About R&D Tax Incentives

The R&D tax incentive program provides tax offsets for targeted research and development activities, aiming to encourage more companies to undertake R&D and further stimulate and grow the Australian economy through innovation.

Administration of the incentive follows a number of guidelines and stipulations which must be adhered to. The following documents give an overview of everything to do with the R&D tax incentive, from what exactly can be claimed to how an activity can be defined as R&D.

The R & D Tax Incentive Program provides support to companies investing resources into developing something new for the market, be it a process, product or service.

Companies with aggregated turnover of less than $10 million may be eligible for a tax offset of up to 43.5%:

  • 16% Tax offset on R & D expenditure for companies running at a profit
  • 43.5% Tax rebate on R & D expenditure for companies running at a tax loss

Companies with aggregated turnover between $10-20 million may be eligible for a tax offset up to 43.5%:

  • 13.5% Tax credit on R & D expenditure for companies running at a profit
  • 43.5% Tax credit on R & D expenditure for companies running at a tax loss

Companies with aggregated turnover of more than $20 million may be eligible for a tax offset up to 38.5%:

  • 8.5% Tax credit on R & D expenditure for companies running at a profit
  • 38.5% Tax credit on R & D expenditure for companies running at a tax loss