R&D Tax Incentive correction

In the February and March editions we shared details of the new opportunity around FY2025 tax offsets for some levy-funded projects, following Hort Innovation’s registration as a Research Service Provider for that financial year.

Hort Innovation has recently advised of a correction to R&D Tax eligible levy rate information that was previously provided in respect of the Olive Fund.

A review of the analysis process has identified that the levy rate originally communicated (41%) was lower than that actually applicable, due to a calculation error during the preparation of the information. As per the table below, the corrected levy rate is 49.1%.

The corrected rate may result in a higher amount of eligible R&D expenditure being attributable to levies paid for the 2024-25 period. You may therefore wish to contact your tax agent or adviser to consider whether this updated information gives rise to a potential additional R&D Tax Incentive entitlement.

Note: Given the deadline for claims of 30 April, and that engaging a tax agent/adviser to submit a revised claim using the corrected rate will incur additional expenses for levy payers, the AOA has requested confirmation from Hort Innovation as to whether the ATO will accept late, revised R&D Tax Incentive claims. We’ll update in the next edition of Grove Innovation.

Hort Innovation apologises for any inconvenience caused. Levy payers with any questions or requiring further information can contact [email protected]

Background information

The original article on levy-funded R&D eligibility for the FY2025 R&D Tax Incentive, explaining the claim process and with links to industry-specific resources to assist with applications, can be found here.

This communication does not constitute financial, taxation or legal advice. Hort Innovation does not provide application services. Obtaining independent advice from qualified financial or professional advisors is strongly recommended.