What Is a Registered Research Service Provider (RSP)?

What is a Registered Research Service Provider (RSP)?

A Registered Research Service Provider (RSP) is a scientific or technical service provider that a company can engage to conduct R&D activities on its behalf under the R&D Tax Incentive.

RSPs are registered by the Department of Industry, Science and Resources (the department) and listed in the RSP register. All RSPs must be registered with the department before they can provide R&D services under the R&DTI. In practice, the R&D Tax Incentive is jointly administered by AusIndustry — within the department, on behalf of Industry Innovation and Science Australia (IISA) — and the Australian Taxation Office (ATO). AusIndustry assesses and registers eligible R&D activities, while the ATO administers the rules for eligible entities and R&D expenditure (the tax offset).

To be registered, an RSP must demonstrate the capability to provide or manage subcontracted R&D services in one or more specific research fields, and must charge fees on ordinary commercial terms — not subsidised by government resources or inflated to exploit the R&DTI.

What is the $20,000 threshold benefit of using an RSP?

The headline benefit is that expenditure you pay to a registered RSP is not subject to the $20,000 minimum R&D expenditure threshold — so you can claim the R&D tax offset even for small amounts of R&D spend.

Normally, to be entitled to an R&D tax offset for an income year, your total notional R&D deductions must be at least $20,000. business.gov.au states the rule plainly: your eligible R&D expenditure for the income year must be at least $20,000, but that threshold does not apply if you use a research service provider to conduct your R&D.

Two conditions apply. The RSP must not be an associate of your R&D entity, and the services must fall within a research field for which the RSP is registered. When both are met, that expenditure can be claimed from the first dollar — which is what removes the $20,000 barrier for small claimants.

Important: using an RSP does not guarantee your activities are eligible. The R&DTI is a self-assessment program, so you must still self-assess that your underlying activities qualify as eligible R&D.

RSP vs R&D tax consultant — what's the difference?

An RSP actually conducts your R&D, is government-registered, and unlocks the $20,000-threshold exemption; an R&D tax consultant typically helps you prepare and lodge your claim and is not a government-registered category — and only a registered tax agent can charge a fee to prepare and lodge your tax return.

These are different roles, and a company may use both. An RSP supplies research capability — personnel, facilities and technical expertise — and conducts eligible R&D on your behalf. An R&D tax consultant advises on, prepares and supports your registration and offset claim. Neither one guarantees eligibility: under the self-assessment system, responsibility stays with you.

Where is the public RSP register and how many RSPs are there?

The Department of Industry, Science and Resources maintains a public, searchable RSP register on business.gov.au that lists current and previously registered providers, their research specialities, locations and contact details — filterable by research field, provider name and Australian state or territory.

Each RSP is registered against one or more specific research fields, so you can match a provider whose registered fields cover your project. Because the register shows both current and previously registered providers, confirm a provider's current registration status before engaging them.

business.gov.au does not publish a headline total of RSPs. A dated snapshot of the downloadable list (generated in 2021) listed roughly 180 provider entries — but this figure is indicative only and changes over time as providers are added or removed. Treat any stated number as approximate and time-sensitive.

Who should use a Registered Research Service Provider?

RSPs can be engaged by companies of any size, but they are particularly useful for two groups: SMEs and start-ups with small R&D budgets, and companies that lack in-house research capability.

For smaller companies, the $20,000-threshold exemption is the deciding factor: expenditure incurred to a non-associate RSP, for services in a research field for which it is registered, is not subject to the threshold. This lets businesses with only small amounts of R&D spend still access the incentive.

For companies without research personnel or facilities, an RSP supplies the people, equipment and technical expertise to run rigorous experiments the company could not perform itself. Eligibility and the amount you can claim depend on your circumstances — this is general information, not tax advice.

How do you engage and use an RSP — step by step?

1. Confirm you have eligible R&D activities. Self-assess that your activities meet the R&DTI definition of core and supporting R&D activities. Using an RSP does not by itself make your activities eligible.
2. Find a registered RSP in the right field. Search the department's RSP register on business.gov.au and filter by provider name, research field and location to match a provider whose registered fields cover your project.
3. Engage the RSP to plan and conduct the work. RSPs supply the scientific and technical capability you may not have in-house — see our R&D services.
4. Register and claim. Register your R&D activities with AusIndustry within 10 months of the end of your income year, then claim the offset in your company tax return. Expenditure paid to an RSP is reported at its own dedicated label in Part A of the R&D Tax Incentive schedule, separate from other R&D expenditure.

For more R&D Tax Incentive explainers, read our R&D insights.

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