Key Dates & Reminders – Don’t Miss Out!
Applications to register 21/22 financial year R&D activities open on the 1st July
The increased rates of return are:
- Annual revenue <$20m – Company Tax Rate: 25% – Refundable Tax Benefit: 43.5% (if matched by tax losses) or 18.5% (when trading in profit)
- Annual revenue $20m-$50m – Company Tax Rate: 25% – Non-Refundable Tax Benefit/2 tier benefit: 8.5% on eligible R&D expenditure which accounts for up to 2% of total company expenses and an additional 16.5% on eligible R&D expenditure exceeding the 2% baseline.
- Annual revenue >$50m – Company Tax Rate: 30% – Non-Refundable Tax Benefit/2 tier benefit: 8.5% on eligible R&D expenditure up to 2% of total company expenses and an additional 16.5% on eligible R&D expenditure exceeding the 2% baseline.
End of Financial year R&D Tax Housekeeping tips:
- Pay your associated party R&D fees by 30th June each year – if an entity or contractor is associated in any way with the R&D entity ( i.e. shareholder, director, staff, or associated entity) their fees for R&D services must be paid for by the 30th June in the year of the R&D activity otherwise the ATO will not allow the claimant to drawdown the tax benefit when the tax return is lodged, instead, the unpaid associated party expense must be carried forward in the tax return and only realised when the expense is paid.
- Pay your R&D staff superannuation payments by the 30th June each year – to be eligible to claim the superannuation costs relating to R&D staff requires the superannuation to be paid on or before the end of the financial year. Similarly, late compulsory superannuation payments cannot be claimed in the financial year they apply but can be claimed in the following year when paid.
Export businesses note the following deadlines:
Round 2 Applications open 6th July,2022
Austrade have announced the opening of applications under Round 2 for a limited 6 week window ending the 17th of August, 2022.
Under the new EMDG program, eligible SMEs under $20m in annual revenue are eligible to apply and receive forward grant agreements commencing 1/7/22. The grant amounts provided in the 1st Round provide an indication of what may be offered to Round 2 applicants assuming the demand and funding remains stable:
First Time Exporter
Tier 1 – up to $15,000 per financial year – 2 year grant agreements
Existing Exporter / Existing Product(s)
Tier 2 – up to $24,600 per financial year – 3 year grant agreements
Existing export businesses undertaking a major strategic shift – new products/ new markets
Tier 3 – up to $36,600 per financial year – 3 year grant agreements
Eligible marketing categories are:
- Overseas Representatives
Costs associated with engaging an overseas representative to conduct market research and promotional activities
- Marketing Consultant/Agent
Costs associated with engaging a consultant to undertake market research or marketing on a fee basis
- Short trips to a foreign country
Expenses of up to 21 days’ continuous travel between Australia and a foreign country are eligible. Airfares, accommodation and meals
- Short trips within Australia
Expenses of up to 21 days’ continuous travel within Australia are eligible if they relate to promoting to potential foreign buyers. Airfares, accommodation and meals
- Soliciting for business in a foreign country
Costs related to soliciting for business in a foreign country for the eligible product e.g tradeshows, demo’s. in store promotions
- Free Samples
Sample(s) production and freight costs
- Promotional literature and Advertising
Costs of producing marketing material such as flyers and brochures, online and print advertising, photography, digital artwork, virtual events, social media marketing
- Overseas Buyers
Costs of bringing an overseas buyer into Australia for marketing purposes. Airfares, accommodation and meals
- Overseas Patents and Trademarks
The cost of international patent and trademark applications/registration/renewals
If you are promoting your products in foreign markets, give us a call.
*special note, Russia is now excluded from eligible countries.
Applications close 4:00 p.m. on the 17th August, 2022
If you are an exporting business, or if you were exporting goods or services before the impacts of COVID-19, bushfires or drought, consider applying. Export businesses may be eligible for an export assistance grant of up to $10,000.
This grant helps eligible export businesses in NSW access global markets. Funds can be used for:
- marketing materials
- website internationalisation
- pivoting to online delivery (for example, converting face-to-face training content to online content for international audiences)
- e-commerce development
- market research
- international tradeshow and trade missions
- inbound business support
- costs to support compliance/localisation of products for export
- costs to protect business in international markets.
This grant will be provided as reimbursement of 50% of eligible expenses, up to a maximum of $10,000 per eligible business, for expenses already paid since 1 January 2020.
How to Apply
You can submit either one application up to the maximum of $10,000 or multiple applications of a minimum of $2,000 per each application, totaling a maximum of $10,000.
Applications close at 11:59pm on 30 June 2022 or when the allocated funding is exhausted.
To be eligible for this grant, you must:
- be based in NSW
- be currently exporting, or were exporting prior to the impacts of COVID-19, bushfires or drought
- employ a minimum of 3 full-time equivalent workers at the time of application
- own the goods/services to be exported, or be able to provide documented evidence that you are the agreed export supplier
- produce the goods/services to be exported in Australia, or be able to provide documented evidence that the business provides substantial value to NSW
- be an exporting business with an annual turnover of:
- up to $100 million, or
- greater than $100 million that can demonstrate export turnover has declined by more than 30% in the 2019–20 financial year and have an intention to re-establish your export business in your established markets and/or diversify into new markets.
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TCF Services & Ryan have a strong history of assisting export businesses & delivering the R&D Tax Incentive
Give us a call to get started
- 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.