Review of R&D Tax Incentive Dual Agency Administration Model

5 April 2022

In early 2021, the Federal Government announced the Board of Taxation (the Board) would undertake a review to evaluate the dual‑agency administration model for the R&D Tax Incentive (R&DTI). The report was completed in November 2021. 

On 29 March 2022, the Government announced the publication of the Report and noted that the Board’s report provides valuable insights into ways to further enhance the administration of the R&DTI program. Key recommendations from the report include:

• The dual administration model of the R&DTI program should be maintained
• There is no requirement for a separate software R&D regime
• Information sharing between the co-administrators should be improved
• Transparent and clear timeframes for Department of Industry, Science, Energy and Resources (DISER) findings and ATO audits. This should include publicly available timeframe expectations for finding completions and audits.
• Clear and concise guidance with examples should be released jointly between the two administrators including an overarching guidance document
• Binding determinations should be made in a timely and efficient manner
• Alternative Dispute Resolution mechanisms should be implemented for use before escalation to the Administrative Appeals Tribunal and to include all parties: the company, DISER and the ATO
• Consider the R&D application registration deadline to be brought forward
• Development and implementation of a Program Charter that is publicly available

Read the full report.