First annual R&D Tax Incentive Transparency Report released: Key insights
25/10/2024
The ATO has released the first Research & Development Tax Incentive (R&DTI) Transparency Report for 2021–22, detailing which companies claimed the R&DTI.
The ATO has published the first R&DTI Transparency Report covering the 2021–22 income year. The R&DTI program aims to strengthen innovation by providing tax offsets for eligible R&D activities. To promote greater transparency and voluntary compliance, a legal requirement for publication of R&D data came into effect in July 2021, following reforms to the policy and administration of the R&DTI program.
The report outlines the benefits received by R&D entities and seeks to raise public awareness on which companies benefit from the R&D Tax Incentive. It also aims to encourage voluntary compliance with the program’s requirement.
The R&DTI is one of Australia’s key programs to drive innovation, offering a tax offset to catalyse companies to engage in R&D activities they may not undertake due to the financial risks involved. This can allow companies to invest more in innovation, boosting their competitive edge while contributing to Australia’s economic growth.
Under the new legislation, the ATO is required to publish R&D data 2 years after the end of the financial year that the data relates to. The newly released transparency report offers key insights into the companies and industries leveraging the incentive to help invest in R&D activities:
- 11,545 companies claimed R&D expenditure in the 2021–22 income year, amounting to $11.2 billion in total claims.
- Small businesses represent a significant share of participants, comprising 48% of claimants.
- The industry with the highest number of claimants across all business populations is the professional, scientific, and technical services industry, accounting for 43% of claims.
- Public and multinational businesses claimed the highest expenditure, contributing $4.9 billion to the total
How SW can help
11,545 companies are included in the report, with around 850 companies excluded due to having a substituted accounting period (SAP) beginning before 1 July 2021.
If your company participated in the R&DTI program during the 2021–22 income year, your R&D claims are part of a publicly available report. The report details the names, ABNs, and total R&D expenditure.
The ATO added a notice to the R&DTI schedule informing future applicants that their data will be included in the R&DTI transparency reporting.
Please reach out to SW R&D Tax & Government Incentives team for guidance and further discussion on how this report impacts you and your business.
