R&D Tax Incentive: Navigating the Current Environment

The R&D Tax Incentive remains one of the most valuable innovation supports in Australia — but claim methodology and documentation are under increasing scrutiny.

The R&D Tax Incentive provides a refundable or non-refundable tax offset for eligible R&D activities. Recent years have seen tighter administrative guidance, more active AusIndustry reviews and an elevated ATO focus on eligibility and expenditure.

Building a defensible claim starts with accurate activity categorisation — distinguishing core R&D activities from supporting activities, and ensuring both are properly documented. Expenditure claimed must be directly related to eligible activities.

Common claim risks include inadequate technical documentation, overly broad activity descriptions, and claims for activities more appropriately characterised as routine development or production.

We work with claimants across the claim lifecycle — activity documentation during the year, lodgement preparation and review response where required.

This publication provides general information only and does not constitute legal, tax or financial advice. Readers should obtain specific advice before acting on any information contained in this article.