An Advance Finding is a formal decision by Industry Innovation and Science Australia (AusIndustry) that certifies the eligibility of planned Research and Development (R&D) activities for claiming under the R&D Tax Incentive.
What is an Advance Finding?
If R&D claimants seek certainty about the eligibility of their R&D activities before registering, they can apply for an Advance Finding. A positive Advance Finding assures claimants that their registered R&D activities will be eligible for claiming under the R&D Tax Incentive.
R&D claimants must submit their Advance Finding application before the end of the income year in which they conduct or plan to conduct the activity. Late applications or extensions of time are not accepted under any circumstances.
What Can You Request an Advance Finding For?
- Activities conducted in your current income year, whether started or completed in that year
- Activities planned for the subsequent 2 income years
The Finding Process
When you apply, AusIndustry assesses the provided information to determine if it demonstrates how your activities meet the definition of eligible core or supporting R&D activities. Examples of information you may provide include:
- Self-assessment details of your activities
- Records detailing how you plan, conduct, and evaluate your experiments
AusIndustry can make four possible findings on your activities: Eligible, Ineligible, Partially eligible, or it may refuse to make a finding.
Finding Certificate and ATO Notification
AusIndustry provides a finding certificate for all instances where a finding is made, which is then copied to the ATO. If AusIndustry refuses to make a finding, no certificate will be supplied.
Advance Finding vs. Registration
Importantly, a finding is not a registration. While applying for an Advance Finding means you still need to register your R&D activities separately, having an Advance Finding is also not a prerequisite for applying for the R&D Tax Incentive — it is simply a way to obtain early certainty about eligibility.
Source: business.gov.au — Advance Finding
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