On 15 August 2025, AusIndustry released an updated version of the application form for registering R&D activities on the R&DTI portal. This new form must be used for all future applications. Any draft applications created before that date were deleted. 

The R&D Tax Incentive is one of Australia’s key programs for driving innovation. It offers a tax offset designed to encourage companies to undertake research and development activities they might otherwise avoid due to financial risk. The incentive allows companies to invest more in innovation, boosting their competitive edge while contributing to Australia’s economic growth.

To be able to claim the R&DTI, R&D activities must be registered on the R&DTI customer portal within 10 months after the end of the relevant income year. While the program’s eligibility criteria remain unchanged, the updated application form now requires more detailed information. The updates include the addition of new questions and an increase in character limits for questions that previously had character limits of 1000 to 4000. 

The table below sets out all the new and updated questions in the application forms:

The recent changes to the application form reflects a shift towards greater self-assessment and compliance at the application stage. We recommend that companies carefully review and reassess their current application preparation process. 

How SW can help

SW’s R&D Tax & Government Incentives team offers practical support to help businesses navigate the updated R&DTI application process. With extensive experience in preparing and reviewing claims, we can assist with understanding new requirements, strengthening documentation, and ensuring compliance. Whether you’re new to the incentive or refining your approach, our team is here to guide you every step of the way. 

Contributors

Thomas Demel

Lachlan Murfett

The post R&D Tax Incentive: Updated online application form for registering R&D activities appeared first on SW Accountants & Advisors.

What is an Advance Finding?

An Advance Finding is a decision about the eligibility of R&D activities for the R&D Tax Incentive. A positive Advance Finding can cover R&D activities for up to three years. While eligible Australian R&D activities can be registered with or without an Advance Finding, any R&D activities conducted overseas must have an Advance Overseas Finding in place before an R&D Tax Offset for these activities can be claimed.

In order to register and claim the R&D Tax Offset for activities conducted overseas a company must first apply for an Overseas Finding.

The Overseas Finding process

To receive an Overseas Finding for an overseas R&D activity, the company must demonstrate that it meets the following 4 conditions:

1. The overseas R&D activity must be an R&D activity (meet the R&D Tax Incentive requirements for being either a core R&D activity or a supporting R&D activity).
2. There must be a scientific link to an Australian core R&D activity and the Australian core R&D activity can’t be completed without conducting the overseas activity.
3. The overseas R&D activity must not be able to be conducted in Australia or its external Territories.
4. The costs of overseas R&D activities must be less than the costs of related R&D activities undertaken solely in Australia.

When should I start the process?

Applications for Advance and Overseas Findings must be lodged before the end of the income year of the registrant. Late applications cannot be accepted under any circumstances.

Advance and Overseas Finding Applications can be complex. If a company considers an Advance and Overseas Finding Application, the process should be started as soon as possible and well before the Application deadline on 30 June 2023.

How can SW help?

Our R&D Tax Incentive experts have extensive experience in preparing Advance and Overseas Finding Applications and assist in:

• determining the eligibility of overseas activities
• providing guidance regarding the required evidence to demonstrate why an activity can’t be solely conducted in Australia
• the preparation of detailed Advance and Overseas Finding Applications
• the finding process post-lodgement of the Application.  

Contributors

Thomas Demel, Senior Manager R&D Tax and Government Incentives Tax

Lachlan Murfett, Assistant R&D Tax and Government Incentives Tax

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It has become increasingly important for Australia to attract for R&D investment on the global stage. Over 20 jurisdictions, including Singapore, the UK and numerous European countries already have incentives that offer concessional tax treatments to IP-derived profits.

The Patent-Box regime was first announced in the 2021-2022 Budget, as part of the Federal Government’s efforts to incentivise R&D and commercialisation of innovations in the medical and biotechnology sectors, as well retaining associated patent profits in Australia.

Following a public consultation in 2021, legislation has now been introduced into the House of Representatives.

What is the Patent Box regime?

As part of the new legislation, income directly attributable to eligible patents will benefit from a reduced concessional tax rate of 17%.

This only applies to patents granted after 11 May 2021 and for income years starting on or after 1 July 2022, to the extent the underlying R&D has been undertaken in Australia. The decision to include patents applied for before the Patent Box Federal Budget announcement is one of the positive changes resulting from consultation and caters for the significant R&D generally still required to be performed after the lodgement of the patent application. 

Who will be eligible?

Businesses in the medical and biotechnology sector who hold patentee rights over an eligible medical or biotechnology patent linked to a therapeutic good included on the Australian Register of Therapeutic Goods (ARTG) are able to benefit from the new Patent Box initiative.

