R&D Tax Incentive | Prepayment Loans | EMDG | MMF
Newsletter | April, 2020
Trying to navigate your business through the ongoing threat of the coronavirus whilst maintaining the security of your staff and clients will no doubt be a juggling act we will all have to manoeuvre for some time. As such, industry assistance from both Federal and State Governments has never been more crucial, but don’t just look at current cash flow assistance stemming from the economic response to the virus. Other business grants and tax incentives are also available and can make an enormous difference to your ongoing viability.
TCF Services is OPEN for business
Like so many businesses around the country, we at TCF Services are following the Government’s advice to self-isolate with all our staff working from home. We are fully operational with our consulting team available during normal office hours and beyond. We have taken all appropriate digital security measures to continue working through our usual channels and are well equipped to service our client’s needs through this crisis.
R&D Tax Incentive 18/19 Financial claims
The cut-off date for end June 2019 financial year claims is normally 10 months after the year end being the end of April 2020 but AusIndustry has now extended the deadline to end September 2020. If your business is on hold and your looking for ways to survive, the time is now to work with an R&D tax consultant to check your eligibility and prepare your current 18/19 and 19/20 claims.
R&D Tax Incentive 19/20 Financial claims
From 1st July, applications can be lodged under the R&D tax Incentive. If you incurred costs undertaking research and development activities please call us as you may be eligible to claim a cash reimbursement of up to 43.5% against eligible costs incurred. All R&D companies should consider fast-tracking the claim preparation and contemporaneous record keeping requirements to ensure compliant claims.
Conversely, if you are planning to undertake R&D in 20/21 we also encourage you to call us so we can assist you with keeping the appropriate records to allow you to claim benefits in the following year.
R&D Tax prepayment loans
In addition, if you need cash NOW, our sister company R&D Capital Partners is also able to prepay up to 80% of the expected cash refund expected from your clients 18/19 OR 19/20 R&D Tax claim. This applies to companies eligible for a refundable tax offset that are cashing out tax losses against R&D expenses claimed.
In response to the Covid-19 business impact on cash poor technology companies claiming the R&D Tax Incentive, TCF Services in partnership with R&D Capital Partners is offering reduced rates for a 6 month period only to provide:
- R&D Tax prepayment loans of up to 80% against expected 18/19 or 19/20 financial year R&D tax cash refunds and;
- R&D Tax claim services including the establishment of compliant record keeping practices.
- Free scoping of other grant opportunities
Speak with David Tonkin, Director of TCF Services and R&D Capital, for more information.
Export Market Development grants:
This program has been under-funded for many years resulting in a modulated grant being paid to recipients of less than 50% of what they were entitled to. As part of the additional support provided by the Federal Government an additional $49 million has been provided so that all 2019 claims are fully paid in June. Perhaps it is a good time to consider preparing documentation now to be ready to lodge an application from the 1st July to enable a faster payment turnaround.
Manufacturing Modernisation Fund:
A $50m Federal Government grant program which supports manufacturers to modernise, adopt new technologies, become more productive and create more jobs by co-funding capital investment and up-skilling your staff.
- $20m will be allocated for small grants ($50,000 to $100,000) to support technology and efficiency improvements. Co-funding is on a 50/50% basis.
- $30m will be allocated for larger grants ( $100,000 to $1m) to support transformative investments in technologies and processes. Successful claimants will be provided with grants equal to 25% of projects costs with the 75% balance funded by the claimant.
* Round 2 – Applications are expected to open in May with a end of June lodgement deadline.
– Don’t miss out on R&D Capital Partners limited time Prepayment rates –
- Scope your potential to claim various grant programs
- Assist with the preparation and lodgement of grant applications
- Review or provide a health check on your internally prepared grant applications
- Establish record-keeping practices as required under various grant programs
- Provide prepayment loans against future cash refunds under the R&D Tax Incentive
- Keeping industry informed on all new Government policy and grant initiatives
Don’t hesitate to give us a call.