ACCOUNTING SUPPORT
R&D and EMDG Updates
R&D Tax Incentive
R&D tax incentive applications for the previous tax year ended 30 June 2020 can now be lodged with AusIndustry. Note: The government recently announced that R&D salaries paid the under Jobkeeper programme cannot be claimed for R&D tax incentive.
There is also still an ability to lodge R&D tax incentive applications for the previous tax year ended 30 June 2019 due to a COVID-19 extension. The extended lodgement date is 30 September 2020.
Getting organised early and accessing the government’s 43.5% R&D tax incentive cash rebate could provide a vital form of funding to assist your business get past the current COVID-19 situation.
Prime can also provide introductions to R&D financiers that may lend up to 80% of your expected R&D rebate from the 2019 or 2020 tax years. There is also an opportunity to lend against your R&D rebate that is being accrued for the current year ended 2021.
Note: Proposed legislation has been re-introduced into Parliament to reduce the current 43.5% R&D refundable tax offset to 41%. This legislation may passed to apply retrospectively for expenditure incurred during the tax year ended 30 June 2020. We will monitor progress of the legislation and update accordingly.
Export Market Development Grant (EMDG)
EMDG applications for the previous financial year ended 30 June 2020 can be now lodged with Austrade.
This grant provides exporters with an annual reimbursement of up to $150k – based on 50% of their eligible promotional expenses. There are several expense categories including online advertising, appointment of overseas reps and securing overseas patents and trademarks.
As such there is still an ability to incur eligible expenditure without leaving Australia.
Austrade’s recently announced COVID-19 stimulus measure for the EMDG include:
– Removal of the requirement to generate export income from the businesses 3rd claim onwards.
– Increase in the first tranche payment to $100,000 (previously $40,000).
Note: The above measures are only planned to apply for this claim year.
For any enquiries or support:
Melbourne team
Brendan Brown Simone Quin
Brisbane team
John Driscoll Sean Fincham
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