tax-lawyer-au-rd-tax-incentive

name	tax-lawyer-au-rd-tax-incentive
description	Australian R&D Tax Incentive (RDTI) — ITAA 1997 Division 355. Covers eligibility criteria for core and supporting R&D activities, registration with AusIndustry/IP Australia, expenditure categories, offset rates, and the company size threshold test.
version	1.0.0
tags	["au","rd","tax-incentive","itaa1997","div355","ausindustry","offset","ato"]
tier	frontier
complexity	9
applies_to	["R&D Tax Incentive","RDTI","Division 355","AusIndustry","core R&D","supporting R&D","ITAA 1997","ATO R&D"]
output_types	[".json",".md"]
depends_on	["tax-lawyer-ufo-types","tax-lawyer-evidence-graph"]
unlocks	["ledgerr_tax_au_rd_*"]
metadata	{"ufo_stereotype":"Endurant","satisfies_constraint":"AuRdEligibility","legislation":["Income Tax Assessment Act 1997 (ITAA 1997) Div 355","Industry Research and Development Act 1986 s 27A-27J","Corporations Act 2001 s 45A (small proprietary company threshold)"],"iso_types":["ISO 17442 (LEI)"]}

AU R&D Tax Incentive — Overview

:citation: ITAA 1997 Division 355; Industry Research and Development Act 1986

Two-tier tax offset for R&D conducted in Australia by eligible entities:

Turnover	Offset Rate	Type
< AUD 20M	43.5% refundable	Cash refund if tax loss
≥ AUD 20M	38.5% non-refundable	Reduces tax payable

Program run jointly by ATO + IP Australia/AusIndustry. Registration: via Industry Research and Development portal (RDTI online portal).

Eligible Entity Test

:citation: ITAA 1997 s 355-35

An entity is eligible if it is:

• A company incorporated under Corporations Act 2001 (Australian or foreign with PE in AU), OR
• A corporate limited partnership, OR
• A public trading trust

NOT eligible:

• Sole traders, individuals, partnerships (non-corporate)
• Tax-exempt entities
• Entities exempt under special rules

Satisfies checklist:

• Incorporated company (or CLP/PTT)
• Not tax-exempt under ITAA 1997 s 50-1
• Has a valid LEI (for large entity claims)

Core R&D Activity Test

:citation: ITAA 1997 s 355-25(1)

A core R&D activity MUST:

1. Experimental activities — involve systematic progression of work based on principles of established science/technology
2. New knowledge — conducted for the purpose of generating new knowledge (including new knowledge in the form of new/improved materials, products, devices, processes or services)
3. Outcome not known — the outcome cannot be known or determined in advance (genuine uncertainty)
4. Hypothesis test — activities undertaken to evaluate a hypothesis, generate results, or test a design or model

What is NOT a core R&D activity:

:citation: ITAA 1997 s 355-25(2)

• Market research, market testing
• Pre-production activities (trial production, tooling, commercial production)
• Prospecting, exploration, drilling for minerals/petroleum
• Developing/maintaining computer software for internal administration
• Acquiring another entity's R&D results
• Creating artistic works

Satisfies evidence pattern:

EvidenceNode {
  type: Claim,
  body: "Activity 'X' involves systematic experimentation to generate new knowledge in domain Y",
  citation: "ITAA 1997 s 355-25(1)(a)",
}
EvidenceNode {
  type: Claim,
  body: "Outcome not determinable in advance — genuine technical uncertainty exists",
  citation: "ITAA 1997 s 355-25(1)(b)",
}

Supporting R&D Activity Test

:citation: ITAA 1997 s 355-30(1)

A supporting R&D activity is one that:

• Is directly related to, and supports, a core R&D activity
• Would be included in the R&D program

Supporting activities can include:

• Production runs to test experimental hypotheses
• Collection of data directly supporting core activity
• Maintenance of specialized equipment used for core activity

100% test for support activities:

If a supporting activity could be conducted independently without the core R&D activity, it FAILS the supporting activity test.

Expenditure Categories

:citation: ITAA 1997 s 355-45 to 355-105

Category	Deduction Basis	Common Examples
Employee labour	100% of time on R&D	Researcher salaries, direct overheads
Contractor labour	100% of contracted amount	External R&D contractors
Materials	100% used/transformed in R&D	Chemicals, components
Plant operating costs	Apportioned % R&D use	Lab equipment, computers
Feedstock input	Feedstock formula	Raw materials partially converted

Exclusions from R&D expenditure:

• Interest expenses
• Core technology (existing IP incorporated into R&D)
• Amounts paid to associates at non-arm's length prices (must use arm's length amount)

Registration Requirements

:citation: Industry Research and Development Act 1986 s 27J

• Register via AusIndustry RDTI Online portal
• Registration deadline: 10 months after end of income year (for 30 June year end: deadline = 30 April following year)
• Must describe: activity name, description, field of science, expected outcomes
• Late registration: possible application to Commissioner (discretion)

Advance Finding (optional)

Companies can seek an advance finding from IP Australia before incurring expenditure:

• Binding determination on whether activities are core/supporting R&D
• Valid for 3 income years
• Fee: AUD ~6,000–15,000 depending on complexity

AuRdActivity Struct (Rust domain model)

pub struct AuRdActivity {
    pub ufo: UfoCategory,                    // Endurant
    pub ufo_kind: EndurantStereotype,        // Kind
    pub lei: String,                         // ISO 17442 LEI of claimant
    pub activity_id: Uuid,
    pub activity_name: String,
    pub field_of_science: String,            // ANZSRC Field of Research code
    pub start_year: u32,                     // income year start
    pub end_year: u32,                       // income year end
    pub domain: RdDomain,
    pub activity_type: RdActivityType,       // Core | Supporting
    pub registration_date: Option<NaiveDate>,
    pub advance_finding: Option<AdvanceFinding>,
}

pub enum RdActivityType { Core, Supporting }
pub enum RdDomain {
    SoftwareEngineering, Biotechnology, Chemistry,
    Materials, Aerospace, Other(String)
}

b00t:map v1

summary: ITAA 1997 Div 355 R&D Tax Incentive — eligibility, expenditure, registration

tags: au, rd, tax-incentive, itaa1997, div355, ausindustry, ato

tier: frontier

complexity: 9