Frustrated by the time lag baked into Australia’s research and development (R&D) tax refund mechanism, companies and researchers are looking for alternatives, so they can keep innovating and leading in their industries. That’s why Radium Capital’s Radium Advance has become the go-to option for some of the 13,000 companies that apply for the Government R&D tax refund each year.
How to qualify
While innovation businesses and their supporters welcome the R&D tax incentive (RDTI), waiting for the annual capital injection, the tax refund offers, is causing many companies with R&D serious, cash-flow problems.
That’s where a Radium Advance comes in. It’s the ideal solution because it speeds up your access to your R&D refund by letting your business access it early. But how do you know if your business is eligible?
Here’s what you need to apply for a Radium Advance.
AusIndustry registration
The first step is to make sure you register your company’s R&D program with AusIndustry. Doing this will make your business eligible to apply for the R&D tax refund, which is a 43.5% refundable tax offset on every dollar you spend on R&D. You can register your R&D and apply for the RDTI if your business meets these criteria:
- an annual aggregated turnover of less than $20 million
- an annual R&D spend of more than $20,000
Zero outstanding tax liability
The amount Radium Capital will loan your organisation as a Radium Advance correlates to the tax refund amount you expect to receive. So your accountant needs to confirm your company does not have an outstanding tax liability which could affect the value of your refund.
Ensure your business qualifies for the R&D tax refund
Make sure your R&D activities meet the strict eligibility criteria set out by the Australian Government. Your research must be either core R&D activities (based on the principles of science), use proper scientific methods and create new knowledge), or be supporting R&D activities, undertaken to advance core R&D. You can find out more information on the RDTI on the business.gov website. The good news is that if your business is eligible for the tax refund, then you’re eligible to apply for a Radium Advance.
Work with a Radium-approved accountancy firm
Radium works with a network of experienced, qualified accountancy firms. To qualify for a Radium Advance, you must engage a Radium-approved accounting firm to calculate your eligible R&D tax refund for the quarter.
Agree to pay your refund directly to Radium
And finally, you must be willing to instruct your registered tax agent to pay your R&D refund directly to Radium once it arrives. Your refund pays down the Radium Advance, arrangement fee and interest accrued. Radium Capital then transfers the remainder of the refund to you.
The advantages of a Radium Advance
There are a few things to organise to qualify and apply for a Radium Advance. But the potential advantages can be life-changing. Don’t wait up to 18 months for a tax refund. Access your funds three business days after you sign your loan documents, and get on with your research.
While many smaller companies with R&D programs use Radium Advances, any company or research project eligible for the RDTI can apply. If your R&D program could benefit from a Radium Advance, call us on 1800 723 486 or email us to find out how to apply.