Software guidance for businesses claiming tax incentive

Friday, 22 February, 2019

Software guidance for businesses claiming tax incentive

A new software guidance has just been published which will help businesses obtain access to the research and development tax incentive (R&DTI).

Minister for Industry, Science and Technology Karen Andrews said the software guidance will provide the technology sector with greater clarity on the eligibility of software activities under the R&DTI, and assist companies in making decisions.

“The R&DTI is a vital part of the Liberal National Government’s plan to increase investment, and part of our commitment to fostering the innovation ecosystem,” Andrews said.

“We need to ensure this investment is supporting research and development that has spillover effects for additional Australian jobs and economic growth.

“The majority of software businesses are trying to do the right thing, but some are claiming the incentive incorrectly.

“The guidance does not change the eligibility of software under the R&DTI, but provides more clarity to companies around what are considered eligible software research and development activities under the program and what are not, helping them to self-assess their claims more effectively.”

The R&DTI is designed to encourage businesses to invest in research and development that they may not otherwise undertake but for an incentive on offer.

“We’re seeing a diverse range of industry sectors claiming for software activities, reflecting the increasing importance of software in modern business,” Andrews said.

“The R&DTI is just one of the tools on offer to help businesses maximise their opportunities to innovate, grow and prosper in the technology sector.”

The guidance, developed with comprehensive industry consultation, is part of a broader program of user-focused education products being rolled out by the Department of Industry, Innovation and Science to improve clarity and support to businesses seeking to claim the R&DTI.

In the five years from mid-2013 to June 2018, the government is expected to have provided over $14 billion in R&D tax incentive to companies to conduct R&D, including support for software activities.

The guidance is available at

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