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§ Grant
Government program providing tax offsets for Australian companies, supporting eligible R&D activities and innovation.
Up to 18.5% refundable tax offset for companies under $20M turnover, or 8.5% non-refundable offset for larger companies.
Companies must spend at least $20,000 on qualifying R&D activities or use a registered research service provider.
Australian-incorporated businesses conducting eligible R&D activities that generate new knowledge or improve products and processes.
Register R&D activities with AusIndustry within 10 months of your income year end, then claim the offset through your corporate tax return.
Yes, the program caps eligible expenditure at $150 million per year.
The Australia R&D Tax Incentive is a government program providing tax offsets for eligible research and development activities, jointly administered by the Department of Industry, Science and Resources and the Australian Taxation Office. Operating through AusIndustry and Industry Innovation and Science Australia, the initiative requires participants to incur at least $20,000 in eligible expenditure, capping claims at $150 million annually. Entities with an aggregated turnover under $20 million receive a refundable tax offset of 18.5 percent above their corporate tax rate, while larger companies receive a non-refundable offset based on research intensity. Applicants must register their core activities within ten months of their income year end before claiming the offset in their tax return. The program serves Australian-incorporated businesses and eligible foreign companies seeking to offset financial risks associated with innovation, clinical trials, and early-stage growth.
The Australia R&D Tax Incentive is a federal tax offset program that provides up to 18.5% refundable tax credits for eligible research and development activities. Administered jointly by AusIndustry and the Australian Taxation Office, the program supports companies spending a minimum of $20,000 on qualifying R&D, with expenditure capped at $150 million per year.
Australian-incorporated businesses conducting eligible R&D activities can apply. Companies must spend at least $20,000 on qualifying R&D or use a registered research service provider. The program covers core R&D activities that involve generating new knowledge or creating new or improved materials, products, devices, processes, or services. Supporting activities directly related to core R&D are also eligible.
Eligible companies with aggregated turnover under $20 million receive a refundable tax offset equal to their corporate tax rate plus 18.5 percentage points. Larger companies receive a non-refundable offset at the corporate tax rate plus 8.5 percentage points. The program effectively reduces the cost of R&D activities by returning a significant portion of qualifying expenditures through the tax system.
Companies register their R&D activities with AusIndustry within 10 months of their income year end. The tax offset is then claimed through the annual corporate tax return filed with the Australian Taxation Office. Applications require detailed documentation of R&D activities, expenditures, and the new knowledge being sought.
The R&D Tax Incentive supports thousands of Australian businesses annually across sectors from mining technology and agriculture to software development and medical devices. The program is a cornerstone of Australia's innovation policy, distributing billions of dollars in tax offsets each year.