About the R&D Tax Incentive

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 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.

For the period 01 July 2017 to 30 June 2018, the incentive has two core components. Entities engaged in R&D may be eligible for:

a 43.5% refundable tax offset for eligible entities with an aggregated turnover of less than $20 million per annum, provided they are not controlled by income tax exempt entities


a 38.5% non-refundable tax offset for all other eligible entities (entities may be able to carry forward unused offset amounts to future income years).