R&D Tax Incentive Claims
The R&D Tax Incentive is Australia's largest funding lever for innovative businesses — a 43.5% refundable cash benefit on eligible experimental work, documented to audit standard.
The Numbers
What the incentive pays.
| Company situation | Turnover | Benefit |
|---|---|---|
| Refundable cash offset | Under $20M | 43.5% of eligible spend |
| Net benefit (in profit) | Under $20M | 18.5% after tax add-back |
| Non-refundable — tier 1 | Over $20M | 8.5 percentage points (0-2% intensity) |
| Non-refundable — tier 2 | Over $20M | 16.5 percentage points (over 2% intensity) |
Companies in loss positions receive cash. Companies in profit receive a tax reduction. The eligibility test is technical uncertainty — not success.
The Discipline
Claims built to survive scrutiny.
Software and technology claims face the closest ATO scrutiny — Taxpayer Alert TA 2017/5 draws a hard line between routine development and eligible experimentation. Claims here are built on the experimental record: what was uncertain, what was tested, what the evidence shows.
"The strongest claims are supported by evidence created during development — not documentation produced retrospectively."
Next Step
Is your work eligible?
A free review of your activities — honest advice before any fee.
