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MJA Updates
R&D Tax Incentive & The 2020 Federal Budget: A Good News Story At Last Program To Be Strengthened In 2020/21; Proposed Cuts Abandoned
The thousands of companies that deliver Australian innovation have received a tremendous boost in tonight's Federal Budget.The current R&D Tax Incentive (RDTI) Bill, that sought to introduce $1.8 billion in cuts over 4 years from 2019/20 onwards, has been abandoned. This means that the current RDTI regime applies for the 2019/20 and the current financial years.In a truly exciting development, the…When Innovation Policy Resembles The Latest Hollywood Blockbuster
For those lucky enough to have made it back to the cinema, the main offering has been Christopher Nolan's latest magnum opus, "Tenet". It's not a spoiler to say that there are several shots throughout the movie displaying time moving forwards and backwards on the same screen. And, we were eerily reminded of that idea during this exchange between Prime…Just in time for Spring….
Spring is just around the corner, and even the Department of Industry, Science, Energy & Resources (the Department) has been doing some spring cleaning. The Department has just released its “refreshed” version of the principal guidance product for the R&D Tax Incentive program, namely the Guide to Interpretation. To view this refreshed Guide, please click here. The Department is seeking feedback on…Senate Committee Report Delayed till Post-Budget
In February 2020, the Senate referred the provisions of the Treasury Laws Amendment (Research and Development Tax Incentive) Bill (the Bill) 2019 to the Economics Legislation Committee for inquiry and report by 30 April 2020. This was then extended to 7 August,and then to24 August, presumably due to the restrictions imposed by Covid 19. On Friday 21 August 2020, the Senate…The R&D Tax Incentive – How To Take Some Of The Anxiety Away
Followers of the MJA Update will be all too keenly aware of the uncertainties associated with the outstanding Bill that cuts the value of the R&D Tax Incentive (the Incentive). The Bill pares back value for the Refundable R&D Tax Offset and slashes support for the vast majority of Non-Refundable Offset claimants off the back of a questionable R&D intensity premium measure.…ATO Issues Draft Taxation Determination Regarding Impact Of JobKeeper Payments
The ATO has released Draft Taxation Determination TD 2020/D1, setting out how the 'at-risk rule' (section 355-405 of the Income Tax Assessment Act 1997) applies to JobKeeper payments received by a company conducting activities eligible for the R&D Tax Offset.In short, the ATO is of the view that eligible R&D activities subsidised entirely or in part by JobKeeper payments will not attract…Public Hearing Into R&D Tax Bill Is Happening Next Monday
The Federal Government has announced today that the Senate Economic Legislation Committee’s (the Committee) delayed public hearing into the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 (the R&D Tax Bill) is taking place next Monday, 29 June in Canberra. The Committee is due to report back in August. At the time of writing, there are no details…R&D Tax Incentive: More Flexibility Provided In Respect of Finding Applications But The Most Pressing Question Remains Unanswered
In a pleasing development this week, the Federal Government has announced a three month extension for the lodgement of Advance and Overseas Finding applications through to 30 September for taxpayers with a 30 June 2020 financial year end in an acknowledgement of the effects of COVID-19 on Australian businesses. AusIndustry will accept a ‘provisional’ Advance or Overseas Finding application for…Living In The Time Of Recalibration – Why Should The R&D Tax Incentive Be Any Different?
We hope that this MJA Update finds you and your families doing as well as possible. One unavoidable consequence of the current pandemic is that certain words in the lexicon get rolled out as never before. Examples that come to mind are 'unprecedented', 'uncharted' and, yes, 'distancing'. Another is definitely 'recalibration'. Recalibration can take many different forms. Some look forward…Keep informed
MJA updates keep you informed on how government decisions will effect your business. This is a must if you want to know the latest on business and company insights without having to read and decipher complicated law and tax manuscripts.