AusBiotech makes submission on R&D Tax Incentive quarterly payments

AusBiotech has been advocating for quarterly payments since its first submission on the Tax Credit and is pleased to see the Government responsive to the cash-flow needs of small companies, giving companies the ability to smooth out cash-flow over the year and provide increased predictability.

A survey conducted by AusBiotech as part of a series of member briefings on the R&D Tax Incentive, indicated the timing of the receipt of payments (i.e. quarterly or annually) will be a critical factor in its value as an incentive for additional R&D activities.

In its recent submission, AusBiotech contributed comments recommending:

• Less complexity in the multiple-step claiming process; asked the Government to give an undertaking to set the number of days that will elapse in each step and give an assurance that the whole claim process will be finalised within four weeks of initiation; and leniency of timeframe or repayment provisions if an amount is overpaid.
• The Government develop an online calculator to appear on the ATO website, that is accompanied with the claim process steps and maximum guaranteed timeframes for each step. This will enable companies to have a clear oversight of how the process works and give immediate self-guidance and assessment for business planning purposes.
• The dual-managed scheme requires serious attention to the full integration and harmonisation of the process between ATO and AusIndustry, as well as consistency within each organisation.
• Consideration should be given to personnel needs to be able to assess claims in a timely manner and enable the quarterly refunds to flow to business.

The full submission can be found here.