The ATO has released the first annual R&D tax incentive (RDTI) transparency report for companies that claimed in the 2021-22 income year.
The report shows the name of each company that made a claim and their total R&D expenditure.
It also breaks down the data across company size, type and industry. Key takeaways include:
- Total number of companies that claimed R&D expenditure: 11,545
- Total amount of R&D expenditure: $11.2 billion
- Small businesses (less than $10 million in aggregated turnover) account for 48% of total claimants
- The top 5 industries (in order):
- ‘Professional, scientific and technical services’ – this covers a broad range of businesses including scientific research, computer system design
- Manufacturing
- Wholesale trade
- Information media and communications
- Financial and insurance services
- The average claim per entity size/type:
- public and multinational businesses – $3,095,496
- privately owned and wealthy groups – $931,824
- small businesses – $395,191
A copy of the report can be found here, and you can read about the background to the transparency measures here.
The ATO has again used the opportunities to highlight the compliance activities that occur in the program. The ATO and DISR regularly conduct compliance reviews and audits of R&D entities to ensure the ongoing integrity of the R&DTI program. While it is a self-assessment program, the ATO emphasises that it has sophisticated systems in place to identify non-compliance.
To help manage compliance risks it’s important to engage a reputable provider. Reach out to us here and we would be happy to discuss your eligibility for the R&D tax program.
