Deadline for R&D tax incentive registration fast approaching, warns ATO
The ATO is reminding businesses to keep detailed records of any R&D activities and expenditures they plan to claim.
With the research and development (R&D) tax incentive registration deadline fast approaching, the ATO is reminding entities to keep detailed, up-to-date records.
The Tax Office warned taxpayers to remain compliant with the R&D tax incentive registration guidelines to avoid the potential of an audit and further investigation.
Companies looking to register their 2023–2024 R&D activities must ensure they have detailed records to support their claim during tax time, the ATO said.
If a company’s income period ended 30 June 2024, the deadline to register the 2023–2024 R&D tax incentive activities in the Department of Industry, Science and Resources’ (DISR) customer portal is coming up at the end of this month on 30 April 2025.
The ATO said it encouraged taxpayers to get familiar with the R&D activities registration process and to request an extension if the deadline could not be met.
“Don’t forget – you must register your activities with DISR to then claim the R&D tax offset with your company tax return,” the Tax Office said.
“But registering your activities doesn’t mean you’ll automatically receive the offset at tax time – the ATO conducts its own reviews of claims being made.”
It was also noted that those who looked to claim the incentive should be aware that the ATO and DISR conducted compliance reviews and audits of claims to ensure legal compliance.
Records of activities would need to include details such as the nature of the activities, the costs involved and how certain expenditures were relevant to the specific activities.
“It’s crucial to keep detailed records of the R&D activities and expenditures you want to claim, from the time they were carried out,” the Tax Office said.
“Relying solely on records created later, at the time of preparing your company tax return, can result in your claim being rejected.”
To avoid rejection, the ATO also advised companies to stay updated on detailed information about keeping R&D records, how to keep them and for how long through its tailored communication channels.
About the author
