FAQs
General FAQs
Does Rimon offer grants for start ups or non-for-profit companies?
Rimon Advisory specialise in the R&D tax incentive and the Export Market Development Grant. These grants can both be used for start-ups at different stages.
We don’t deal with non-for-profit grants
Is there a deadline to apply?
The deadline for the R&D tax incentive is 10 months after the company’s year end.
R&D Tax Incentive FAQs
What is the R&D Tax Incentive grant?
The R&D Tax Incentive is a federal incentive aimed at assisting and growing innovation in Australia. The government funds north of $3 Billion per annum towards innovation via this incentive.
The benefit of the R&D tax incentive for small entities under $20m in aggregate turnover can be up to 43.5% of the R&D spend. The benefit can be actualised either via a cash back benefit or a tax saving benefit - dependant on the profit or loss situation of the company claiming.
If the business claiming has sufficient losses then the benefit is a cash back benefit of 43.5%. If the business claiming is in a profit then the benefit is a tax saving benefit of 18.5%
Should the claiming business have more than $20 million in aggregate turnover then the benefit is non-refundable R&D tax offset equal to the company tax rate, plus an 8.5% premium on R&D spend up to 2% of total expenditure and a 16.5% premium on R&D spend above 2%.
How does the R&D grant work?
Essentially the R&D tax incentive is a tax offset in a company’s tax return. Should the company have the requisite losses then the offset is utilised as a refundable offset.
In other words a company is dipping into their losses in their current day rather than waiting for their future to match their losses to their profits in order to save tax. The tax rate on the incentive (43.5%) is also higher than a company’s tax rate yielding a higher benefit than the company simply offsetting prior year losses against current year profits.
Should a company be in profit then the incentive is used as an offset in the more traditional sense and the claiming company will have a lower tax expense
How do I find out if my business is eligible?
There are many avenues to investigate if your company is eligible for the incentive.
A plethora of information can be found on the ATO website and the Department of Industry, Science, Energy and Resource for someone wanting to do their own research.
The law governing the incentive is very complicated. Advice can be sought to understand one’s eligibility As a starting point have a look at Rimon’s eligibility assessment by clicking here. Feel free to reach out to Rimon and we will do a free assessment for you.
How much can I claim with the R&D Tax Incentive grant?
A company can claim all eligible R&D activities and expenditure in the financial year being claimed.
A claim can be done for any financial year that R&D occurred provided that the R&D activities were submitted by the required deadline. Limits on the incentive only really come into play when a company has either of these points:
- $100,000,000 in R&D expenditure
- $20,000,000 in aggregate turnover
Should a company be in one of these categories it is still worth seeking advice as the benefit in these categories can still sizeable even though it is lower than 43.5%.
How do I apply for the R&D Tax Incentive?
There are 2 main processes in submitting the incentive:
- Submitting the AusIndustry application form identifying and expounding on a company’s R&D technical activities
- The deadline on the application form is 10 months after a company’s financial year end
- The application form can be accessed here
- Submission of an R&D tax incentive schedule
- This is done via a company’s tax return
- This part of the submission governs the actual monetary value of the R&D activities being claimed
- A R&D tax incentive schedule is submitted alongside the tax return and the figures contained in the R&D tax incentive schedule also need to be included in the tax return
Information on the R&D tax incentive schedule can be found here
EMDG FAQs
What is the EMDG?
The Export Market Development Grant is a federal grant aimed at boosting the cashflow of Australian exporters.
It is a cashback rebate type grant that allows businesses spending money on marketing overseas to get back up to 50% of their foreign marketing expenses.
The grant can be used on 8 different occasions spanning 8 separate claims
How does the EMDG work?
- Overseas representatives
- Marketing consultants
- Marketing visits
- Free samples
- Trade fairs, seminars, in-store advertising
- Promotional literature & advertising
- Overseas buyers
- Registration and/or insurance of eligible intellectual property
How do I find out if my business is eligible?
There is a lot of information available online if one would like to self assess their eligibility.
The AusTrade website is a great source of information.
The law governing the Export Market Development Grant is very complicated. Advice can be sought to understand one’s eligibility. As a starting point have a look at Rimon’s eligibility assessment by clicking here. Feel free to reach out to Rimon and we will do a free assessment for you.
How much can I claim with the EMDG?
A business can claim as many eligible expenses as they would like in any 1 claim. However the maximum expenses that will be eligible for payout is $305,000.
Assuming all the $305,000 are eligible, AusTrade will exempt the first $5,000 and pay out the remaining 50% of the $300,000 eligible expenditure. This will leave a grant of $150,000 receivable by the claiming business.
The minimum amount required to submit a claim is $15,000. According to the same formula above, the grant on a $15,000 claim is $5,000.
How do I apply for the EMDG?
The grant is submitted to AusTrade via the online portal which can be found here.
A business needs to articulate their product / service in a manner acceptable to AusTrade. Once articulated then the appropriate eligible expenses need to be uploaded to the portal before submission.
Once Submitted AusTrade will be in communication to set up the audit to go through the claim
Are You Eligible?
If you are an incorporated Australian entity (Pty Ltd or Ltd) and have spent money on Research and Development in the current year or the previous year then you could be eligible for a 43.5% cash refund or tax saving on your R&D costs.
Find out if you may be eligible: