Information from the R&D section of company's tax return will be published and available publically. This will commence for FY22 information to be published in September 2024.
What is this requirement about?
As part of the changes made to the Research and Development Tax Incentive (R&DTI) from 1 July 2021, the Australian Taxation Office (ATO) is now required to publish information each year about R&D entities and the R&D expenditure they’ve claimed.
When will this occur?
The first publication is for R&D entities that lodged a 2022 company tax return (CTR) with an R&DTI offset, and whose income year began on or after 1 July 2021. The ATO expects to publish this information in September 2024.
Why is this happening?
The R&DTI aims to boost competitiveness and improve productivity across the Australian economy. Therefore, the intent of the ATO publishing this information is to improve public accountability for R&DTI claimants and to encourage voluntary compliance.
This new requirement was part of the changes made to the R&D tax incentive from 1 July 2021. For further information visit ato.gov.au/RDTaxTransparency.
What information will be published?
The information that the ATO will publish from the forms lodged with them will be the:
- name of the entity claiming the R&DTI;
- entity’s Australian Business Number (ABN) or Australian Company Number (ACN);
- entity’s total expenditure on R&D (known as total notional deductions claimed – label Z in Part A of the R&DTI schedule) less any feedstock adjustments (label B in Part B of the R&DTI schedule).
Where does the information come from?
The ATO will base this on what was provided in your CTR, or, if you amended your CTR, your amended CTR. If the Commissioner amended the labels, the ATO will be required to publish the total expenditure on R&D based on the CTR lodged prior to the Commissioner-initiated amendment.
How has the ATO communicated this requirement?
In November 2023, the ATO emailed tax agents that represent clients whose information will be published in 2024, to:
- let them know about the new requirement;
- encourage them to review the R&D labels that will be published, and lodge an amendment to correct any information.
What else is there to know?
The ATO aims to keep claimants and tax agents informed about their implementation of this new requirement. At this stage, there are no details on exactly where/how the publication of this information will occur.
Is there anything that I need to do?
You don’t need to do anything. The information will come from your CTRs lodged.
Is there any reason for me to be worried?
You don’t need to be worried. The information in your CTRs lodged is accurate.
More information
For further information visit ato.gov.au/RDTaxTransparency