ATO cracking down on R&D

Following the recent abuse of the program by the building and construction industry, the Australian Taxation Office is cracking down on the exploitation of research and development tax incentives and will be addressing the misuse of the incentive.

R&D tax incentives were designed to support the creation of new knowledge and are thought of by many in the start up community to be the best support for early stage companies.

In a recent Australian Financial Review article the ATO deputy commissioner Michael Cranston said “We have seen an increase in claims for ordinary business activity expenses, or for large parts of projects that do not correspond to the scale or scope of experimental activities.”

The spotlight will remain on this incentive as startups clash with big business and the ATO on what is the correct way forward for R&D.

This highlights the importance of getting the correct information on what you can claim as R&D expenses so you don’t get caught out. Contact us today and we can help you navigate the R&D tax incentive.

ATO – R& D Tax Incentive