The guidance material released by AusIndustry utilises 14 case studies across the three selected industries to demonstrate the application and specific requirements of the R&D Tax Incentive.
Areas covered include:
- core R&D activities which address outcomes that cannot be known or determined in advance based on current knowledge. This also impacts R&D in scale-up activities where small-scale tests may predict the outcome of large-scale tests.
- supporting R&D activities where a direct, close and relatively immediate relationship with a core R&D activity must be demonstrated
- the importance of describing the scientific method involving hypotheses, experiments, observation and evaluation in a commercial R&D context
- the need for contemporaneous record keeping of activity detail and expenditure incurred
- overseas and Advance Findings which confer certainty to R&D claimants by providing a binding determination on R&D eligibility issued by Innovation Australia
- the issue of R&D collaboration between entities and the “on own behalf” requirement to clearly define for whose benefit the R&D activities are conducted
- using a Research Service Provider (RSP) to access specialist R&D expertise.
AusIndustry refers to and builds on previously released guidance material that dealt with compliance readiness, specifically a five-principle approach to developing and ensuring appropriate documentation and substantiation systems for any R&D tax claim.