R&D Tax Reviews & Audits

Expert R&D Reviews & Audit Support Services

At prmpt., we provide expert review and audit support services to protect your business and ensure compliance. If your previously lodged R&D claim is selected for review, we assist in validating the claimed activities and conducting a detailed analysis of the associated expenditure. Our experienced consultants work closely with you to provide the necessary documentation, evaluate apportionment methodologies, address queries, and ensure the review or audit is completed promptly and with a positive outcome.

Why Is Professional Support Critical for R&D Reviews and Audits?

A failed R&D audit or review can have serious consequences, including serious penalties of up to 50% imposed on company directors, repayment of R&D benefits, and backdated interest. Such outcomes can have a detrimental impact on your company’s financial stability, reputation and ability to continue trading. By partnering with prmpt., you gain access to a team of experienced R&D consultants who understand the complexities of the R&D Tax Incentive and how to navigate audits with precision.

How prmpt. Can Help

Validation of activities - We ensure your R&D activities align with the eligibility criteria outlined by AusIndustry and the ATO.
Detailed expenditure analysis - Our team reviews all associated expenditure, verifying that expenses are properly allocated and substantiated with an appropriate apportionment methodology.
Comprehensive documentation - We assist in preparing audit-ready records to demonstrate the compliance and validity of your claim.
Timely completion - Our proactive approach ensures the review or audit process is completed efficiently, minimising disruption to your business.
Expert representation - We liaise with AusIndustry and the ATO on your behalf, addressing their concerns and advocating for your claim for a positive outcome.

Why Choose prmpt. for Reviews & Audits?

Deep expertise - Our consultants have years of experience navigating complex R&D documentation required for a successful R&D audit.
Proactive risk management - We identify and mitigate risks to help you avoid adverse outcomes.
Tailored support - Every business is different, and we adapt our approach to meet your specific needs.
Peace of mind - With prmpt. managing your review or audit, you can focus on your business while we handle the complexities.

Navigating an R&D audit or review requires a meticulous approach and a deep understanding of compliance requirements. With prmpt. by your side, you can be confident that your claim is validated, your documentation is thorough, and your business is protected from a negative determination. Partner with us to ensure a positive outcome and protect the financial benefits of your innovation efforts.

Our Process

1. R&D Discovery Call

Understanding your R&D potential and eligibility

Our process begins with a free, one-on-one consultation with one of our expert R&D consultants. During this initial call, we dive into your business operations, discussing your projects, innovation goals, and potential R&D activities and expenses. This is your chance to share details about the cutting-edge work you’re doing and ask any questions about the R&D Tax Incentive. By the end of this session, we’ll have a clear understanding of your business’s eligibility, allowing us to build a clear roadmap for your claim. Following this consultation, our team conducts a thorough internal review of your R&D activities, diving deeper into the details to ensure alignment with government eligibility criteria. This step combines expert consultation with meticulous background research, ensuring your business’s innovation efforts are accurately assessed and positioned for a compliant, maximised claim. By the end of this step, we’ll have a strong understanding of your eligibility and a clear plan to move forward.

2. Proposal/Letter of Engagement

Building a transparent partnership

Once R&D eligibility is reviewed and you are comfortable, we draft a comprehensive proposal and engagement letter for your review. This document outlines our services, pricing, and the scope of the work to ensure complete transparency. It also includes any terms required to formalise the agreement. Once approved, this step marks the official start of our partnership, allowing us to begin preparing your R&D claim with a shared understanding of expectations.

3. R&D Tax Incentive Application

Preparing an accurate and detailed submission

We work closely with your team during this phase to collect all necessary data and documentation required for your R&D application. Through in-depth consultations, we identify all qualifying activities, expenses, and innovations to ensure your claim is comprehensive. This collaborative process not only captures all eligible costs but also educates your team on R&D requirements, strengthening future claims. We ensure minimal disruption to your team members by only scheduling 1-2 in-depth meetings to collect the require information to prepare your detailed R&D application.

4. R&D Expenditure Verification & Allocation

Ensuring financial accuracy

Our team reviews your company’s financial data for the entire relevant financial year, verifying and allocating expenditure across your R&D projects. We meticulously apportion eligible costs and exclude ineligible expenses using specific apportionment methodologies accept by the Australian Taxation Office (ATO), ensuring compliance with the ATO and AusIndustry guidelines. This step safeguards the accuracy and integrity of your claim, setting you up for a successful outcome. We prepare your final R&D Tax Incentive application with precision, ensuring all supporting documentation is in place. Before submission, you’ll have the opportunity to review and approve the claim, giving you full confidence in the process. Once approved, we submit your application to AusIndustry, completing this key step with accuracy and attention to detail in a timely manner.

5. Company Tax Return Submission

Collaborating with Your Tax Accountants

Once your R&D registration number has been received from AusIndustry, we finalise your R&D Tax Incentive Schedule and work directly with your accountants to incorporate the claim into your company tax return. This ensures the financial benefits are reflected accurately in your submission to the ATO. By collaborating closely, we streamline this process and eliminate common errors and the need for extra effort from your end.

6. Refund/Offset Received

Securing your R&D benefit

The final step is delivering your R&D refund or tax offset. Once your claim is processed and approved, the refund is securely transferred to your nominated bank account. This ensures you receive your financial benefit quickly and efficiently, providing a valuable cashflow boost to support your next phase of innovation

Your questions answered

What is R&D?

