News

News on Government policies and support for innovation
CQHC v Commissioner of Taxation [2024] AATA 409

CQHC v Commissioner of Taxation [2024] AATA 409

This is a R&D sidebar note that has a low risk but high impact.  CQHC, a company conducting poultry farming operations, claimed R&D activities over several years including 2013 in relation to incubation and hatchery processes, water quality, shed cleaning, and...

Stocktake on Start-up funding 2023

Stocktake on Start-up funding 2023

Folklore Ventures and Cut Through Venture published the State of Australian Start-up Funding.  Every start-up seeking investment already knows that it has been as difficult as ever to attract funding.  Australia's capital markets are shallow not deep and largely...

Lakes Oil NL v IISA 2023

Lakes Oil NL v IISA 2023

This case focused among other issues on the need to articulate a hypothesis to substantiate R&D activity to satisfy the definition of R&D and claim the benefits of the R&D Tax Incentive (RDTI). In this case, Lakes Oil failed to persuade the AAT that the...

Industry Growth Program Consultation

Industry Growth Program Consultation

The Department of Industry, Science and Resources (DISR) has been seeking responses to its Consultation Paper for its new flagship Industry Growth Program (IGP) during July 2023. The IGP replaces the Accelerating Commercialisation (AC) grant program.  Readers who have...

R&D: AVT [2022] AATA 2319

R&D: AVT [2022] AATA 2319

Absolute Vision Technologies Pty Limited (AVT) developed a real-time freight and manufacturing scheduling system based on work undertaken by its founder as part of his PhD.  AVT identified the project objective that underpinned its 'experimental' activities as to...

R&D: PKWK Pty Limited [2021] AATA 706

R&D: PKWK Pty Limited [2021] AATA 706

The R&D claimant won this case comprehensively in a case where AusIndustry, acting for Innovation and Science Australia, contested every aspect of the definition of R&D in s.355 of the Income Tax Assessment Act . The facts are not recounted except to state...

R&D: H2O Exchange Pty Ltd [2021] FCA 11

R&D: H2O Exchange Pty Ltd [2021] FCA 11

This is an appeal from the decision of the Administrative Appeals Tribunal in H2O Exchange Pty Ltd and Innovation and Science Australia [2019] AATA 4195. H2O Exchange (H2O) was developing an online water exchange that would allow the sale and purchase of water rights...

Is Victoria the gold standard Grant Program?

Is Victoria the gold standard Grant Program?

In November 2020, the Victorian government announced a10yr $2Bn Breakthrough Fund to bring new ideas to market and continue to reshape a modern 'maker' economy driven by science and technology.  Whilst this investment is really only $200M pa, a small down payment...

Government reintroduces R&D intensity legislation

Government reintroduces R&D intensity legislation

Late last week the Morrison Government reintroduced the so-called 'intensity test' changes to the R&D tax incentive announced in the 2018 Federal Budget.  The 'intensity test' introduces a sliding R&D tax benefit premium tied to the level of R&D spend as a...

R&D: Moreton Resources Limited [2019] FCA 120

R&D: Moreton Resources Limited [2019] FCA 120

AAT decisions relating to R&D Tax Incentive applications often turn on the failings of the applicant’s research processes and supporting documentation.  Sometimes they involve questions of law that offer some precedent value for taxpayers and the IR&D Board...

Budget 2020 – funding science

Budget 2020 – funding science

The main benefit of political stability, and the portfolio stability that comes from it, is continuity of policy and program funding.  Tweaks to program and/or funding changes can be managed if there is a clear strategic vision over multiple electoral and Budget...

A brief history of the R&D tax incentive

A brief history of the R&D tax incentive

With the impending election and the release of the 2019-20 Budget by the current government on 2nd of April, it is worth taking a brief look at the past to understand how the national conversation has changed with regards to the R&D Tax Incentive- the primary...

New software R&D guidance

New software R&D guidance

This week AusIndustry released an updated guideline to claiming software development as an eligible core R&D activity under the R&D Tax Incentive. What can software developers do to ensure that their software development activities are more likely to pass as...

Senate rejects R&D tax changes

Senate rejects R&D tax changes

This week the Senate Economics Legislation Committee in a bipartisan decision deferred further consideration of the 'intensity test' changes to the R&D tax incentive announced in the 2018 Federal Budget.  This integrity measure will likely be considered only after...