Glasshouse Advisory’s R&D Tax and EMDG practices have transferred to leading independent assurance, tax and advisory firm, Grant Thornton.
As a business owner, in the lead up to 30 June, there is often advice from accountants or advisors that you should pay any outstanding bills, or even prepay certain expenses before the end of financial year, in order to maximise your tax deductions. From an Export Market Development Grant (EMDG) perspective, this is good advice as leaving bills unpaid can have a significant adverse impact on the size of your claim.
Each grant year, one of the most common mistakes we see that leads to reduced claims is leaving eligible costs unpaid at the end of the financial year. Many clients aren’t aware that eligibility for EMDG costs runs on a cash basis so expenses paid after the end of the final year (EOFY) won’t be claimable even though they may have been incurred in the claim year. The result is a delay in the ability to claim these unpaid costs which have to be held over to the next grant year.
As the EMDG program runs on a cash basis, you will receive a 50c refund on each dollar that your business has paid by 30 June each year.
For example, in order to maximise your claim for the 2017 EMDG grant year, if you have:
Each dollar spent on eligible marketing and promotional activities before 30 June means you are eligible to recoup up to 50% of these costs (less the first $5,000 spent of course). This is up to a maximum of $150,000 per year. If you don’t pay for those costs before 30 June, you will have to wait another year to be able to claim these costs. In addition, you will be able to access this boost to cashflow even earlier if you lodge early. By being prepared and lodging your EMDG application before the November 30 deadline (or 28 February deadline if you lodge via an approved EMDG consultant), the assessment turnaround is about half the time compared to applications lodged close to the deadlines.
Still don’t have the time? That’s okay, we get it! Our Glasshouse Advisory EMDG consultants would be happy to visit your business twice a year, or as required, to assist in collation of the required information to put your business ahead of the queue come lodgement time.
Interested to know more about Glasshouse Advisory’s EMDG services? Contact us to discuss the best steps for your business this lodgement season.