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R&D Tax Incentive
Program ID: 6369
This program is a broad-based, market-driven assistance for all industries which provides a targeted tax offset to encourage more companies to engage in R&D.

It aims to:
- Boost competitiveness and improve productivity across the Australian economy.
- Encourage industry to conduct R&D.
- Provide business with more predictable, less complex support.
- Improve the incentive for smaller firms to engage in R&D.

The core components of the incentive are:
1. For income years from 1 July 2016:
- A 43.5% refundable tax offset for companies if they have an annual turnover of less than $20 million. This tax offset is available to companies that are not controlled by tax exempt entities.
- A non-refundable 38.5% tax offset for all other eligible companies. Unused non-refundable offset amounts may be able to be carried forward to future income years.

2. For income years before 1 July 2016:
- The refundable offset rate is 45%.
- The non-refundable offset rate is 40%.

Additional benefits include:
- The option to gain certainty about the eligibility of the R&D activities through an Advance Finding.
- Some overseas R&D activities are claimable (certain conditions apply).

Companies can claim up to $100 million a year for R&D expenditure. If the company''s R&D expenditure is more than $100 million in a year, amounts claimed above $100 million may attract a non-refundable offset at the company tax rate.

Subject to eligibility criteria and exclusions, a company can generally claim a tax offset for:
- Expenditure incurred on R&D activities.
- Decline in value of depreciating assets used in R&D activities.
- Balancing adjustments for depreciating assets used only in R&D activities.

The deadline for lodging an application for registration is 10 months after the end of a company’s income year. This means:
- A company with a non-standard income period of 1 January 2015 to 31 December 2015, must lodge its registration application with AusIndustry by 31 October 2016.
- A company with a standard income period of 1 July 2015 to 30 June 2016 must lodge its registration application with AusIndustry by 30 April 2017.
Who Can Apply
Eligible applicants include companies that have incurred notional deductions (R&D expenditure) of at least $20,000. These companies must be an R&D entity, that is:
- Incorporated under Australian law.
- Incorporated under foreign law but an Australian resident for income purposes.
- Incorporated under foreign law and:
a) A resident of a country with which Australia has a double tax agreement, including a definition of ''permanent establishment''.
b) Carrying on business in Australia through a permanent establishment as defined in the double tax agreement.

Companies can claim less than $20,000 R&D expenditure if they have conducted their R&D through a Research Service Provider (RSP) or Co-operative Research Centre.

Please review the Guidelines for the complete eligibility requirements.
Eligible Activities
Eligible R&D activities:
- Must have at least one core activity.
- Can have multiple supporting activities for each core activity.
- Must meet the legal definition of core and supporting activities.
- Must be based on the principles of established science.
- Must be seeking to answer a technical or scientific unknown.

Please review the Eligibility of Activities Factsheet for the legal definitions of core and supporting activities.
Applies to
GuidelinesOctober 2016
Fact Sheet - Eligibility of ActivitesOctober 2016
Registration Information SheetOctober 2016
Application Notes - Advance Overseas Finding FormOctober 2016
Application Notes - RegistrationOctober 2016
List of Research ProvidersOctober 2016
The R&D Tax Incentive Guidance - OverviewOctober 2016
Use these documents as a guide only - always get the latest direct from the Administrator
Status Open
Start Application 1 May 2015
Opening Date 1 July 2015
Closing Date 31 October 2016
Closing Information
Please see the Overview for the closing details.
Funding Type Tax Offset
Total Funding Pool $3.0B
Requires Co-contribution? No
Competitive No
Location National
General - Non-Industry Specific
Environment and Sustainability
Innovation and R&D
Difficulty Rating
Department of Industry, Innovation and Science (DIIS)
Program Administrator
AusIndustry and Australian Tax Office (ATO)
Telephone 132 846
General Website Visit website
Program Website Visit website