You will already know that Australia has a selection of excellent CROs which offer a world class level of service. We are an English speaking country with a stable economy and the current exchange rate differential may further incentivise you to do business here. However, you may or may not have heard that Australia has a beneficial Research and Development (R&D) incentive. Under certain circumstances, the program will give your business a cash refund of 43.5% of your R&D expenses. So, spend A$1million on R&D and the Australian Government will refund you A$435,000.
The program runs through the Australian tax system, so, unless you are an international tax expert, it can be daunting to understand if you are eligible to be in the program, and if so, how to navigate the program.
A simple eligibility checklist is highlighted below:
Our initial call would include a comprehensive eligibility discussion. There is no charge for this assessment. We would ask for an hour of your time on a call to make an initial assessment of eligibility and also explain the steps, costs and benefits of the process.
From there, we will require some financial and factual information regarding your company and the drug, device, or treatment being developed. We will undertake the work to:
• Set up an Australian entity
• Fulfil the requirements of the Australian regulatory bodies
• Introduce you to some Australian resident Directors
• Prepare a commercial rationale analysis and report to address and document Australian tax risk
• Prepare intercompany or legal agreements in conjunction with legal advisors
• Prepare your R&D tax incentive claim
• Instruct your Australian tax accountants in preparing your Australian company income tax return
We would ask you to review and sign our outputs.
Over the course of our work we would expect your time spent gathering information and reviewing documentation to be 2 to 3 working days. In return for potentially getting 43.5% of your R&D expenses refunded, that could be a very good deal for your business.
Please contact Glasshouse Advisory if you have any questions or would like to hear more about how we can help you gain access to this lucrative program.