In order to qualify, a business is required:

• to be an Australian resident or have a permanent establishment in Australia, and
• the patent must be either an Australian standard patent, a United States Utility Patent or a European Patent.

This is a positive expansion on the original plan of only allowing Australian standard patents. In around 97% of cases, Australian businesses would file in at least one of these three jurisdictions. The coverage provided by this change would therefore reduce the additional compliance burden when accessing the Patent Box regime.

What types of income can be included?

The concessional tax treatment for eligible patent is broadly available to income from:

• the sale of a therapeutic good linked to the patent, royalties or license fees related to the patent
• a balancing adjustment event in relation to the patent, and
• compensation for patent infringements.

For certain types of expenditure, income arising prior to being granted a patent right or earlier sale may also be included.

How would the eligible income be calculated?

In order to comply with OECD standards, the patent box must follow a nexus approach. The available benefit is decreased, where the R&D is outsourced to a related party overseas, or an acquisition of IP developed by another party.

This is achieved by the introduction of a formula for calculating an “R&D fraction”, which determines how much of the income linked to the patent is eligible for the 17% effective tax rate.

The nexus approach aims to ensure the benefit provided is proportional to the R&D that the company has undertaken in Australia, leveraging the legislative framework of the R&D Tax Incentive as a basis for determining qualifying R&D expenditure.

The intent of using existing R&D concepts and definitions is to reduce compliance costs and utilise records already required to be maintained for demonstrating eligible R&D activities and expenditure.

What is the timing of the Patent Box regime?

To access the Patent Box regime, a company must elect for the Patent Box regime to apply. This is an irrevocable decision that would apply to all the company’s eligible medical and biotechnology patents on a prospective basis.

The timing for this election is crucial, as it is generally not possible to make a retrospective Patent Box election. Also be aware that once a patent is revoked or ceased, a company will no longer be able to access the Patent Box regime.

Positive outcome for innovation

R&D activity contributes to high-skilled, high-value jobs and provides significant rewards, spillovers and flow-on effects across businesses, sectors and the economy. Whilst Australia provides the R&D Tax Incentive to encourage R&D being undertaken locally, more than 20 other countries now provide a Patent Box regime. It is hoped that with Australia following suit, there will be an increase in local R&D investments and a reduction in the offshoring of IP.

The Australian Patent Box is an important measure to drive and reward investments in medical and biotechnology innovation in Australia. As a result, businesses will be hoping that Parliament passes the Bill this month, or at least prioritises its re-introduction after the Federal election in May.

What action should I take?

Now is the right time to start getting familiar with these measures given the Patent Box regime includes a number of income rules related to the proportion of income attributable to a patent, as well as mechanisms to provide preferential tax treatment only to the extent of the taxpayer’s Australian R&D activities, You should consider how your activities are structured to ensure eligibility and maximise your optimum benefit.

How can SW help?

With legislation now before Parliament, the ATO is in the process of developing more detailed guidance ahead of the first intended financial year of operation. SW will be releasing additional information once available.

SW has a specialist R&D Tax and Government Incentives team with a proven track-record in developing suitable governance and record keeping processes, similar to the ones required when applying the Patent Box. If you would like any further information, please contact a member of the SW tax or R&D Tax and Government Incentives team.

Contributors

Thomas Demel

The post Australia’s Patent Box Incentive – What are we expecting? appeared first on SW Accountants & Advisors.

Our team have specialised capabilities for every step of your journey, with long-term experience working with both high-growth businesses and successful entrepreneurs.

Our business advisory team will work with:

• to ensure your IP is secure
• your regulatory compliance is in place for your chosen sector
• you have a solid business plan that is practical, includes all required areas including marketing and budgets
• assist with a supportive network of advisors
• work with our R&D team to put in place an appropriate structure and have the right financial substantiation in place to access R&D and other tax incentives
• work through the process of appropriate business software to support your growth requirements
• work with you to build your KPIs and margins, with transparency of expenditure
• engage with potential investors or future board members
• when required, work through your exit strategy
• act as a mentor/coach on your journey and ask you the critical questions along your entire journey.

How we can help you:

Financials

• customised reporting & dashboards​
• budgeting & cash flow forecasting​
• finance management​
• finance team support​
• financial strategy​.

Tax considerations

• Federal Taxes (Income Tax & GST)​
• Statement Tax (Payroll Tax & Duties)​
• employment matters​
• tax advice​
• R&D and grant incentives​.

