History of the R&D Tax Incentive and Nifty Grants
The current R&D Tax Incentive has been supporting Australian companies to build innovative capabilities and create jobs in Australia since it succeeded the R&D Tax Concession in 2012. Over time, the regulators (AusIndustry and the ATO) have begun to undertake closer scrutiny of the increasing number and value of claims for what is one of Australia’s most generous incentive programs.
PwC has been completing R&D Tax Incentive claims for big businesses for many years and Nifty Grants has been enabling the same for small companies and startups since 2014. In this time, we have had to respond to the increased attention and scrutiny from the regulators - meaning changes to how we work with you and our reviewing processes.
Increased scrutiny from the regulators
Since the release of the R&D Tax Incentive review (April 2016), we have seen increased review activity in multiple sectors and across all claim sizes from both AusIndustry and the Australian Taxation Office (ATO). This has most recently been highlighted by the Federal budget proposals which are to be considered shortly by Parliament.
Pivoting to meet the changing regulatory environment
In the early years, Nifty Grants provided a simple to use DIY R&D claim service which had low-touch interactions between customers and our specialists. In the best interests of our customers, we have had to pivot from this low-touch model to being closer to you, your business and your R&D activities to ensure that we can support you and provide you with a claim that is aligned to the expectations of the regulators.
Our team of R&D Tax Specialists know that more time is required to get a claim right under the current regulatory environment. In order to provide the appropriate people and time required to review and complete a claim to the standards expected, we need to charge an appropriate service fee. For smaller claims we have not been able to cover the cost of providing the right level of service so we have to change our fee structure accordingly and introduce a higher minimum fee bracket.
Our fees are competitive against other R&D service providers, so we expect that you will still find them good value for the benefit we enable and the service that we provide.
Explanation of our new service model
The aim of our new pricing structure is to reflect the new model of service we’re providing:
- Being more hands on - providing more support and feedback throughout the claim process
- Getting stuck into the detail - resolving the detail and intricacies of your business and R&D activities
- Dedicated more time - ensuring that you get the exceptional service that you’d expect from PwC’s Nifty Grants
Explanation of our new pricing structure
We maintain our brand promise of transparency so our new pricing will continue to be a fixed fee, based on eligible R&D expenditure to reflect our minimum viable effort to complete your claim to the necessary standards.
The new prices effective for processing claims with a year ending 30 June 2018 onwards are:
Tier R&D spend bracket Service fee (plus GST)
1 $20,000 - $199,999 $5,000
2 $200,000 - $299,999 $7,000
3 $300,000 - $399,999 $9,000
4 $400,000 - $499,999 $11,000
For claims above $500,000 expenditure, please contact us to discuss the best service option.
With Nifty Grants, you will get the range of great benefits including upfront pricing, transparency of your claim process and access to trusted PwC knowledge and expertise.
Add-on services and associated fees
In addition to the flat fees, we have the following add ons:
- Write My Claim - $3,000 (plus GST)
- R&D Assist - $300 (plus GST)
- Complexity surcharge - $1,000 (plus GST)
Need more information?
Take a read of the following articles:
- I started an FY18 claim with the assumption that I’d be paying the old pricing - what happens now?
- In the past I’ve paid a lower price for an R&D claim - what’s changed?
- I used Nifty Grants to claim R&D Tax in the last few months - what’s changed?
Alternatively, leave us a message, with complete detail of your question, in the Ask for help box in bottom right of your screen and we'll be in touch.