The Research and Development Tax Incentive (R&D Tax Incentive or R&DTI) helps to offset some of the costs you put into eligible R&D, which benefits the wider Australian economy.

The R&D Tax Incentive provides a tax offset for some of a company's cost of doing eligible research and development (R&D) activities by reducing a company's income tax liability. Tax offsets of 43.5% or 38.5% are available for costs incurred on eligible activities depending on a company’s annual aggregated turnover. The 43.5% benefit is a refundable offset.

Self-assessment programme

The R&D Tax Incentive is a self-assessment programme. This means that you are responsible for assessing whether your company and the R&D you are conducting meet the eligibility requirements of the programme. These requirements are determined by legislation.

To apply for the R&D Tax Incentive, you will need to register your eligible R&D with the Department of Industry, Innovation and Science (the department).

You are also responsible for keeping all records and documentation to demonstrate your R&D is eligible as defined in the legislation.

Applications can be made at any time, and must be within 10 months of the end of the income year.

To be eligible for the R&D Tax Incentive you must:

• be a company that is liable to pay income tax in Australia
• conduct at least one activity that meets the definition of a core R&D activity
• have eligible R&D expenditure <$20,000

You are an eligible R&D entity if you are a company that is:

• incorporated under Australian law, or
• incorporated under foreign law with specific circumstances

You are not an eligible R&D entity if you are:

• individuals
• corporate limited partnerships
• exempt entity (exempt from income tax)
• trusts are generally not eligible

• Phone: 13 28 46
• Email: rdtaxincentive@industry.gov.au