Financial data

• general purpose financial statements​
• quarterly cash flow statements​
• technical disclosures & papers​
• audit management​.

Governance, compliance and outsourced solutions

• automation & streamlining​
• internal controls & approvals​
• best practice processes​
• payroll & team management​
• reporting software​.

Specialised outsourced solutions

Cloud accounting​

The cloud is a platform to make data and software accessible online anytime, anywhere, from any device. Working in the cloud will give you a better overview of your finances and improve collaboration with your team and advisors and support applications for finance via provision of timely information. We can assist with financial management and reporting, software and processes, and regulatory compliance.​

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• identifying and scoping eligible R&D activities ​
• preparing the R&D Application for registration of R&D activities ​
• calculating eligible R&D expenditure and preparing the R&D Tax Schedule to claim the tax incentives ​
• assisting with R&D governance and documentation processes ​
• conducting R&D training and governance workshops.​

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While Australian producers have outstanding business opportunities and long-term capital growth potential, the agricultural sector is not without challenges – from water management to traceability, unpredictable weather patterns to logistics and from investment to export. Your needs across these are understood by our dedicated team of agribusiness advisors and accountants.

Leading providers of advisory, audit and tax services, the SW team works with a wide range of operators in the wine, beef, grain, wool, dairy farming and fruit growing businesses in the Australian market. Our experts support you by remaining at the forefront of key sector issues through our involvement with a range of industry organisations.

With our proximity to Asian economies of scale and extensive free trade agreements across the globe, agriculture and its associated business sector plays a significant role in the Australian economy. There is also significant international investment interest across the entire agricultural supply chain.  

Our Agribusiness services

We consistently provide value-add opportunities to connect with, and learn from, others in the industry. 

Industry Associations & Sponsorships

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Our R&D Incentive and Government Grants webinar provides the insights into what kind of Government support is available to business who are looking to grow, innovate and evolve.

Our experts covered some of the basics and discussed how a tailored strategy can help identify and unlock Federal and State assistance to maximise support and elevate businesses’ projects.

Our services

ShineWing Australia has a dedicated Research & Development and Government Incentives (RDGI) team with a national presence.

Our approach cuts through complexity to maximise success and understand the heart of what our clients want to achieve.

Our R&D services include:

• Identifying and evaluating eligible R&D activities and projects
• Calculating eligible R&D expenditure
• Preparing documentation for registration of R&D activities
• Preparing the R&D Tax Schedule to claim the benefit
• Assisting with compliance and project documentation
• Conducting R&D training sessions.

Government grants cover a broad spectrum of industries and activities, and generally require a high level of detail in the application. Clients recognise the opportunity and value that our expertise provides to significantly improve their rate of success.

These businesses have identified several key reasons they come to us:

• Identifying, scoping and applying can take many hours – time that is better spent on developing the business and product offering
• We know what’s happening in the grant funding landscape, and can tailor a Government Incentives strategy to your business as you grow
• Our Grants team can prepare high-quality applications and leverage our relationships with key government departments to maximise your chance of funding success.

Experts

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

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Updated: 9 December 2020

The Federal Government is offering manufacturing grants of up to $1M to attract the adaptation of new technologies, modernise manufacturing processes, create jobs and increase productivity in key priority sectors.

Grants are offered on a 1:3 funding basis, with the Federal Government contributing up to 25% of the total project cost. The minimum grant amount for this round is $100,000.

To be eligible, manufacturers must operate within one of the six priority industries:

• Resources technology and critical minerals processing
• Food and beverage
• Medical products
• Recycling and clean energy
• Defence
• Space.

Application process

Grant funding is awarded through a competitive process, with applicants having to submit a comprehensive application prior to the closing date on 21 January 2021.

The application must demonstrate how the funding will improve Australia’s manufacturing capability in the priority sectors, create high-value jobs, and lead to long-term and sustainable business growth.

Who can apply?

• Manufacturers in the key priority sectors are encouraged to apply
• Eligible applicants must be Small to Medium Enterprises with 199 or fewer employees
• Not-for-profits, partnerships, and individuals cannot apply to this round.

Important dates

Applications opened on 4 December 2020 and will be closing at 5pm (AEDT) 21 January 2021.

Please take into account time zone differences when submitting your application.

How can we assist?

The application process is competitive and complex, with limited funds on offer.

ShineWing Australia’s Government Incentives team can assist in project identification, writing comprehensive applications, and liaising with program managers to maximise your chance of funding success.

We had success in Round 1 of this Program so know our way around it!

To learn more and find out how you can seize the opportunity, get in touch with Sam Morris or John Anderson below.

Contacts

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