On 1 July 2012 the gates opened for companies to make claims for Australia’s new R&D Tax Incentive program. If there were any doubts as to whether this new program would lure companies in, especially with the much hyped 45% refundable cash offset for SMEs, then these doubts have certainly been dispelled.

Most R&D tax consultants are reporting a significant rush in claimant activity, even at this early stage of the “claim season”. There was one report of a company having organised its accounts and claim to be prepared early so that it could submit its claim on 1 July itself.

Other companies are also reporting to be acting much more quickly than normal, pressuring accountants to finalise accounts as soon as possible as well as acting quickly to collate claim documents ready for lodgement with AusIndustry and the ATO.

Here at R&D SmartTax we are not too surprised by these reports, as there are two big reasons for companies to make a quick claim this year. The first is the potential for large amounts of cash to be handed out by the ATO. A 45% refundable cash offset can mean tens or hundreds of thousands of dollars in the bank for many small companies, with potentially millions on offer for loss-making researchers such as those in the biotechnology industry. The second big reason is the growing need for cash by SMEs. Australia’s current economic climate is leaving many industries, particularly those in the manufacturing sector, without much cash support. We know that thousands of SMEs are crying out for additional cash funding to keep businesses afloat. With this “perfect storm” of need for cash, plus a sizable cash (did we mention NON-TAXABLE) cheque on offer, it is no wonder everyone is hurrying to get their entitlement.

To check your eligibility, access claim templates and make sure you don’t miss out on your rightful cash entitlement this tax time, then visit our website here. And don’t hesitate to contact us at [email protected] if you have any queries.