A new ruling allowing the tax office to assess the eligibility of activities under the research and development tax incentive (RDTI) has “muddied the waters” of the scheme and effectively “unwinds 40 years of convention”, according to MJ Associates partner Kris Gale.
The R&D tax incentive is the federal government’s most significant innovation lever and costs taxpayers more than $3 billion a year.
It is run under a dual-agency model, with the Australian Taxation Office handling the financial and tax side of the program, and AusIndustry typically determining the eligibility of research and development activities.
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R&D is a mess, run by no expertise at all. Not in the ATO. Not in DISR.