
If you want to find out more about the R&D Tax Incentive, visit http://niftyforms.com/knowledgebase for more information. Or if you want to complete a claim online, you can do so now in about 30 minutes at http://niftyforms.com.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. PwC Australia helps organisations and individuals create the value they’re looking for.
Like My Business on Facebook now to get involved in the SME community discussion.
Follow @mybusinessau on Twitter for breaking stories throughout the day.
Learn more about the SME Association of Australia.
Are you aspirational? Find out about our stablemate, Aspire magazine.