COVID-19: Seizing the opportunity to Scaleup and grow your business
10 July 2020
Original content provided by BDO Australia
The impacts of COVID-19 have meant that many WA businesses have needed to rethink their approach and adapt to this new normal. Yet, the pandemic hasn’t always had a negative effect.
Whilst many companies have been hit hard, we are seeing tech businesses thrive in the new COVID era. Technology and Scaleup businesses are typically well technology-enabled so are well prepared to weather the turbulence. Indeed those related to health, Virtual Reality and video technologies are seeing an increase in demand.
We’re currently working with several Scaleup businesses that have recently successfully raised funds and are underway with their business expansion plans. These businesses haven’t historically been overly dependent on revenue and there is still money out there for capital raising purposes.
During periods of change, it’s more important than ever for growing businesses to ensure that they are accessing all available tax rebates. Another ESIC (Early Stage Innovation Company) year is about to draw to a close and it is becoming more common for investors to access the 20% tax rebate and 10-year capital gains tax (CGT) holiday on their investment.
We also see that Scaleup businesses are diversifying into new markets through the development of new products and services, while others are looking at ways to improve the efficiencies of current operations. The Research and Development (R&D) Tax Incentive can support organisations undertaking eligible R&D activities through such endeavours, including in respect of expenditure already incurred.
Due to the impacts of coronavirus the R&D Tax Incentive deadline for has been extended to 30 September 2020 (previously 30 April 2020). R&D concessions must be dealt with appropriately for the 2020 financial year, not only to ensure cash is maximised from these R&D concessions but so that the R&D related points are secured to also gain ESIC status.
These rebates are particularly relevant for Technology and Scaleup businesses to help them succeed as they adapt to the new COVID-19 environment. BDO can advise on which incentives are available for your business and help you access the ESIC rebate and R&D incentives. We also assist clients gain funding for their future R&D through accessing government grants.
Contact your local advisor to discover which rebates you can access, and how BDO can help your business Scaleup and grow using our Start to Scale framework.