Solving business uncertainty through structured research and innovation.

The R&DTI is an Australian government programme that provides financial support for eligible R&D activities through the tax system. Businesses can claim a tax benefit on eligible R&D expenditure, but must assess eligibility, register activities, and submit a compliant claim.

R&D is costly and uncertain, which discourages investment.

The government shares this risk to encourage innovation, which drives:

• Industry advancement
• Productivity growth
• Long-term economic development

The R&DTI aligns business innovation with national economic priorities.

The R&DTI is not a traditional grant.

It operates through the tax system and provides a benefit based on eligible R&D expenditure already incurred.

It is structured as an incentive offset, not a correction of overpaid tax.

The R&DTI applies across a wide range of industries, including:

• Professional, scientific and technical services
• Manufacturing
• Mining
• Wholesale trade
• Information media and telecommunications
• Financial and insurance services
• Agriculture, forestry and fishing
• Retail trade
• Electricity, gas, water and waste services
• Health care and social assistance
• Construction
• Transport, postal and warehousing
• Arts and recreation services
• Rental, hiring and real estate services
• Administrative and support services
• Education and training
• Other services
• Public administration and safety
• Accommodation and food services
• Special ATO division (out of ANZSIC scope)

Eligibility depends on the nature of the R&D activities — not the industry itself.

To be eligible for the R&DTI, a company must meet both entity-level and activity-level requirements.

Importantly, eligibility is not determined by industry or intention — it depends on whether activities meet strict technical and compliance criteria.

Many businesses assume they are “not doing R&D” — but in practice, the R&DTI applies across a wide range of industries.

As long as a company:

• Is an eligible R&D entity (typically an Australian incorporated company)
• Is subject to Australian income tax
• Undertakes activities involving technical uncertainty and a systematic experimental approach

It may be eligible for the R&DTI.

This is common.

Many businesses are already undertaking activities that may qualify, but:

• Have not identified them as R&D
• Have not structured them in line with R&DTI requirements

In many cases, existing business challenges — such as developing new systems, improving processes, or addressing technical constraints — may involve elements of eligible R&D when properly assessed and structured.

The key is not whether you think you are doing R&D, but whether your activities can be assessed, structured, and substantiated under the R&DTI framework.

Not necessarily in the form of a dedicated internal team.

What is required is the ability to manage R&D activities in a structured and consistent way — including how activities are defined, documented, and aligned with financial records.

For many businesses, this capability does not exist as a formal internal function. Instead, R&D activities are embedded within day-to-day operations.

IR addresses this by acting as an external research office, providing both the framework and system needed to:

• Define and structure R&D activities
• Align technical and financial inputs
• Maintain a continuous and auditable record of work

This enables businesses to establish a functional R&D capability without building a dedicated internal team.

The R&DTI provides a percentage-based tax offset on eligible R&D expenditure, rather than a fixed funding amount.

Depending on eligibility, businesses may:

• Offset current income tax liabilities
• Receive a cash refund (for eligible companies)

The actual benefit depends on:

• Aggregated turnover
• Corporate tax rate
• R&D intensity (for larger companies)

In short: the more eligible R&D you conduct, the greater the potential support — but the outcome is driven by structure, not just spend.

Yes — but only for eligible companies.

Businesses with aggregated turnover below AUD 20 million may receive a refundable offset, meaning:

• If tax payable is low or zero,
• Any excess offset may be refunded as cash

However, refundability may not apply in certain cases (e.g. where ownership structures involve exempt entities).

Yes.

For income years starting on or after 1 July 2021:

• An AUD 150 million annual cap applies to R&D expenditure eligible for the R&D tax offset

Expenditure above this cap:

• Does not receive the R&DTI offset
• Is treated as a normal business deduction under standard tax rules

Applying for the R&D Tax Incentive (R&DTI) is a structured process that involves three key steps, and it is not automatic.

The R&DTI process timelines can vary depending on the stage and the readiness of the business.

In general, the process involves:

• Registration of R&D activities with the Department of Industry, Science and Resources
• Lodgement of the R&D claim through the company tax return with the Australian Taxation Office

Timeframes may vary based on factors such as:

• The clarity of R&D activities
• The quality and completeness of documentation
• Coordination with financial reporting and tax lodgement

With a well-structured approach, businesses can typically progress through the process efficiently and with greater certainty.

The R&DTI application generally involves three main stages:

Each stage requires alignment between technical documentation and financial data to ensure the claim is properly substantiated.

From a business perspective, preparing an R&DTI claim typically involves providing a set of core inputs:

• A clear description of projects and the underlying technical challenges
• Financial records supporting R&D expenditure
• Available documentation evidencing the activities undertaken

However, the key challenge is not the availability of information, but how that information is interpreted, structured, and aligned with R&DTI requirements.

This is where IR plays a critical role — working with businesses to:

• Translate technical and operational activities into R&DTI-aligned research frameworks
• Align technical narratives with financial data
• Ensure that documentation supports a clear and defensible claim position