Lol. Australian Government grants R&D “Advance Finding” for NRZ...

Lol. Australian Government grants R&D “Advance Finding” for NRZ Urea Project
• Positive Advance Finding granted by AusIndustry over Research and Development (R&D)
expenditures
• Enables a refundable tax offset to be claimed for a cash rebate on eligible expenditure incurred on
Stage 1 of the project
• Total estimated eligible expenditure of $70.7m which equates to cash rebate of $30.7m
Advance Finding
South Australian Company NeuRizer Ltd (NRZ or the Company) is pleased to announce that AusIndustry has
awarded the Company a “Certificate for Advance Finding” for certain activities under Stage 1 of the NeuRizer
Urea Project.
An Advance Finding is intended to provide companies with certainty that planned activities are eligible under
the R&D Tax Incentive programme. It is binding for the income tax years commencing 21/22 and two
subsequent years.
The finding provides certainty over current and forecast Research and Development claims for up to 3 years.
The Advanced Finding relates to estimated eligible expenditure of $70.7m to be incurred on Stage 1 of the
Project.
Eligible expenditure currently entitles NRZ to claim a refundable tax offset, or cash rebate at the rate of
43.5% of costs incurred. As such, if expenditure were to be incurred exactly in line with forecasts, then NRZ
would receive a cash rebate of $30.7m.
The refund is claimable by the Company following the lodgment of its annual income tax return.
Approximately $9.3m of such expenditure is for FY 21/22 with the Company anticipating a cash rebate of
approximately $4.0m. A significant component of expenditure of the project in the current financial year will
also be eligible for a rebate.
The Certificate of Finding is comprehensive and applies to activities included in the scope of works for Stage
1 including:
• Design, management, and drilling of investigation, initiation, inlet and outlet wells
• Design and procurement of Above Ground Gas Processing and Power Generation Facility
• Procurement and Installation of Gas Engines
• Technical management and operational support services
Managing director Phil Staveley commented:
“This is very welcome news. It is another in a long series of decisions which point to the veracity and integrity
of the project as a whole.”
The Executive Chairman has authorised this announcement for release to the ASX.