Choosing an R&D Tax Incentive advisor can affect how clearly your activities are assessed, how your claim is prepared and how much work your team needs to do. These questions can help you compare advisors and understand what support they provide.
Quick guide
Before engaging an advisor, ask whether they:
- have both technical and financial expertise
- explain how they assess activities and supporting evidence
- handle both the AusIndustry registration and the ATO R&D Tax Incentive Schedule
- explain their fees and what ongoing support is included
- have experience with businesses like yours
1. Who will work on my claim?
Ask who will assess your R&D activities, prepare the technical material and review the financial information. Find out what experience those people have and whether you will speak directly with them.
An R&D claim involves technical and financial questions. Your advisor should be able to understand the work your team performed and explain how the eligible expenditure has been calculated.
2. How do you assess whether activities are eligible?
Ask the advisor to explain their assessment process in plain language. They should be able to show how they identify the technical uncertainty, the work undertaken to investigate it and the results.
Under current R&D Tax Incentive rules, core R&D activities must involve an outcome that could not be known or determined in advance, and a systematic progression of work to determine that outcome. Some activities that support core R&D may also qualify, but they must meet the relevant requirements. Read the Australian Government’s guidance on core R&D activities and supporting R&D activities. You can also read Rimon’s overview of what may be eligible for the R&D Tax Incentive.
A credible advisor should explain that a commercial project can include different types of work. The whole project should not automatically be treated as eligible R&D.
3. What records should we keep?
Ask what records the advisor will need and how they can help you organise them. Depending on the project, useful records may include experiment plans, technical reports, test results, emails, task records, timesheets and financial documents.
Good records help explain what was uncertain, what work was performed, what was observed and what was concluded. For examples relevant to software businesses, see Rimon’s article on R&D Tax Incentive claims for software development projects.
4. Who prepares the technical and financial parts?
Ask whether the advisor can help with both the activity registration and the financial claim, and who is responsible for each part.
The activity registration and the R&D Tax Incentive Schedule involve different information. The technical material describes the activities. The financial material identifies and calculates the eligible expenditure. The process should connect the two.
You can read more about Rimon’s R&D Tax Incentive process.
5. What happens if the ATO or AusIndustry asks questions?
Ask what support is available if your claim is reviewed, what that support includes and whether it is covered by the engagement fee.
No advisor can guarantee that a claim will not be reviewed or that a review will have a particular outcome. They should be clear about the assistance they can provide and help you understand the records and explanations that may be needed.
6. How much work will our team need to do?
Ask what information your team will need to provide and how much time the process is likely to require.
Your advisor should explain the steps, request information in a manageable way and keep you updated. They should still involve the people who understand the technical work and the company’s financial records.
7. How are your fees calculated?
Ask whether the fee is fixed, hourly or based on the benefit, and what services are included. Confirm whether technical preparation, financial calculations, lodgement and review support are included or charged separately.
Ask for the fee basis in writing before you engage the advisor. You should understand how the fee is calculated and what could cause it to change.
8. Do you understand our industry and type of R&D?
Ask whether the advisor has worked with businesses in your sector and how they approach activities like yours.
The technical questions can differ across software, manufacturing, biotechnology, agriculture and other industries. Relevant experience can help an advisor ask better questions, but it does not replace a careful assessment of your specific activities and evidence.
9. Can you support other funding applications?
If your business is considering other government funding programs, ask whether the advisor can help and how those programs interact with your R&D claim.
For example, some businesses may also consider the Export Market Development Grant. Any application should be assessed against that program’s own eligibility requirements.
How Rimon Advisory supports R&D claims
Rimon Advisory brings together Technical, Financial and Compliance Teams to prepare and review R&D Tax Incentive claims. Rimon has completed more than 2,000 submissions, has more than 50 years of combined team experience and has helped businesses secure more than $300 million in government funding.
Read more about why businesses choose Rimon Advisory for R&D Tax Incentive consulting.
If you are comparing R&D Tax Incentive advisors, ask questions about the people, process, evidence requirements, fees and support that each one provides. Contact Rimon Advisory to discuss your business and the work you are considering claiming.
Frequently asked questions
Can an advisor tell me whether my activities are eligible?
An advisor can assess your activities against the program requirements and explain the basis for their view. Eligibility depends on the nature of the activities, the uncertainty being investigated and the evidence available.
Does every part of a product development project qualify?
No. A project may include eligible R&D activities as well as routine development, production, maintenance or other work. Each activity needs to be assessed against the relevant requirements.
What should I do before speaking with an advisor?
Prepare a brief description of the technical work, what was uncertain, what your team did to investigate it and what records you have. You can also gather relevant financial information, such as payroll and project cost records.
