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R&D Tax Incentive Claimants: What will soon become public information

R&D expenditure claimed by an R&D entity will now be published two years after the end of each financial year. The first publication is proposed in September 2024 for the income year ending 30 June 2022.

The information that will be published will include:

  • The name of the R&D entity
  • Australian business number (ABN) or Australian company number (ACN)
  • Notional deductions claimed (less any feedstock adjustments).

The move aims to enhance transparency and accountability in R&D tax claims. For more information on the disclosure requirements, refer to the details provided by the ATO here: Our new requirement to publish R&D expenditure information | Australian Taxation Office (ato.gov.au)

In addition, AusIndustry and the Australian Taxation Office (ATO) have announced joint reviews of Research and Development (R&D) tax claims for the year of 2022. This is the first for the R&D tax incentive program. Companies are being notified now of these reviews, and they are scheduled to be completed by 30 June 2024. The reviews are subject to random selection and may involve them conducting an internal review, in which no information is requested. Or the review may progress to a formal audit. In a formal audit, the ATO and AusIndustry may request information about the experiments (including progress reports, meeting notes or test data) and the expenditure (invoices, payments records) associated with those payments.

Prepare for upcoming R&D tax changes! With the disclosure of expenditure details and joint reviews by AusIndustry and the ATO, ensure your claims meet standards. Secure your R&D tax position today, for tailored assistance reach out to our accounting & business advisory team at enquiry@primefinancial.com.au.

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