R&D Tax Credit

 R&D Tax Credit Assistance

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What is the R&D Tax Credit

The R&D Tax Credit is rebate program for companies that are conducting research and development in Australia.


How is the R&D tax credit calculated?

For most companies, the R&D tax credit provides a tax rebate of between 18.5% to 43.5%.

So if you spend $100,000 on developing a new product,  you could get back between $18,500 and $43,500 depending on the company revenue and profitability.

See the R&D tax calculator for information.


Eligibility for the R&D Tax Credit

The eligibility of your business or company is based on several factors.

On the business side of things, you are eligible for a credit if:

  • You have spent $20,000 or more on eligible R&D activities
  • You are an Australian entity (not a trust)
  • You are conducting your experimentation in Australia
  • You are conducting your activities for the purpose of generating new knowledge.


R&D Tax Credit Assistance

Call 1300 658 508

R&D Tax Credit

How big is it?

About 13,000 companies are registered in the R&D tax credit, of which about 10,000 claim the refundable tax offset.

The remaining 3000 firms claim the non-refundable tax offset.



After reading through the guidance and determining whether or not you are eligible, you will need to begin putting together the activities registration.

You will register your activities with the Department of Industry, Innovation and Science, the subbranch called AusIndustry.

You will need to complete the R&D Tax credit application form.

Each year that you have eligible work, you will need to complete a new form with your eligible activities, in order to receive your R&D Tax Credit.


Things to keep in mind

Some things to keep in mind:

  • Registration of the R&D activities has a deadline of ten months after your financial year end, e.g. if your financial year ends on June 30, your final application date will be April 30 the following year; and
  • You will need to have the activities registered and receive your Innovation Number before you can include the R&D Tax Credit workings in your income tax return.

The current R&D Tax Credit laws came into existence back in 2011; however, companies that wish to access tax offsets from before this date can do so.

R&D Tax Credit Assistance

Call 1300 658 508

R&D Tax Credit



Claiming the R&D Tax Credit is a simple process.

You can access the offset by following these steps:

  1. Make sure that your company is eligible
  2. Draft your application, including detailing of your eligible experimental activities
  3. Draft the complementing budget and allocate your expenses between to your project(s)
  4. Lodge the activities with AusIndustry
  5. Await a response confirming registration of your activities and receive your Innovation Number
  6. Include the conclusions in your Income Tax Return
  7. Lodge your return

You will receive your offset with the completion of your tax returns.


Contesting the government’s analysis

The government can and will reject activities they do not deem eligible with a Request for Information (RFI).

This will state their queries with your claims and request you expand on the work, eventually determining their stance on your work after you have responded.

The program is a self-assessment, but under query of the government, the interpretation of whether or not your work is eligible is the decision of AusIndustry.

Your RFI is your best chance of appealing, and is the government giving you a second chance to further justifying and expand on your claims.

The ATO can also contest your financial inclusions.

This will come in the form of financial evidence and workings that accompanied the R&D Tax Credit claim.

You may appeal, if you have failed an RFI from either party, which will enter formal legal territory.


Maximise your R&D Tax Credit

Having worked as an R&D consultant for a number of years, I have seen how companies can legitimately increase their credit.

Contact us for assistance with determining your R&D intensity.


R&D Tax Credit Assistance

Call 1300 658 508

R&D Tax Credit


The R&D tax credit applies to companies earning over $20M. If there is no tax to pay, then the R&D tax credit will sit there like a carry forward loss and used in the future. There is no cash back.

To qualify for R&D tax credit you must spend at least $20,000 on eligible R&D activties.

Eligible costs for R&D tax credits are those that have a direct relationship to the eligible R&D activities

There is a deadline for the R&D tax credit applications. If your income year ended on 30 June 2021, you have until Tuesday 3 May 2022 to submit your application. 

Registrations after deadline will not be accepted. 

The R&D tax credit is between 18.5% to 43.5%.

If you spend $100,000 on developing a new product, you could get back between $18,500 and $43,500 depending on the company revenue and profitability.

If you’re profit-making, you can receive up to 25% credit back from your R&D expenditure. If you’re loss-making you can receive up to 33.35%. The more profit you make, the greater your credit will be (up to the 25% maximum).

You can make a claim for R&D tax credit up to 2 years after the end of the accounting period it corresponds. 

R&D tax credits can also benefit “Qualified Small Businesses.” A Qualified Small Business, defined as a business with less than $20 million in annual gross receipts and having gross receipts for no more than five years.

You need to undertake eligible R&D activities that involves research and experimentation.

You also need to:

  • spend over $20,000
  • operate as company (no trusts, partnerships, sole traders)
  • undertake R&D activities in Australia

What is the #1 grant for start-ups?

12,000+ companies access the R&D tax incentive per year that yields a CASH REBATE of up to 43.5%.
This might be perfect your start up.
Do you want to know more?

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