RDTI transition support for former Growth Grant recipients

Overview and key updates

An RDTI transition support payment for former Growth Grant recipients was announced by Hon Dr Megan Woods (Minister of Research, Science and Innovation) at the end of April 2021. Callaghan Innovation is delivering the transition support payment in partnership with Inland Revenue and MBIE.

This section of the RDTI Hub provides former Growth Grant recipients with answers to frequently-asked questions about the transition support payment. If you’d like to discuss your eligibility or have further questions, please email rdtihelp@callaghaninnovation.govt.nz to make an appointment with one of our Customer Engagement Specialists.

All former Growth Grant businesses who may be eligible for the RDTI transition support payment were sent email notifications about the payment announcement in April 2021. Online applications opened on 30 August 2021 for a small number of businesses who may qualify to apply for the RDTI and transition support payment for the 2019/2020 income year. The team at Callaghan Innovation have already made contact with these businesses and will be assisting them with their applications. This group will have until the end of June 2022 to apply for the transition support payment.

For the majority of former Growth Grant recipients who will be making their first RDTI application for the 2020/2021 and/or 2021/2022 income years, transition support payment application opening dates are as follows:

• For the 2020/2021 income year – applications will open in late November 2021 and will close in October 2022*.
  
• For the 2021/2022 income year – applications will open no earlier than 7 February 2022 and will close in April 2024*.
  

The application process has been developed in accordance with a Ministerial Direction approved by the Minister of Research, Science and Innovation, Hon Megan Woods, in early July 2021.

What information is covered by the Ministerial Direction (July 2021)?

Some details have changed since the RDTI transition support payment was first announced in April 2021. These changes are the result of discussions between MBIE, Inland Revenue and Callaghan Innovation, and take into account feedback from several groups of key stakeholders.

The main changes are:

• The requirement for businesses to participate in the RDTI is now more explicit. This change better reflects the purpose of the transition support payment – which is to support former Growth Grant customers to maintain their investment in research and development (R&D) while they move to the R&D Tax Incentive (RDTI).
  

• There is further clarification about exactly which former Growth Grant recipients are eligible for the transition support payment.
  

• The approved formula for calculating the transition support payment has been amended in line with the policy objectives to ensure it is a supplement to a business’s entitlement under the RDTI:
  

• The transition support payment is now based on a business's Growth Grant eligible R&D expenditure amount, rather than on the Growth Grant payment amount.
  
• The period for calculating the '3-year average' has changed, and now refers to the 3 income years immediately preceding the year in which a business applies for funding (rather than the last 3 years before it entered the RDTI).
  
• Details have also been confirmed about what should happen in cases where businesses did not receive a Growth Grant payment in one or more of the 3 preceding income years.
  

What does my business need to do at this stage?

If your business may be eligible for an RDTI transition support payment, you will be contacted by a Callaghan Innovation relationship manager who will offer to assist you in preparing your application. You will be contacted when we expect your business will need to start preparing your RDTI application. You will be given plenty of time to apply. Find out more.

In the meantime, all former Growth Grant customers are encouraged to read the information in this section of the RDTI Hub for current details about the transition support payment. Further updates will be added here, as they become available. If you have any questions, please contact your Callaghan Innovation relationship manager or email rdtihelp@callaghaninnovation.govt.nz.