What is the R&D Tax Incentive?


The Research and Development (R&D) tax incentive is a government program to encourage companies to engage in R&D that will boost innovation. The tax offset for eligible R&D activities is separated into two core components:

  • a refundable tax offset for entities with aggregated turnover of less than $20 million with eligible expenditure

  • a non-refundable tax offset for all entities with eligible expenditure.

Are you Eligible?


The R&D tax incentive is a self assessment program . That means you asses for yourself whether or not your entity is eligible to register R&D activities and claim the R&D tax offsets each year.

This can be overwhelming and costly if not done correctly. In order to be certain you are claiming everything correctly, there are a number of R&D Consultants who will help you prepare your claim. Although R&D Lending does not provide this service, we have a number of trusted partners who would be happy to have an obligation free chat to help assess your claim.

How Much do i need to spend?

In general, your R&D entity has to have spent at least $20,000 on eligible R&D activities to be entitled to the offset. That is not to say there are not exceptions.

In some instances a company can claim the tax offset with a spend of under $20,000. This however, requires careful planning from the start. If you are just getting started and think this might apply to you, GET IN TOUCH and R&D Lending can point you in the right direction!