Author: April Terzis

Tasty Tax Offsets

In an era of avocado toasts and craft beers, being average is not an option. Businesses in the food and beverage industry are constantly searching for ways to improve their current products and create new products eager to please our generation of ‘refined’ taste.

This applies particularly to alcohol- breweries and distilleries are popping up everywhere, and with peaking interest from the public, they aren’t going anywhere quickly. Innovation is prevalent in the liquor biz, from creating new flavours using a variety of ingredients to testing automated bottling or canning processes and everything in between. There is constant research and development, resulting in growth and recognition of local businesses for their unique products.

Making a start in the food and beverage industry can be a challenge, with many competitors in the market, a point of difference is key in taking you from local legend to nationally or even internationally renowned. Lack of funds can put a heavy strain on businesses spending their well-earned dollars on improving and innovating, to continue growth they need to ensure good cash flow, and what better way to do this than receive money back from the government for developing your own products.

If you’re reading this, chances are you know about the R&D Tax Incentive- if not, you need to. The R&D Tax Incentive is a government-based program offering businesses the opportunity to claim up to 43.5% of their expenditure spent on eligible research and development activities if you have an aggregated turnover of less than $20 million (and a minimum of $20,000 eligible expenditure). If your company has an aggregated turnover of more than $20 million and is an entity eligible to claim, your offset is non-refundable and up to 38.5%.

In order to claim the incentive, at least one ‘core activity’ must have been carried out during the year. The two key factors defining a ‘core R&D activity’ are of which the outcome could not be known in advance and are conducted for the purpose of generating new knowledge. If these are completed in a systematic fashion and contain experimental activities, they can be deemed R&D.

If you are conducting trials and testing to better improve your current product or innovating a new product, chances are you are already involved in R&D activities. Still unsure of how this applies to you and your brewery or distillery? Some examples of activities indicating R&D you could be conducting are as follows;

  • New or improved ingredient processing, malting or filtering methodologies
  • Testing of product ingredient combinations relative to new flavours or enhancements
  • Automating bottling or canning processes
  • Custom designed storage
  • Developing new or improved keg filling techniques, water recycling or waste management
  • Improving cold stabilisation techniques to reduce energy consumption
  • Large capital investments (e.g new storage, refrigeration)
  • Laboratory testing

This is a very short list compared to the scale of different R&D trials and testing you could already be doing without realising it could be eligible for the Tax Incentive.

So, next time you spend the money to modify some machinery to get that perfectly preservative-free pineapple flavour into your craft beer- think about the tasty tax offsets you could be claiming.

The schooner, the better.

For more information on the R&D Tax Incentive and your eligibility, you can contact us on [email protected] or 1300 941 908. Alternatively, try our eligibility survey at www.abalegalgroup.com.au/grants.

Pursuing Potential

ABA Legal Group Hero Banner - Grants - Bear

Some of the greatest ideas come about when you least expect it. When wondering how best to represent ABA Legal Group, Director Andrew Antonopoulos knew that the symbol of the bear truly grasped the value and purpose of ABA. In terms of design, the sleek line work represents simplicity and structure, a clear vision. With the angular style encompassing the strength and power of the bear, it was clear the logo was well aligned with everything ABA set out to achieve and become.

As it is family who knows us best, Andrew decided to consult an artistic family member to truly bring his vision to life- and so in Vancouver, Canada with a creative mind, ballpoint pen and a napkin, the branding so prevalent within the organisation today was created.

The bear is seen as a symbol of strength in the animal kingdom. The protector, the provider, the survivor. In hunting, he sees his target with a clear focus, through the trees and any obstacle that may be in his path and pursues it. ABA Legal group sees business from the same perspective, being agile in pursuing creative outcomes, courageous in endeavours and innovative in thinking to provide the best possible results for our team and our clients.

It is known that a predominate trait is the bear’s focus and perspective- unlike other predators who may be easily distracted from their goal. By focusing on a strong culture within our team (the root of our organisation) we can provide exceptional outcomes for our clients, who are the purpose behind what we do at ABA Legal Group.

The reason behind the bear’s choices and actions is family. He finds himself surrounded by those who embody the characteristics which give him strength, and in turn they become stronger together. Having a team that is agile in thinking, collaborative in approach, balanced in work & life and courageous enough to always pursue potential is at the core of our values at ABA. Our purpose is led by those around us and our team is not solely here to support one person, but to always support each other as a family.

You ask anyone to define themselves, and it’s perhaps one of the hardest questions to answer. What makes you who you are? What is your purpose? Everything starts with an idea, and from its inception you must ask yourself these questions to truly understand the direction your business will be going in. Once you’ve figured it out, trying to convey all of that into an image is something else entirely. You may consult designers or perhaps try to tackle the task yourself. Or in our case (unexpectedly), connecting the dots on a napkin is the best way to discover how to represent who you are.