WELCOME to QUANTUM BUSINESS HOUSE
By Ben Youn
Copyright 2015 Quantum Business House
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3 hours session
10 minutes tea time
Bathroom & Kitchen
Today’s Speaker
Please network each other
Future Plan
Business Forum
Networking Events
Business Mentoring
Copyright 2015 Quantum Business House
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Originally from R&D Tax Concession (change
made on July 01, 2011)
45% refundable tax offset for businesses less
than $20 million turnover
40% non-refundable tax offset for all other
eligible entities.
Administered by AusIndustry (activity part)
and the ATO (tax administration)
Copyright 2015 Quantum Business House
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Legal authorities:
Division 355 of Income Tax Assessment Act
1997
Part III of the Industry Research &
Development Act 1986
The Tax Laws Amendment (Research and
Development) Bill 2010 Explanatory
Memorandum
Copyright 2015 Quantum Business House
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Entities require to register eligible R&D
activities with AusIndustry within 10 months
after the end date of the financial year. (e.g.
April 30 is the due for June 30 entities)
Once approved by the AusIndustry, a
registration number will be given to the entity
to claim the incentive for the R&D
expenditure through tax return.
Copyright 2015 Quantum Business House
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Must meet the definition of Core R&D
activities
Supporting R&D activities
Self-Assessment and Record Keeping
Requirements
Compliance review by AusIndustry
Request of further evidences
Monitoring visits
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Core R&D Activities are experimental activities:
1. Whose outcome cannot be known or
determined in advance on the basis of current
knowledge, information or experience, but can
only be determined by applying a systematic
progression of work that:
a.
is based on principles of established science;
and
b. Proceeds from hypothesis to experiment,
observation and evaluation, and leads to logical
conclusions; and
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Copyright 2015 Quantum Business House
2. that are conducted for the purpose of
generating new knowledge that include new
or improved materials, products, devices,
processes and services.
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2.
3.
4.
5.
Market research, market testing or market
development, or sales promotion
Prospecting, exploring or drilling for
minerals or petroleum
Management studies or efficiency surveys
Research in social sciences, arts or
humanities
Commercial, legal and administrative
aspects of patenting, licensing or other
activities
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6. Activities associated with complying with
statutory requirements or standards.
7. Any activity related to the reproduction of a
commercial product or process.
8. Developing, modifying or customising
computer software for the dominant purpose
of use by entities for their internal
administration.
Copyright 2015 Quantum Business House
Activities directly related to core R&D
activities:
a. is an activity referred to in the core R&D
activities exclusion list; or
b. produces goods or services; or
c. is directly related to producing goods or
services;
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the activity is a supporting R&D activity only if
it is undertaken for the dominant purpose
of supporting core R&D activities.
Copyright 2015 Quantum Business House
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a.
b.
The prevailing or most influence purpose for
conducting an activity
the extent to which the activities also
achieve commercial or production outcomes
in addition to assisting the conduct of the
core R&D activities; and
The importance of those non-R&D
outcomes.
Copyright 2015 Quantum Business House
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2.
3.
4.
Is the activity a routine activity that is
normally undertaken for non R&D purpose?
Would the activity have occurred in the
absence of the core R&D activities?
To what extent are normal production
practices disrupted for the core R&D
activity?
How great is the risk that production
outcomes will be significantly compromised
as a result of the core R&D activity?
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5. Was there a purpose, other than supporting
core R&D activities, for infrastructure
developed in the activity?
6. Will the activity facilitate future that are not
core R&D activities.
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Application is required for overseas R&D
finding beforehand R&D activity application
 Four conditions must be met:
a. The overseas activity must be covered by an
advance finding that the activity in question
is an eligible R&D activity
b. The overseas activity must have a significant
scientific link to one or more core R&D
activities conducted in Australia
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Copyright 2015 Quantum Business House
c. The overseas activity cannot be conducted solely
in Australia because:
- Conducting it requires access to a facility,
expertise or equipment not available in Australia
- Conducting it in Australia would contravene a law
relating to quarantine
- Conducting it requires access to a population not
available in Australia; or
- Conducting it requires access to a geographical
or geological feature not available in Australia
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d. The total amount to be spent in all income
years by the company and any other entities
on:
- The overseas activities that meet the four
conditions; and
- Each other activity conducted wholly or partly
outside Australia that has a significant
scientific link to Australian core activities.
is less than the total amount to be spent in all
income year on:
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The Australian core activities; and
The activities conducted within Australia that
are supporting R&D activities in relation to
the Australian core activities.
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1.
2.
3.
4.
5.
6.
Background of the project
Preliminary Works
Technical Objectives & Risks
Commercialisation and Implementation
Scope and timeframe
Resource allocation
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2.
Medical Equipments Manufacturer
Software Development Company
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 Any
Questions?
Copyright 2015 Quantum Business House
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Ben Youn: Business Grant Consultant
Address: Level 8, 280 Pitt Street SYDNEY NSW
2000
Phone: (02) 8268 0388
Fax:
(02) 8268 0378
www.quantumhouse.com.au
www.australiantaxexperts.com.au
Copyright 2015 Quantum Business House