Enhanced Transparency for Research & Development Claims

In accordance with changes to the R&D tax law in 2021, the ATO will now annually disclose details about research and development tax incentives (RDTI) to enhance accountability and transparency within the RDTI program. 

This requirement primarily impacts businesses that have lodged a company tax return with an R&D tax offset claim. 

The first time they will share this information will be in September 2024, which will include details about companies that started their financial year after July 1st, 2021 and have claimed a tax offset for research and development in their tax return. 

What information will be disclosed? 

This disclosed information will include the name of the R&D entity, its Australian Business Number (ABN) or Australian Company Number (ACN) and the total expenditure on R&D activities. 

While the ATO is committed to transparency, disclosures will adhere to the Taxation Administration Act 1953, meaning the information provided will not extend beyond these parameters. 

Key implications

With these changes now in force, businesses should conduct thorough reviews of their RDTI claims to ensure compliance with the new transparency measures. 

For further updates and insights into the latest developments on R&D be sure to read, Updated ATO Alerts on R&D Tax.

Businesses engaged in eligible R&D activities during the financial year ending June 30th 2023, are also reminded to register your FY23 claim by 30th April, 2024. 

By staying informed and seeking professional advice from your Simmons Livingstone advisor, you can navigate RDTI claims effectively. Speak with your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au