150%
Percentage of qualifying expenditure eligible for R&D Tax Incentive
2/2
Both projects were approved unlocking a 150% tax deduction on R&D costs
Background
RedSun Hortitech (“RedSun”) is a multi-accredited nursery that produces in excess of 800,000 trees per annum for domestic and export farmers. They are industry leaders in nursery tree production innovation, quality and proactive farmer support to ensure in-field success. They are currently undertaking a systematic process of research and investigation in an effort to breed improved genetic macadamia and avocado varieties.
01 The Challenge
The ongoing work at RedSun is predominantly focused on innovation and R&D-related activities. While RedSun were aware that they might be entitled to R&D grants and incentives, they were unsure of how to capitalise on this opportunity and navigate the process. What’s more, it is extremely difficult to distinguish the R&D being undertaken in the agricultural sphere in such a way that it is differentiated from ordinary farming or nurseries. They thus wanted to understand what they would qualify for as well as how to maximise claims through an expert-led, detailed assessment of their activities.
02 The Solution
Through close collaboration with the RedSun team, Catalyst Solutions helped prepare the necessary technical motivations for the ‘Macadamia Improvement Program’ and the ‘Avocado Improvement Program’. The Catalyst team also guided RedSun through the various challenges and bottlenecks associated with submitting the application. The R&D Tax Incentive applications have already been submitted and approved, unlocking a 150% tax deduction. This supercharged tax deduction will reduce RedSun’s tax bill going forward and the improved resulting cash flow will be channeled into speeding up and expanding the amount of R&D being undertaken.
