Is your R&D activity eligible for the tax offset?

The Australian Taxation Office (ATO) has highlighted the importance of correctly claiming the research and development (R&D) tax offset for eligible business activities.

In one example identified by the ATO, a pizza business claimed R&D expenses for trialling different toppings and oven settings to reduce cooking time. While the activity related to improving business operations, it did not meet the criteria for eligible R&D and the claim was required to be repaid.

Before claiming the R&D tax offset, it’s important to understand how the ATO assesses eligible R&D activities and what evidence is required to support a claim. Reviewing the ATO’s guidance can help businesses check their obligations and claim with confidence.

For information on how to get it right, go to the ATO website.