Streamline your R&D application process with our expert assistance
Our expertise helps companies navigate the system efficiently and avoid pitfalls.
A successful grant alleviates your financial pressure, allowing you to pursue your goals with less reliance on personal resources.
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GRANTS & TENDERS WON
What is The Research and Development Tax Incentive?
The R&D Tax Incentive program encourages Australian companies to invest in research and development activities by offering a tax offset. The government hopes to stimulate economic growth and create jobs.
By participating in this program, eligible companies can reduce their taxable income and lower their tax bill. The R&D tax incentive is like a government ‘thank you’ for companies doing R&D. It reduces the amount of tax the company has to pay, like a discount.
R&D Tax Incentive: Get Rewarded for Innovation
Problem:
Your business wants to develop new products or improve existing ones (R&D). Traditional R&D can be expensive, making it risky for innovation.
Solution:
Reduce your R&D costs! The R&D Tax Incentive lets you claim a tax break for qualified R&D activities.
Benefits:
- Save money: Lower your tax bill, freeing up resources for innovation.
- Be more competitive: Develop new offerings and stay ahead of the curve.
- Level the playing field: Smaller businesses get a bigger financial boost for R&D.
Simplify Your R&D Tax Claim:
No Competition, Just Rewards
Qualify:
Check if your R&D activities meet the guidelines.We can help
Apply:
Submit your application with proof of qualifying R&D spending.
Get rewarded:
Receive a tax break that directly reduces your tax bill.
No competition! If you qualify, the tax break is yours for the taking (eligibility-based, not competitive).
This program helps you:
- Invest in innovation: Take risks on new ideas without worrying about high R&D costs.
- Grow your business: Develop innovative products and services that attract customers.
- Compete effectively: Stay ahead of the game and outpace your competition.
Is Your R&D Project Eligible?
What is The Tax Incentive rate for my company?
Discover how much you can save with R&D tax incentive rates.
Claim the Maximum R&D Tax Offset You're Entitled To
There are two main parts to it:- Refundable Tax Offset (for smaller companies): If your annual turnover is less than $20 million, you can claim a refundable tax offset. This means you'll receive a refund of the tax you've paid, plus an additional 18.5% of your eligible R&D expenditure.
- Non-Refundable Tax Offset (for larger companies): There's a non-refundable tax offset. This means you can reduce the tax you owe by a certain percentage, based on how much you spend on R&D compared to your total spending.
The exact rate depends on how much a company spends on R&D compared to their total spending.
But for smaller companies, it's their usual tax rate plus 8.5% for the first 2% of R&D spending, and then plus 16.5% for anything above that.
Smaller companies:
Refundable tax offset, up to 18.5% extra.
Larger companies:
Non-refundable tax offset, reduces tax payable.
Is Your Business Eligible?
Application process
How we can help you
Here's how we can help you 'level up' by using our grant services:
- Increased Funding Opportunities:
- Wider Reach:
We can help you identify a wider range of grants beyond your initial search, increasing your chances of finding a perfect fit for your needs. - Expertise in Matching:
We have the expertise to match your specific project or goals with grants that align strategically and offer the best potential funding. - Staying Updated:
We stay updated on new and relevant grants while you focus on your core activities.
- Wider Reach:
- Streamlined Application Process:
- Guidance and Support:
We provide guidance on the application process, including crafting compelling proposals, structuring budgets properly, and meeting eligibility criteria. - Reduced Time Commitment:
We handle the time-consuming tasks, freeing you to focus on your core activities. - Increased Success Rates:
Our expertise can increase your chances of a successful application by ensuring a well-prepared and competitive submission.
- Guidance and Support:
- Enhanced Knowledge and Expertise:
- Learning and Development:
You gain valuable knowledge and experience through our guidance and resources, empowering you to navigate the grant landscape independently in the future. - Staying Informed:
We keep you updated about relevant trends, regulations, and opportunities in the grant world.
- Learning and Development:
- Improved Reputation and Credibility:
- Association with Grant Funding:
Securing a grant demonstrates credibility and commitment to your project, enhancing your reputation with potential partners, donors, and stakeholders. - Network Building:
We can connect you with other grantseekers and organizations, expanding your network and fostering collaboration opportunities.
- Association with Grant Funding:
resources
Increased Resources:
Grants provide additional resources to fuel your project's advancement, accelerating progress and potential impact.
financial
Reduced Financial Burden:
Funding alleviates financial pressure, allowing you to pursue your goals with less reliance on personal resources.
innovation
Enhanced Innovation:
Grants can enable you to explore new ideas, scale your existing project, and ultimately create a greater impact in your field.
By leveraging our expertise, you can achieve more with your projects and make a bigger difference!
The best part? We only charge success fees. Get in touch.
Slightly curious?
How does R&D Tax Incentive work?
The R&D Tax Incentive program encourages Australian companies to invest in research and development activities by offering a tax offset. By participating in this program, eligible companies can reduce their taxable income and lower their tax bill.
The R&D tax incentive is like a government "thank you" for companies doing R&D. It reduces the amount of tax the company has to pay, like a discount.
Here's a simple explanation of how it works:
Who Can Benefit:
Companies that spend money on research and development activities can get a tax offset.
How to Apply:
Companies need to check if their R&D activities qualify.
What You Need:
Keep good records of your R&D spending and make sure you follow the rules to claim the tax benefit.
Streamline Your R&D Tax Claim:
From Eligibility to Offset
Receive tax offset!
Unlock R&D Tax Savings: With our free Guide
Boost your bottom line with this government incentive for innovation.
Learn if your company qualifies and how to claim valuable tax benefits.
This guide provides a comprehensive overview for companies looking to benefit from the R&D Tax Incentive.
