Frustration with the gap in Australia’s research and development (R&D) tax refund 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-plus companies that qualify for the government’s R&D tax refund each year.
How to qualify?
While this incentive works well for the government, waiting for a funding injection from the tax refund each year can cause many businesses conducting R&D serious cash-flow problems.
Speeding up the refund with a Radium Advance, is an ideal solution. But, how do you know if your business qualifies?
It’s very simple. Here’s what you need to have in place in order to apply for a Radium Advance.
The Federal Government refunds companies 43.5 cents of every dollar spent on R&D registered with the Department of Industry, Innovation and Science’s AusIndustry program. So the first step is to make sure your company’s R&D program is registered with AusIndustry as qualifying for the R&D tax refund.
Zero outstanding tax liability
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 your business qualifies for the R&D tax refund
Make sure your R&D activities meet the strict eligibility criteria set down 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 on the RDTI here. 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. In order to qualify for a Radium Advance, you must have one of these Radium-approved accounting firms calculate your eligible R&D tax refund for the quarter.
Agree to pay your refund directly to Radium
And finally, to qualify for a Radium Advance 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 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 signing your loan documents and get on with your research.
While the primary market for Radium Advance is small companies with R&D programs, any company or research project eligible for the Federal Government’s tax refund 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.