19 April 2022
On Wednesday 6 April 2022, AusIndustry released new software specific guidance for the R&D Tax Incentive. The new guidance outlines the requirements for core and supporting R&D activities, the evidence that is required to support an R&D Tax Incentive application and includes specific extended software case studies.
Activity definitions
The guidance reinforces the requirement for core R&D activities to be focussed on scientific or technological unknowns assessed by a competent professional in the field. The scientific or technological unknowns must then lead to a systematic progression of work which has the purpose of generating new knowledge. While not explicitly stated in the guidance, it is implied that challenges relating to commercial concerns, such as end user engagement or usability, would not satisfy scientific or technological unknowns for a core R&D activity.
The requirement for evidence
As is consistent with all other AusIndustry guidance there is a strong emphasis on the requirement for contemporaneous supporting documentation to be retained while conducting R&D activities. The guidance provides a detailed list of documentation that could be used in a software context to support an R&D claim.
New Case Study
An extended case study is included in the new guidance to assist claimants with interpreting the R&D requirements and applying them in a practical context. In a first in guidance from AusIndustry, sample text for what should be included in the application form is also provided.
If you have any questions, please feel free to contact Sophia Varelas.
Contact us
Sophia Varelas
PwC | Private | National Leader - R&D and Government Incentives, PwC Australia
Tel: +61 417 208 230
