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Top Tax Tips – 11 April 2018

Lodge your 2017 research and development (R&D) claims by 30 April 2018

Certain companies can claim a tax offset for expenditure incurred on R&D activities. The aim of this offset is to encourage companies to invest in R&D work to create new or improved materials, products, devices, processes and services.

Lodging your claim on time may give rise to the following benefits for you:

  • a cash injection (e.g. a cash rebate equal to 43.5% of the amount spent on R&D activities) for companies that have a turnover of less than $20 million a year; or
  • a non-refundable tax offset of 38.5% for companies with a turnover of $20 million or more a year (i.e. the offset reduces tax payable and therefore can only be used in years the company has taxable income).

The deadline for the lodgement of the 2017 R&D tax concession claim with AusIndustry (a division of the Department of Industry, Innovation and Science) is 30 April 2018 and if this deadline is missed the company is not eligible for a R&D claim.  We can assist you with lodging your claim.

Mineral exploration companies to take action from 16 April 2018

Small Australian mineral exploration companies that want to participate in the Junior Minerals Exploration Incentive (JMEI) program for the 2018 income tax year, must lodge application forms between 16 April 2018 and 15 May 2018 (detailing their estimated 2018 minerals expenditure, tax loss, corporate tax rate and amount of capital to be raised).

The JMEI replaces the Exploration development incentive program that ended on 30 June 2017.

The benefits of partaking in the JMEI program is that participant companies can provide exploration credits (i.e. a type of offset from converting a portion of the company’s tax losses) to their investors to encourage investments in such Australian prospecting companies.

Because allocation of such credits will be done on a first-come, first-serve basis until the 2018 cap of $15 million is reached, companies must lodge their application forms before the cap is used up.

Please contact us if you are interested in partaking in the Junior Minerals Exploration Incentive program or need assistance in preparing and lodging the application form.

Send us your information for your SMSF returns

The new superannuation tax law changes mean that preparing your superannuation funds financial statements and tax returns is taking longer this year. Therefore, please send to us your SMSF information for your SMSF’s 2017 accounts and tax return as soon as possible. The ATO have extended the lodgement deadline for SMSFs this year because of this additional work. Trustees of SMSFs must lodge their annual returns by 2 July 2018.

How can Nexia Edwards Marshall help you?

For any questions or to discuss any of the above in relation to your personal situation, please contact Sarah McEachern or your Nexia Edwards Marshall Adviser.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.

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