R&D Tax Incentive (Australia) 🎁 Program
Refundable R&D tax offset of your company tax rate plus 18.5% for Australian companies with turnover under A$20 million.
| Who qualifies | Australian (or Australian-resident) companies doing eligible R&D with at least A$20,000 of R&D spend; refundable offset if aggregated turnover is under A$20 million. |
|---|---|
| Open in | Australia & New Zealand |
| Partner code needed | No: apply directly |
| Deadline | register within 10 months of your income year end |
| Terms last checked | 2026-10-11 |
About R&D Tax Incentive (Australia)
What you get
A tax offset for eligible R&D spending. If your company's aggregated turnover is under A$20 million, the offset is refundable and equals your corporate tax rate plus an 18.5% premium, so a loss-making startup can receive cash back. Larger companies get a non-refundable offset at the company tax rate plus 8.5% or 16.5%, depending on R&D intensity. Claims are capped at A$150 million of R&D expenditure a year.
Who qualifies
Companies incorporated under Australian law, foreign-incorporated companies that are Australian tax residents, and some foreign companies operating through a permanent establishment under a tax treaty. Activities must be core R&D (experiments to generate new knowledge where the outcome cannot be known in advance) or supporting activities directly related to them. Tobacco and gambling R&D is excluded unless it is for harm minimisation. You must spend at least A$20,000 on eligible R&D in the year, unless you use a registered research service provider.
Good to know
It is self-assessed. You must register your R&D activities with the department within 10 months of the end of the income year, then claim the offset in your company tax return with the ATO. You can ask for a binding advance finding if you are unsure. The government announced changes in the 2026-27 Budget that start on 1 July 2028; current rules apply until then.
Verdict
The main source of non-dilutive cash for Australian tech startups. Keep experiment records as you go, and do not miss the 10-month registration window.
How to apply
- Self-assess that your company is an R&D entity and your activities are core or supporting R&D.
- Optionally apply for an advance finding for certainty.
- Keep records of hypotheses, experiments, results and costs during the year.
- Register your R&D activities on the R&DTI customer portal within 10 months of your income year end.
- Claim the offset in your company tax return with the ATO.
Who it is for
Steps R&D Tax Incentive (Australia) helps with
Pros
- Refundable for small companies, so it pays even when you have losses
- Open to all sectors, no competition
Cons
- A$20,000 minimum spend
- Self-assessed, so weak records risk clawback
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