News and Research

On the 15th of October 2015, The ATO has alerted taxpayers against accessing the R&D tax incentive for ineligible broadacre farming activities.

According to TA 2015/3, the ATO and AusIndustry are revising provisions where chief producers engaged in broadacre farming are claiming the R&D Tax Incentive for the cost of fertilisers and soil improvers where a significant part (or all) of the expenditure that is acquired relates to “business as usual” farming activities and not to R&D activities.

Hence, The ATO and AusIndustry have communicated to individuals who may have entered into this type of arrangement. Furthermore, as a result of these findings, they will monitor registrations for undertakings that are analogous to those described in TA 2015/3 and will conduct compliance activities where needed.

In Australia, broadacre is land suitable for farms practicing large-scale crop operations. The key crop segments in this category are as follows, canola seeds, sunflowers seeds, wheat, barley, oats, triticale, sorghum, maize, and millets. Therefore, if you think you may be involved in these activities and  want to know how it will affect your claims under the R&D tax incentive, contact us today for more information.