Exploring the data from the R&D Tax Incentives Transparency Report
In an effort to promote accountability and enhance tax transparency, on 3 October 2024, the Australian Taxation Office (ATO) released its first report on research and development (R&D) expenditure data in Australia. This initiative has generated significant interest and discussion within the Australian business community.
At RSM Australia, we always look for opportunities, even in challenging situations. That is why we've proactively analysed the data from the ATO’s research and development tax incentive (RDTI) transparency report. Drawing on the expertise of our experienced data analytics team and in-house economist, our goal is to provide businesses with valuable, data-driven insights into R&D activities across industries and locations. Inside this report, you will find fresh insights into R&D trends for each industry, helping you strategically position yourself for future growth.
How can this data benefit you?
- Industry trends: Gain a comprehensive understanding of which industries are leading in R&D activity and investment.
Benchmarking: Compare your RDTI claims with industry peers to assess your relative standing.
Strategic planning: Identify high-growth industries and regions with elevated R&D activity, potentially revealing new opportunities for investment or collaboration.
Our approach to analysing the RDTI transparency data
This report incorporates advanced data analytics techniques, including the use of generative artificial intelligence (AI), to provide meaningful insight into R&D activities in Australia.
The analysis provided by the ATO showed that 43% of all RDTI claims are in the Professional, Scientific, and Technical Services industry. We found this grouping to be too broad, so we reclassified the Australian and New Zealand Standard Industrial Classification (ANZSIC) codes into more specific RSM categories to gain more meaningful insights.
To classify all 11,545 companies individually, we used generative AI. This involved analysing each company’s primary activity, matching it to a Business Industry Code (BIC), and mapping that to an ANZSIC code. We then applied our own industry labels to ensure each group accurately reflects the work being done. We have also sourced the primary business location data of each company from the Australian Business Register and mapped each postcode location to a ‘Capital City’, ‘City’, or ‘Regional’ classification to provide an additional dimension of insight.
For more detailed insights into our methodology and data analytics capabilities, please contact our data analytics team. They can provide detailed insights into our approach and offer more comprehensive analysis tailored to your specific needs.
Our data analytics team will be performing deeper analysis to uncover further insights. Data tells a story, and we hope you will stay tuned for future chapters.
DOWNLOAD THE REPORT.
Exploring the R&D Tax Incentives Transparency Report:
Our analysis of the ATO's first R&D Tax Incentives Transparency Report provides businesses with insights to identify trends, benchmark performance, and uncover growth opportunities for strategic advantage.
OUR RTDI SPECIALISTS
Jessica Olivier
Jessica Olivier is a National Executive, and a Partner of the Tax Services division in Sydney.
Since 2006, Jess has specialised in providing R&D tax incentive compliance and consulting services, working with a wide range of industries.
Dr Rita Choueiri
Dr Rita Choueiri is a Partner in the Tax Division, based in the Melbourne office.
Rita draws on her significant STEM background and experience to provide specialist R&D tax incentive compliance and consulting services. She frequently works with fellow scientists or engineers to develop a deep understanding of their projects and to help companies align their research activities with RDTI requirements.
Peter Xi
Peter Xi is a Partner in the Tax Division, based in the Sydney office.
Peter provides specialist R&D tax incentive compliance solutions in English and Mandarin for businesses ranging from start-ups and SMEs to multinationals, both local and inbound. Some of the key industries that Peter’s clients operate in include technology, construction and engineering, manufacturing and consumer products.
Simon Harcombe
Simon Harcombe is a Director in the Tax Division, based in the Perth office.
With a career spanning over 15 years, Simon has provided R&D tax advice to a range of industries across Australia including resources, technology and biotechnology.
Winnie Deng
Winnie is a Director in our Sydney Tax Advisory division.
She assists clients across diverse industries in maximising their R&D tax incentives claims. Winnie excels in identifying qualifying activities and meticulously documenting their technical and financial details.
Bryan Soepardi
Bryan is a Director in the Sydney Tax Advisory division.
Bryan has a future-focused approach to tax, with significant experience in supporting clients to design and implement processes and procedures to help them maximise RDTI opportunities and substantiate their claims.
OUR DATA ANALYTICS TEAM
Matthew Cunneen
Matthew Cunneen is a Director of Data and Analytics.
Matthew has been designing and developing leading technology solutions for international corporations since 1989. For over 15 years, he has concentrated primarily on business intelligence and data, going from running his own very successful small business to leading a dynamic team at the fast-growing Decision Inc. Australia, and is now a Director at RSM.
Eric Tian
Eric Tian is a Data Analyst.….
Eric graduated from Macquarie University with a double degree in Commerce, majoring in Business Analytics, and in Information Technology, majoring in Data Science. Since joining RSM, Eric has worked on numerous complex projects, leveraging his expertise in data visualisation, data analysis and predictive analytics.
OUR RSM ECONOMIST
Devika Shivadekar
Devika Shivadekar is an Economist for RSM Australia based in our Sydney office.
As our expert economist, Devika loves to share her knowledge with our clients. She has a wealth of experience in macro-economic and financial research, spanning both public and private sectors, and a deep understanding of the APAC region.
CONTACT OUR RDTI AND
DATA ANALYTICS PROFESSIONALS
If you wish to discuss the information in this report, please complete the form below and we will get in touch with you shortly.
CONTACT OUR RDTI AND
DATA ANALYTICS PROFESSIONALS
If you wish to discuss the information in this report, please complete the form below and we will get in touch with you shortly.
CONTACT OUR RDTI AND
DATA ANALYTICS PROFESSIONALS
If you wish to discuss the information in this report, please complete the form below and we will get in touch with you shortly.