New RDTI guidance released on ‘Eligible R&D Activity’. Read more
Growth Grant transition support – Application process

RDTI transition support for former Growth Grant recipients

Update: August 2021
6

What are the steps to apply for the transition support payment?

This diagram shows the steps you will need to take in order to make an application.

1
Discuss RDTI eligibility with Callaghan Innovation
2
Apply for RDTI (see GA/CAM due dates)
3
GA/CAM approval decline letter received from Inland Revenue
*
This may occur multiple times in one income year
Yes
Approved?
No
If any GA/CAM is approved submit tax return and SR (find due dates)
All GA/CAM applications for the tax year are declined
*
4
‘R&D Tax Incentive: Transition Support Payment‘ letter received from Inland Revenue
*
5
Submit Transition Support Payment application
Transition Support Payment confirmation & contract received from Callaghan Innovation
6
Sign contract and return with Transition Support Payment invoice.
Money is paid into nominated account.
* For 2019/2020 RDTI applications, no GA/CAM is required – businesses will receive the RDTI approval/decline letter after submitting a tax return and supplementary return.
Legend
Lead government agency for this activity:
Green = Callaghan Innovation
Teal = Inland Revenue

1. Discuss your eligibility for the RDTI with Callaghan Innovation

First, it is highly recommended that you talk to Callaghan Innovation about your eligibility for the RDTI. Your Callaghan Innovation contact will be able to:

  • Explain the RDTI’s definition of R&D (as outlined in The Taxation Research and Development Tax Credits Act) and how this differs to the definition used for grants.
  • Explain how the RDTI is assessed on ‘core’ and ‘supporting’ R&D activities, rather than on a project basis, and help you to identify these activities within your own R&D.
  • Explain how R&D activity eligibility is assessed, and help you to understand how closely your particular R&D activities align with the eligibility requirements on the RDTI assessment scale.
  • Explain the RDTI application and assessment processes, and the timing in relation to income years.
  • Review draft General Approval applications and provide feedback.
  • Discuss what a Significant Performer is and provide advice on whether to apply for CAM (Criteria and Methodologies) approval instead of General Approval as part of your RDTI application.

It is important to note that the RDTI Engagement Specialists are independent of the RDTI Assessment Team. Therefore any discussions you have with them will not have any bearing on the assessment of your RDTI application by the RDTI Assessment Team, nor on Inland Revenue’s final decision on your RDTI claim.

To book an appointment, contact your Callaghan Innovation relationship manager or the RDTI Customer Engagement Specialist team (rdtihelp@callaghaninnovation.govt.nz).

2. Apply for the RDTI in myIR

You must enrol and complete an RDTI application so that Callaghan Innovation can calculate your transition support payment entitlement. Even if you believe none of your R&D expenditure will fit the RDTI eligibility criteria, you still need to complete an RDTI application.

Read the step-by-step information on the RDTI Hub about how to make an online RDTI claim in myIR.

It is important to note that the claim process for Year 1 of the RDTI scheme (the 2019/2020 income year) differs from the claim process and dates that apply for the following years (the 2020/2021 income year and beyond).

A General Approval (GA) or Criteria and Methodologies (CAM) submission is not required for Year 1 RDTI applications, but it is a requirement for all of the following years. Year 1 RDTI applicants will only be required to submit a Year 1 Supplementary Return (SR) and income tax return – Inland Revenue will advise whether the RDTI application is approved or declined based on this information.

There is also a different claim process if you elect to be recognised as an RDTI ‘Significant Performer’ – these are approved businesses that spend above $2 million on eligible R&D per year.

3. Submit your General Approval (GA) and/or Criteria and Methodologies (CAM) application(s)

If you are making an RDTI application for 2020/2021 and/or 2021/2022, you must submit at least one General Approval (GA) or Criteria and Methodologies (CAM) application via the online myIR portal for each relevant income year.

You can make more than one GA and/or CAM application in any one income year, so long as these are all submitted before your business’s GA/CAM application due date. Find your GA/CAM due date(s) in the Claims Date Finder.

