R&D Tax Incentive
Developing a new product, process, software or technology? Your company may be able to get a tax offset – and in some cases a cash refund – for eligible research and development spending. UV TAX helps you understand the rules and include the claim in your company tax return.
✔ Registered tax agent✔ Plain-English advice✔ Australia-wide
How much could you get back?
Turnover under $20 million
Refundable offset = company tax rate + 18.5%. For a company taxed at 25%, that’s 43.5 cents for every eligible dollar. If the company is in tax loss, the offset can be paid as a refund (some exceptions apply).
Turnover $20 million or more
Non-refundable offset = company tax rate + 8.5% on R&D spending up to 2% of total expenses, and + 16.5% above that. Unused amounts can generally be carried forward.
Simple example
A small software company (aggregated turnover under $20 million, 25% tax rate) spends $200,000 on eligible R&D. The R&D tax offset could be about $87,000 (43.5% × $200,000). If the company is in a tax loss, much of this may be paid back as cash.
Who can claim?
- Companies – generally only companies can claim, not sole traders, partnerships or trusts
- Spending of at least $20,000 on eligible R&D in the year (unless you use a registered research service provider)
- Activities that are registered for the income year
- Companies of all sizes and in all industries – software, manufacturing, agriculture, food, health, engineering and more
What counts as R&D?
Core R&D activities
Experimental work where the outcome can’t be known in advance, based on a hypothesis, run in a systematic way, to create new knowledge.
Supporting activities
Activities directly related to core R&D (some need to meet a stricter “dominant purpose” test).
Usually not eligible: routine testing, market research, cosmetic changes, ordinary software customisation, management studies and activities to simply comply with regulations.
How the process works
1. Keep records
Document your hypotheses, experiments, results and time spent – as you go.
2. Register
Register your R&D activities within 10 months after year end.
3. Calculate
Work out eligible R&D expenditure – staff, contractors, materials and more.
4. Claim
Include the R&D schedule and offset in your company tax return.
⏰ Key deadline: registration is due within 10 months after the end of your income year – for a 30 June year end, that’s by 30 April the following year.
Records you will need
- Project plans, hypotheses and technical notes
- Experiment results and what you learned
- Timesheets showing staff time on R&D
- Invoices from contractors and suppliers
- Payroll records and superannuation for R&D staff
- Evidence of how expenses relate to each R&D activity
How UV TAX helps
- Explain the rules and whether the program could suit your company
- Help you organise expenditure and records for the claim
- Prepare the R&D tax offset calculation and include it in your company tax return
- Work alongside a specialist R&D technical adviser for complex technical write-ups, where needed
- Help with company setup if you are a startup operating as a sole trader
⚠️ Important – general information only. This page is a simple overview of the R&D Tax Incentive as at November 2026 and is not tax or legal advice. The program is self-assessed: eligibility depends on your specific activities and expenditure, and both the registration and the tax offset can be reviewed later, with penalties for incorrect claims. Rates, thresholds and rules can change. Complex or technical claims may need input from a specialist R&D adviser. UV TAX cannot guarantee that your activities are eligible or that a claim will be accepted. Please get advice for your situation before registering or claiming.
Could your company claim R&D?
Talk to us – free consultation and a fixed-fee quote.
0466 268 405Frequently asked questions
What is the R&D Tax Incentive?
It is an Australian Government program that gives eligible companies a tax offset for money spent on eligible research and development activities.
How much is the R&D tax offset?
For companies with aggregated turnover under $20 million, the refundable offset is the company tax rate plus an 18.5% premium – for example, 43.5% for a company taxed at 25%. Larger companies receive a non-refundable offset with a premium of 8.5% or 16.5%, depending on their R&D intensity.
Can sole traders or partnerships claim?
No. Generally only companies can claim the R&D Tax Incentive.
Is there a minimum spend?
Generally you need at least $20,000 of eligible R&D expenditure in the year, unless you use a registered research service provider.
When do I need to register?
You must register your R&D activities within 10 months after the end of your company’s income year – before you claim the offset in your tax return.
Does registration mean my activities are eligible?
No. Registration confirms your application is complete. The program is self-assessed and claims can be reviewed later, so good records are essential.
Related
General information current as at November 2026.