The Research & Development (R&D) Tax Incentive is Australia’s single largest government incentive. Australian companies creating new and novel products or services can utilise R&D to claim back a proportion of their eligible expenditure as a cash refund or tax offset, including costs associated with R&D applications and efforts to secure R and D grants in Australia.

With a comprehensive strategy and the correct execution, the R&D Tax Incentive can provide cash flow and support to grow innovation within your company.

How much can I get from R&D?

Hypothetical Example <$20 million annual turnover

If your annual turnover is less than $20 million, you’re eligible to claim 43.5% on R&D expenditure as a cash refund.

Your company turnover is $3,000,000
You have $1,000,000 in eligible R&D expenditure
Therefore you will receive a refundable tax offset of $435,000 ($1,000,000*43.5%)

Hypothetical Example >$20 million annual turnover

If your annual turnover is greater than $20 million, you’re eligible to claim 38.5% on R&D expenditure as a tax offset.

Your company turnover is $22,000,000
You have $4,000,000 in eligible R&D expenditure
Therefore you will receive a non-refundable tax offset of $1,540,000 ($4,000,000*38.5%)

See our R&D Calculator

What does the R&D Tax Refund Calculator do?

Our R&D Tax Refund Calculator helps you estimate your potential R&D tax refund based on your company’s turnover and R&D expenditure, including costs related to R&D applications and R and D grants Australia. It provides a clearer picture of what financial benefits you might expect.

Is every business eligible for R&D tax incentives?

Not every business qualifies. Eligibility is determined by various factors, including the nature of your operations and the kind of research and innovation you’re undertaking. To easily check if you qualify, you can use our Eligibility Test.

Take our R&D Eligibility Test

Why do I need an R&D consultant?

R&D consultants can use their existing knowledge to effectively execute your R&D claim promptly
Lodge your claim with confidence that the activities meet the eligibility criteria and the proper due diligence has been performed
We have several years of experience in R&D across several industry sectors
Avoid distracting your internal team from their core work by having a team of experienced R&D consultants working on your claim in the background
De-risk losing company Intellectual Property (IP) that often sits with one employee and leaves the company when they do
Use our expert knowledge and advice to maximise your R&D benefit and achieve the highest level of compliance

How often should I consult with my R&D tax consultant?

It varies depending on your business needs. However, with prmpt., we typically engage in regular consultations, either fortnightly or monthly, to ensure a smooth process and that no R&D opportunity is missed.

Is R&D guaranteed?

Whilst R&D is a self-assessed program, it is not guaranteed from an audit/review by AusIndustry. Our job is to ensure your R&D application is eligible, that all costs are captured/maximised and that you have the supporting documentation to substantiate your claim.

Can prmpt. help with government grants beyond R&D?

Absolutely! Our consultants are always on the lookout for new grants suitable for your company. As these become available, we offer advice, application assistance, and management services in addition to R&D consulting.

How long does it take to process an R&D application?

Depending on how quickly we can obtain all the required information from yourself and your team, an R&D application can be processed by us in 2-3 weeks. Then allow for an additional 1-2 weeks for the R&D refund/offset to be issued by the ATO.

How much do you charge for your services?

As every client and their business is different in terms of size, requirements and work involved, our proposals are tailored to each client’s individual needs. Depending on if it is just an R&D application, government grant or both we can discuss fees for our services and a model that best suits your business.

Feel free to contact us for a quote.

What makes prmpt. different from its competitors?

We spend a considerable amount of time ensuring your R&D activities are compliant in relation to the latest guidance and tax legislation.
We educate your team by creating an R&D sensitive team culture, ensuring nothing is missed throughout the year, especially concerning R&D application and R and D grants.
We engage with you on a regular basis and complete the required work throughout the year as opposed to the traditional once a year catch up that is becoming more heavily scrutinised by the governing bodies. As soon as lodgement dates open we can submit your application to ensure a prompt submission of your tax refund/offset.
We maintain the highest level of compliance for your R&D.

Can you give any tips on R&D or government grants?

Sure!

Ensure you regularly record all R&D activities, develop supporting documentation and have a system for managing throughout the financial year. Don’t leave it to the last minute!
Get scientific! Ensure you develop a strong hypothesis and make it clear what you are aiming to achieve in your experiments using specifics.
Prove yourself! Research that the product, method or development you are creating does not already exist in the market and if it does explain why or how yours is different and developing new knowledge.
When it comes to government grants ensure you answer the question and follow the assessment criteria to the tee. Be concise, do not write emotional responses and only include information about the company/project that is relevant to the grant you are applying for. Having an outsider review your work with an unbiased, non-emotional perspective can increase your chances of success tenfold.

If you have completed a grant application and simply need a review and honest feedback, we can also offer this service. Speak with one of our consultants to learn more.

How do I proceed from here if I wish to engage prmpt.'s services?

We love working with entrepreneurs, inventors, CEOs, CFOs and R&D managers who are passionate about their R&D project. Your success is our success, and we’ll always endeavour to achieve the best outcomes for our clients in an efficient manner, hence why we call ourselves prmpt, especially when it comes to R&D applications and securing R and D grants Australia.

To get started, take our eligibility test.

R&D Tax Incentive Reviews & Audits