It includes: R&D Tax Incentive, Eligibility Criteria, Claimable Expenses and the Application Process.
Who Qualifies for R&D Tax Offsets?:
Not all research counts.
Find out if your R&D activities meet the criteria for this attractive tax break.
Claiming Your R&D Tax Benefit:
Easy Steps
Don't miss out! This guide simplifies the process of claiming your R&D tax offset, maximizing your return on innovation.
Record Keeping for R&D Tax Claims:
Stay Compliant
Ensure a smooth claim process. Learn best practices for documenting your R&D spending to meet government requirements.
Download our free Quickstart Guide with all the key considerations for the R&D Tax Incentive, or book a free consultation with us to see how your business can benefit.
Understanding what counts as R&D and do I qualify?
When we talk about R&D, we need to know the difference between a whole R&D project and the smaller tasks within it, which we call R&D activities.
What counts as "eligible" activities are outlined in specific laws and fall into two categories:
1 Core R&D Activities:
Think of these as the heart of your innovation project. They directly generate new knowledge or create new/improved products, processes, or services.
Examples include:
- Conducting experiments based on a hypothesis.
- Building and testing prototypes.
- Developing new software algorithms.
2 Supporting R&D Activities:
These are activities that are essential for your core R&D activities to happen successfully. Your supporting R&D activities must directly relate to your core R&D activities. They don't directly create new knowledge but they keep the research process running smoothly.
Examples include:
- Gathering and analysing data.
- Setting up laboratories or testing facilities.
- Managing the logistics of the research project.
Unlocking Genuine Innovation:
What You Need to Know
Why it Matters:
The government wants to encourage genuine innovation. The distinction between core and supporting activities helps ensure the tax incentive money is truly invested in making new discoveries and advancements.
The Rulebook:
The Income Tax Assessment Act of 1997 is the official law that sets the boundaries for the R&D tax incentive. In it, it clearly defines what kinds of activities are considered eligible for support.
Need to know if your R&D qualifies?:
There are some activities that don't count, like internal software projects or social science research. We can help you check quickly so you can focus on getting your R&D project off the ground!
Are R&D Grant Applications leaving you Lost in Translation?
Are you struggling to understand how your innovative work aligns with the government's definition of qualifying R&D activities?
This "definition gap" can be frustrating, leading to:
Wasted Time and Effort
You spend valuable resources deciphering complex guidelines, taking time away from actual innovation.
Application Uncertainty
Doubting your eligibility discourages applications, potentially costing you significant funding opportunities.
Application Rejections
Incomplete or poorly-written applications risk getting rejected, delaying your progress and leaving you with unfulfilled funding needs.
No More Deciphering, Let Us Draft Your Winning Application
Maximize Your Funding Chances
We leverage our deep understanding of R&D grant programs to strategically position your project for success. This comprehensive knowledge allows us to navigate complexities and maximise your chances of securing the funding your research deserves.
Expert-Crafted Applications
Our team of specialists takes the reins, aligning your research with funding criteria and crafting compelling narratives. We handle everything from initial research alignment to clear and concise writing, ensuring your application showcases your project's true potential.
Skip Paperwork, Focus on Innovation
Our team steers the process, aligning research with criteria and crafting compelling narratives. From initial fit assessment to clear writing, we showcase your project's true potential, securing the funding your groundbreaking innovation deserves.
We're More Than Just Consultants
We're Your Funding Partner.
Our team of grant application specialists acts as an extension of yours, eliminating the risk of missed opportunities. We handle the entire application process, from initial research alignment to crafting compelling stories that showcase your project's perfect fit for funding. This allows you to focus on what you do best - pushing the boundaries of innovation in your field.
Don't let frustration and paperwork stall your progress. Partner with us today and secure the funding your research deserves!
Everything you need to know about the R&D tax incentive
What is an example of an ATO R&D tax credit?
In Australia, the R&D tax incentive provides a refundable tax offset of up to 43.5% of eligible expenditure on R&D activities, up to a maximum of $100 million of expenditure per year.
This means that companies can receive a cash refund of up to 43.5% of their eligible R&D expenditure, even if they don't owe tax. This allows loss-making small companies investing heavily in R&D to receive the benefit of the R&D tax incentive as a cash payment, rather than just carrying forward deductions.
Example 1 :
A company develops new software to improve customer experience.
Tax offset:
Example 2 :
Manufacturer develops a new product with improved features.
Tax offset:
Example 3 :
Biotech company conducts research on a new medical treatment.
Tax offset:
What about Artificial Intelligence Research and Development?
The Australian R&D landscape is changing, especially for Artificial Intelligence (AI) and Machine Learning (ML) projects. The Australian Government's recent Mid-Year Economic and Fiscal Outlook (MYEFO) reveals a significant increase in R&D Tax Incentive (RDTI) costs, largely driven by advancements in AI and machine learning. As the government considers reforms to ensure the RDTI remains targeted at truly innovative work, it's essential to navigate the complex landscape of R&D incentives.
If your project involves AI and/or ML, our team at Sprout Scientific can help draft a robust research and development proposal that meets the evolving requirements of the RDTI program. Get Expert Help with Your AI/ML R&D Proposal:
- Navigate the Evolving R&D Tax Landscape: Our experts understand the latest government guidelines and can ensure your proposal aligns with the new focus on groundbreaking AI research.
- Differentiate Your Project: We'll help you clearly demonstrate the technical uncertainties and innovative aspects of your AI/ML project, separating it from routine software development.
- Expert Guidance: The knowledge to assess if your project truly requires AI and effectively explain why existing techniques wouldn't suffice.
- Increase Claim Success: A well-drafted proposal minimises the risk of audits or unfavorable reviews, maximising your chance of a successful R&D AI/ML Tax Incentive claim.