MINING
Mining
Mining is something of a special case when it comes to the RDTI: there are specific mentions in the legislation excluding mineral exploration from R&D. If you are conducting research into new methods of exploration that represent genuine new knowledge, then the whole game changes.
The ATO and the Department of Industry, Science, Energy and Resources have observed issues with R&D tax incentive claims made by mining companies where:
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The scope of the R&D activities in the context of extracting minerals is not clearly identified and why it is R&D, where activities in R&D projects are too broad there is an increased risk of over-claim of costs.
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Activities relating to modelling of mines are not R&D unless it is associated with a physical experiment. A feasibility study does not necessarily mean that R&D has or will occur.
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Claimants need to explain the technical challenges and how they overcome them using simple terminology.
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Exploration activities are specifically excluded from being a core R&D activity.
Talk to us about how your R&D in the mining sector can be eligible for the R&D Tax Incentive.
Your R&D Certainty industry consultant is Paul