In a recent update titled ‘R&D Tax Incentive: Future Focus,’ the Australian Taxation Office (ATO) emphasised its commitment to upholding the integrity and compliance of the R&D Tax Incentive.

Here is a concise breakdown of the ATO's announcement:

• The ATO is intensifying compliance efforts for the Research and Development Tax Incentive (R&DTI) program.
• Recent updates detail plans for random joint reviews in collaboration with the Department of Industry (AusIndustry) to ensure program integrity.
• These joint reviews will assess R&D claims simultaneously, focusing on enhancing transparency and pinpointing areas for improvement.
• Starting September 2024, an annual transparency report will be introduced.
• The report will feature entity names, identification numbers, and total deductions.
• Project details will remain confidential to protect sensitive information.
• Participants in the R&DTI program should anticipate heightened scrutiny.

What does this mean for you and your clients?

What we can gather from this announcement is that compliance and the integrity of R&D claims will be more critical than ever. Activity must be clearly substantiated with accurate and contemporaneous evidence, irrespective of past submissions.

While claiming an allocated amount of R&D time is the tip of the iceberg, the crucial question arises when reviewers delve under the surface: will they uncover compliant data?

We've also heard of scenarios where a client's audit failure prompts the ATO to scrutinise entire client bases, burying R&D Tax Consulting businesses under the weight of reviews and ultimately leading to them winding up.

So, the question to ask yourself is: “If my client with the weakest recordkeeping were audited, would they pass?"

Does your client's annual handover of retrospective evidence and estimated staff R&D time set you both up for a win?

How we can help!

We know that the ATO’s announcement my set off some anxiety, but we are here to help.

We designed Synnch specifically to support consultants in extracting compliant data as simply as possible, addressing the complexities associated with the R&D claim process.

Here are three ways Synnch can help you and your client streamline the compliance process and tackle the challenges mentioned earlier:

1. Simple Timesheet Solution

Synnch simplifies R&D time and activity tracking with a user-friendly timesheet solution, ensuring easy organisation and accurate documentation for your clients.

2. AI-Powered Record Extraction for Jira

Synnch uses AI technology for seamless extraction of records from R&D tickets in Jira, automating the process with just a few clicks, especially beneficial for software development clients and those

3. Efficient R&D Record Management

Synnch offers a centralised platform with standalone tools, enhancing collaboration and creating an organised workflow for managing your client's R&D records. This ensures easy access to compliant information.

If you would like to explore how Synnch can help you and your team, book quick demo with our team, we would love to support you this lodgement season.