The Australian Taxation Office (ATO) reminded companies on 3 April 2025 to register their R&D tax incentive activities with the Department of Industry, Science and Resources (DISR) by 30 April 2025 to claim the R&D tax offset for the 2023-2024 financial year. Companies who won’t be able to meet the deadline can request for an extension.
Companies must register their activities with DISR to then claim the R&D tax offset with their company tax return. However, registration does not guarantee the incentive, claims will be reviewed by ATO.
Companies should keep detailed records of their R&D activities and expenses as they occur. ATO states that these records must demonstrate the nature of the activities, the costs involved and how these expenditures relate to the activities. Relying solely on records created later, at the time of preparing the company tax return, can result in claims being rejected.
Records must generally be kept for a minimum of five years. A penalty may be imposed if proper records are not kept.
