["success",{"Blog":{"id":"111","title":"December 2017 Newsletter","intro":"","body":"

It's December already!!!<\/strong><\/h1>\r\n
Thank you for all your valued support in 2017. From the team at ATCS, we wish you, your family and your friends a happy and safe Christmas, and a fantastic New Year.

ATCS will be on leave from 5pm Friday 22nd December, but will see you again on 2nd<\/sup> January 2018! <\/div>\r\n

Fact check: Supporting R&D activities<\/strong><\/h1>\r\n

Your question<\/strong><\/h2>\r\n

“I was told that if I can identify a core R&D activity then the rest of my project can be considered to be supporting R&D activities. Is that correct?\"<\/p>\r\n

The short answer<\/strong><\/h2>\r\n

That is unlikely to be correct as not all activities in a project are likely to be directly related to an eligible core R&D activity. Typically, establishing eligibility for the R&D Tax Incentive is based on isolating specific R&D activities within a broader commercial improvement project rather than claiming the entire project.<\/p>\r\n

In a little more detail<\/strong><\/h2>\r\n

R&D is a key input to innovation, but innovation isn’t always R&D. The R&D Tax Incentive is intended to encourage companies to undertake experimental R&D activities that they might not otherwise carry out. As with all tax incentives, eligibility for the R&D Tax Incentive is self-assessed. It is important not to claim more than you are entitled to, or you risk having to pay it back, and potentially incur costly compliance fines.<\/p>\r\n

Eligibility for the R&D Tax Incentive is not assessed at the project level. It is assessed at the activity level. When claiming, you must identify the specific R&D activities you have carried out. It is usually (but not always) the case that companies undertake projects that include activities that extend beyond R&D and are not directly related to the R&D undertaken, to develop new or improved materials, products, devices, processes or services – these activities are not eligible for assistance under the R&D Tax Incentive.<\/p>\r\n

Eligible R&D activities are split into two categories: Core R&D activities<\/strong>, which are experimental, and supporting R&D activities<\/strong> which do not have to be experimental but must have an immediate and directly supporting relationship to the core experimental activity.<\/p>\r\n




Hypothesis<\/strong>: A concept, theory or idea that is tested by experimentation leading to new knowledge.<\/p>\r\n

Experiment<\/strong>: is what you do to test a hypothesis. An experiment is set up so that the relationship between relevant variables specified in the hypothesis can be tested and proven either right or wrong.<\/p>\r\n

Core R&D activities<\/strong>: experimental activities that you can claim against the R&D Tax Incentive.<\/p>\r\n

Supporting R&D activities<\/strong>: activities that are directly related to core R&D activities.<\/p>\r\n


In order to be eligible, there must be an experiment or experiments being carried out for the purpose of generating the new knowledge you seek. These experiments consist of the core R&D activities<\/strong>. The outcome of the experiments cannot be able to be known or determined in advance by a competent professional in the field. The experiments being carried out must be based on the principles of established science and must seek to prove whether specific technical hypotheses are right or wrong to resolve specific technical issues or risks.<\/p>\r\n

Supporting R&D activities<\/strong> may also be eligible if they are directly related to eligible core R&D activities. It is not sufficient that these activities are related to the project more generally; there must be an immediate relationship to the design, set-up, conduct, observation, evaluation and drawing of conclusions of the experiment. Additionally, in some circumstances supporting activities must also be conducted for the dominant purpose<\/strong> of supporting the experimental activities. <\/p>\r\n

<\/p>\r\n<\/div>","author":"ATCS","image":"Christmas Banner.jpg","submitted":"December 12, 2017"},"BlogTag":[]}]