Home Smart 100 2014 R&D Tax Incentive Prepayment Service (NSW) — 2014 SMART 100

R&D Tax Incentive Prepayment Service (NSW) — 2014 SMART 100

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This SMART 100 profile and the information it contains is a duplication of content submitted by the applicant during the entry process. As a function of entry, applicants were required to declare that all details are factually correct, do not infringe on another’s intellectual property and are not unlawful, threatening, defamatory, invasive of privacy, obscene, or otherwise objectionable. Some profiles have been edited for reasons of space and clarity.

1. THE BEGINNING

This innovation came to life when…

This innovation came to life when the new Federal Government decided against allowing eligible R&D companies to claim their R&D costs under the R&D Tax Incentive scheme on a quarterly basis through the BAS system.

2. WHAT & HOW

The purpose of this innovation is to…

The purpose of this innovation is to allow Australian-based R&D companies to receive the cash benefit they are entitled to receive under the R&D Tax Incentive in the year they undertake the R&D as opposed to waiting 12 months for claims to be lodged and processed.

It does this by…

It does this by using the R&D entities future R&D Tax Incentive benefit as security to drawdown against, i.e. by advancing the payment of the future benefit.

3. PURPOSE & BENEFITS

This innovation improves on what came before because…

All R&D entities are cash-poor when undertaking financial risk associated with technical risk; this prepayment service opens up and advances a future Government reimbursement when they most need it to advance and commercialise their new innovations faster.

Its various benefits to the customer/end-user include…

Earlier access to cash means less reliance on angel investors and faster time line to commercialisation.

4. COMPETITIVE LANDSCAPE

In the past, this problem was solved by…

This has never been done before in this space as financial institutes don’t understand the process, effect or have the ability to facilitate the activities that give rise to a compliant claim.

Its predecessors/competitors include…

Presently a R&D startup cannot go to the Bank for funding; they can however come to us and use their future R&D benefit as security for a advance.

5. TARGET MARKET

It is made for…

Any company in Australia who is undertaking eligible R&D as defined by the R&D Tax Incentive scheme who has an annual R&D aggregated turnover of less than $20m who is eligible to receive a refundable tax offset.

It is available for sale through…

It is only available by contacting me (Gerry Frittmann) or my business partner David Tonkin at TCF Services Pty Ltd.

Our marketing strategy is to…

As part of the launch of new website in late May, email marketing strategy to target market contained in our database, news articles, blogs, social media.

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