4. Receive the ‘R&D Tax Incentive: Transition Support Payment’ letter from Inland Revenue

Businesses with an approved GA/CAM for that income year (even if partially approved) cannot submit an application for the transition support payment until their Supplementary Return (SR) has been submitted and finalised (after their income tax return has been filed). This is because the Supplementary Return is needed to determine the 'RDTI Eligible R&D Expenditure amount', which is used to calculate the transition support payment.

Once your Supplementary Return has been finalised, Inland Revenue will send you an ‘R&D Tax Incentive: Transition Support Payment’ letter.

Businesses with GA/CAM applications that have all been declined for that income year can apply for the transition support payment as soon as they have received their ‘R&D Tax Incentive: Transition Support Payment’ letter which confirms this final decision. In this case, they will not need to submit a Supplementary Return (SR).

Once your business's due date for GA/CAM applications has passed and the final decisions have been made for all of your GA/CAM applications for that income year, Inland Revenue will send you an ‘R&D Tax Incentive: Transition Support Payment’ letter.

5. Submit your transition support payment application

All online applications for the transition support payment must be made via Callaghan Innovation's IMS portal, for the relevant income year. Check here for the online application open dates.

The online application form requires you to supply the following information:

  • Your business and contact details (including your income year (balance) date and nominated bank account number),
  • Whether your business is applying for the RDTI as part of a consolidated tax group, and details about the business entities in that tax group,
  • Your Growth Grant Eligible R&D Expenditure figure (as per your directors’ attestation),
  • Your RDTI Eligible R&D Expenditure figure (as per your ‘RDTI: Transition Support Payment’ letter received from Inland Revenue),
  • The type of RDTI application(s) that you submitted for the relevant income year (i.e. whether a General Approval (GA), Criteria and Methodologies (CAM) or Supplementary Return (SR) application),
  • The final RDTI decision received from Inland Revenue,
  • A submission declaration.

You will need to upload Inland Revenue's ‘R&D Tax Incentive: Transition Support Payment’ letter, and provide a directors' attestation of eligible R&D expenditure at the time of application. View a copy of the directors’ attestation form.

6. Receive your transition support payment confirmation and payment

After Callaghan Innovation has processed your application, your business will receive a transition support payment confirmation letter and a contract for you to sign.

Once you have returned the countersigned the contract and invoiced Callaghan Innovation for the calculated transition support payment amount, the payment will be made into your business’s nominated bank account.

7

When does my business need to start the application process?

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.

Further details about the key dates for application can be found below. Please note that the majority of former Growth Grant customers will only be applying for the transition support payment for the 2021/2022 income year.

Apply for the 2019/2020 income year:

  • Callaghan Innovation estimates around 26 former Growth Grant recipients may be eligible to apply for the transition support payment for the 2019/2020 income year.
  • The first due date for your RDTI application will be when your Year 1 Supplementary Return (SR) application is due (after you have filed an income tax return). This date depends on your business’s balance date. Check the Claims Date Finder for details and for information about SR due date extensions.
  • Transition support payment applications will open in late August 2021 and close in June 2022.

Apply for the 2020/2021 income year:

  • Callaghan Innovation estimates around 50 former Growth Grant recipients may be eligible to apply for the transition support payment for the 2020/2021 income year.
  • The first due date for your RDTI application will be when your General Approval (GA) or Criteria and Methodologies (CAM) application is due. This date depends on your business’s balance date. Check the Claims Date Finder for details and for information about due date extensions.
  • Transition support payment applications will open in November 2021 and close in October 2022.

Apply for the 2021/2022 income year:

  • Callaghan Innovation estimates around 350 former Growth Grant recipients may be eligible to apply for the transition support payment for the 2021/2022 income year.
  • The first due date for your RDTI application will be when your General Approval (GA) or Criteria and Methodologies (CAM) application is due. This date depends on your business’s balance date. Check the Claims Date Finder for details.
  • Transition support payment applications will open no earlier than 7 February 2022 and close around April 2024.
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