DO I QUALIFY FOR RADIUM ADVANCE R&D FUNDING?
Frustration with the gap in Australia’s tax-return-based research and development funding mechanism means companies and researchers are looking for other ways to ensure they can continue to innovate and lead in their particular industries. As a result, Radium Capital’s Radium Advance has become a popular option for some of the 10,000 companies who access the R&D Tax Incentive each year.
While the Incentive works well for the government, waiting for a funding injection from their tax return each year can cause many researchers serious cash-flow problems. Getting an advance on that money, in the form of a Radium Advance, is an ideal solution. But, how do you know if you qualify?
It’s very simple. Here’s what you need to have in place in order to qualify for Radium’s R&D grant:
Be registered with AusIndustry
The Federal Government’s R&D Tax Incentive is the program that refunds companies 43.5c of every dollar spent under the R&D programs that have been registered with the Department of Industry, Innovation and Science’s AusIndustry program. So, the first step is to make sure you have your R&D program registered with AusIndustry as qualifying for the R&D Tax Incentive.
Have any outstanding tax paid
The amount Radium Capital will be willing to grant your organisation is directly related to the dollar amount you can expect in your tax return. Accordingly, you need to supply confirmation that your company does not have an outstanding tax liability, which might affect the value of your refund.
Ensure you qualify for the R&D Tax Incentive refund
Make sure your research and development activities meet the strict eligibility criteria set down for the R&D Tax Incentive by the Australian Government. Your research must be classified as either “core R&D” activities (based on principals of science, use proper scientific methods and must create new knowledge) or “supporting R&D” activities, undertaken to advance core R&D. You can find out more information here. It’s essential to qualify for the Incentive to qualify for a Radium Advance.
Work with a Radium-approved accountancy firm
Radium works with a network of experienced, qualified accountancy firms. In order to qualify for a Radium Advance, you must have one of these Radium-approved accounting firms calculate your eligible R&D Tax Incentive refund for the quarter.
Agree to pay your refund directly to Radium
And finally, to qualify for a Radium Advance R&D grant you must be willing to instruct your registered tax agent to pay the refund directly to Radium in order to discharge the advance. The remainder of the refund will, of course, be transferred to you by Radium Capital.
The advantages of a Radium Advance
So there are a few things to organise in order to qualify for a Radium Advance R&D grant but the potential advantages can be life-changing. Don’t wait up to a year and a half for a tax return. Access funds quickly (in less than a week) and get on with your research
While the primary market for Radium Advance is smaller companies that are doing incredible R&D but whose research is stretching their budgets and cash flow, any company or research project eligible for the Federal Government’s Tax Incentive can apply.
If you feel your R&D program could benefit from a Radium Advance, apply through our website.