The R&D Tax Incentive program stands as one of the primary initiatives of the Federal Government to support innovation, incurring an annual cost exceeding $2.5 billion from the Treasury and taxpayers. 

Recently, the government enacted new transparency measures, mandating the annual disclosure of a limited set of R&D data for each of the 12,000 claimants. The Australian Taxation Office (ATO) oversees this responsibility.

Despite the contradiction with the program’s confidential nature, it’s crucial to understand that the disclosed data:

a) only becomes public two years after the conclusion of the relevant financial year, 

and

b) includes only the Legal Name, Australian Business Number (ABN), and R&D Notional Deductions based on the final Company Tax Return data for that year.

The published information excludes details about the nature of R&D, specific activities, and other financial particulars like Turnover or Taxable Income/Loss. In September 2024, the ATO will release its initial report covering claimants from the FY22 period. 

This disclosure will continue annually as long as the legislation supporting it remains in effect. 

For additional information, please refer to the following link: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/research-and-development-tax-incentive-and-concessions/research-and-development-tax-incentive/r-d-tax-transparency-reports

Feel free to contact us on (02) 9957 4033 if you wish to discuss this matter further.