“Innovative Business” Not Reserved Just For Biotech – Register To Claim Cash Back By 30 April

Many businesses are missing an opportunity for cash back entitlements on their R&D spending, because either they are unaware of the tax offset under the R&D tax incentive scheme, or they are misinformed, believing that “innovation” is a term reserved for scientific breakthroughs and the biotechnology industry.

Businesses are selling themselves short by not considering whether they qualify to register their innovation for a tax claim.

Example – Agribusiness

Australia’s Agribusiness sector is a prime example. Farmers continue to face extensive challenges due to unpredictable weather conditions, global supply chain disturbances, employment and retention challenges and the increasing importance of biosecurity.

Primary producers are driven to invest in technology-driven farming methods to remain competitive in a market under pressure, whilst being required to reduce emissions in line with ESG compliance obligations.

Further along the supply chain, product lines must evolve in response to the changing consumer preferences across the food and beverage sector.

The above presents an opportunity for companies in the Agribusiness sector to conduct product and process innovation – on which they may be able to receive a tax benefit.

Those who understand agribusiness are aware that farmers are time-poor and typically juggle multiple demands. These businesses are perhaps most unlikely to have the excess capacity to consider the range of tax benefits and government grants that they may be entitled to.

Time is of the essence for FY25

To make a claim for R&D activities undertaken in the year ended 30 June 2024 (23/24FY) they have until 30 April 2025 to register, noting that companies must register their R&D claim within 10 months after the financial year end.

Fortunately, there are specialists who can assess your eligibility quickly, and drive the process on your behalf.

Is your business eligible for cash back?

To register for and claim the R&D Tax Incentive, consider these key eligibility requirements:

1. Your business must be an eligible R&D entity.
2. Your business must have conducted eligible R&D activities.
3. Expenditure on eligible activities must be at least $20,000 and can include:
   1. Wages and salaries, materials, contractors and other costs.
   2. The decline in value of depreciating assets used in R&D activities.

How can the Bentleys R&D service line assist your business?

Bentleys will assess your eligibility and manage your application for registration of R&D activities, working with you to collect information, distil it into a comprehensive compliant registration, and develop the company tax schedule before the 30 April deadline.

Talk to your local Bentleys R&D Tax Incentives team today if you are interested in exploring your cash back entitlements for this financial year.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.