In working to realise the Government’s policy objectives, AusIndustry and the ATO are committed to a guidance-led delivery effort. Comprehensive, appropriate, clear and accessible guidance is essential to achieving the program’s objectives and this Discussion Paper is an important step in enabling its development. AusIndustry and the ATO are seeking to develop strong guidance material to:

• assist companies transition from the old R&D Tax Concession to the new R&D Tax Incentive;
• support participants assess their eligibility  and  meet compliance obligations under the program;
• assist industry to protect and maximise their investments through both accessing the R&D Tax Incentive and progressing good practice knowledge management and R&D governance

Embodied in this Discussion Paper is the concept of an interactive guidance journey to enable ongoing consultation, communication, and the development of meaningful guidance materials for those who will use the program. Quality guidance needs to be underpinned by robust and ongoing dialogue between all participants in the program.

The Discussion Paper provides individuals, businesses and industry representatives an opportunity to engage with the guidance, compliance and education outlook for the program. It is also an opportunity for interested parties to provide feedback about the new elements of the program that require clarification.

A pdf of the Discussion Paper is available at AusIndustry’s website. There is also an rtf version available where comments can be typed directly in to Appendix 5: Consolidated list of Issues for Comment.

Submissions close on 22 December 2011.

AusIndustry thanks you for your time and looks forward to receiving your comments.

As part of the commencement of the R&D Tax Incentive, AusIndustry and the Australian Tax Office (ATO) held a series of public information sessions.

To date, over 2,400 attendees have registered to attend the information sessions around Australia and the feedback has been very positive. A copy of the presentation from the sessions is available on the AusIndustry Website.

On 13 October 2011, Innovation Minister Kim Carr announced the appointment of three new members to the Innovation Australia Board. Dr Nicholas Gruen, Mr Richard Shaddick and Mr Innes Willox will join the independent statutory body who oversights the administration of the Government’s innovation and venture capital programs.

Mr Shaddick is a chartered accountant with an extensive taxation background. He has specialised in international taxation, dealing with outbound and inbound investment to Australia and was a member of the Australian Taxation Office's Public Rulings Panel until 2010.

Mr Shaddick will chair the R&D Incentives Committee, renamed from the Tax Concession Committee to reflect its role in administering the new R&D Tax Incentive. The R&D Incentives Committee is the delegated decision-making committee for the R&D Tax Concession and R&D Tax Incentive programs.

Biographies of all board members can be found at the Innovation Australia page on the AusIndustry website.

A new R&D Tax Incentive Advisory Committee has been established to ensure the R&D Tax Incentive program provides the intended benefits to Australian industry from increased investment in research and development. Its members will include a wide range of industry and small business experts who will be responsible for canvassing a broad range of views on the operation of the R&D Tax Incentive.

The new R&D Tax Incentive became law on 8 September and gives your business greater opportunity to receive financial support for research and development.

The program offers generous incentives for businesses in all industry sectors. Your business could be eligible.

Timing of registration: The program applies to activities in all income years that start on or after 1 July 2011.

If your company has a standard income year (1 July to 30 June), the R&D Tax Incentive applies to activities that it conducts between 1 July 2011 and 30 June 2012. You will be able to register these activities for the R&D Tax Incentive after 30 June 2012.

To view further information about timing of registration (including key dates for companies with a 1 January to 31 December income year) visit the AusIndustry website.

Improvements to the program represent a great opportunity for your business to expand its R&D and innovative capacity.

Major changes introduced in the R&D Tax Incentive include:

• More generous benefits.
• A clearer, more targeted definition of R&D.
• The introduction of an advance finding function to enable to you to obtain certainty about the eligibility of your activities.
• Changes to the rules for foreign owned IP and overseas R&D.
• Greater assistance for small companies accessing expert R&D services, particularly those residing in public sector research organisations through the use of Research Service Providers (RSP).
• Changes to the requirements for registration in relation to members of consolidated groups.

The Bundaberg Brewed Drinks range is crafted from age-old recipes yet the research and development behind the beverages and the business is constantly being worked on and improved.

Chief executive officer John McLean has spent 15 years with Bundaberg Brewed Drinks and is proud of the fact that, despite having a product he knows is top shelf, the research and development never stops.