In line with focussing on tax transparency, good governance and paying your fair share, the ATO is concentrated on ensuring the integrity of the R&D Tax Incentive (RDTI) program.

This is not surprising given the important role the RDTI plays in fostering Australian-based innovation, research and development. To assist, the ATO has released further clarification and guidance on R&D Tax integrity rules. Attention is given to recurring issues the regulators have identified with RDTI claims including:

  • Associate expenditure 
  • Contract R&D arrangements, 
  • Aggregated turnover 
  • Overseas expenditure
  • Expenditure not at risk. 

The ATO also announced it will begin publishing an annual transparency report on the RDTI program starting from September 2024. This will include the name of R&D entity, the R&D expenditure claimed (total notional deductions) and ABN/CAN. The first publication will apply to R&D claims made for the year ended 30 June 2022. For more detailed information, you can visit the ATO’s website.

Get in touch with Grant Thornton’s team of R&D Tax specialists to understand the integrity provisions or how these changes may impact your business.

Learn more about how our Research and Development (R&D) Tax Incentive services can help you
Visit our Research and Development (R&D) Tax Incentive page
Learn more about how our Research and Development (R&D) Tax Incentive services can help you