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R&D Eligibility Assessments

Adequately assessing a potential R&D claim at the beginning is one of the most important parts of the R&D claim process.

In Australia, from 1 July 2021 (FY22), the R&D Tax Incentive provides:

• For companies with group turnover less than $20 million per annum, a 18.5% refundable tax offset above corporate tax rate; and
• For companies with group turnover greater than $20 million per annum, a 8.5% OR 16.5% non-refundable tax offset above corporate tax rate for R&D expenditure up to and above 2% of total business expenditure respectively.

What can I claim?

R&D activities need to meet certain legislative requirements for them to be deemed eligible ‘core’ activities by AusIndustry. The basic 3 requirements of a ‘core’ activity are illustrated in the below flowchart.

Calculate your Benefit

Industry Specific Audit Issues

AusIndustry undertakes periodic reviews of R&D activities and the documentation used to substantiate those activities.  The below industry specific checklists contain some of the information AusIndustry may review or request in the event an activity assessment is undertaken.

• Automotive
• Electronic Engineering/ Software
• Manufacturing
• Biotech
• Mining / Oil and Gas
• Other R&D activities