Research and Development Tax Incentive
The Research and Development Tax Incentive (R&DTI) encourages business to invest in R&D that benefits companies and the broader Australian economy.
Incentivising investment in R&D
The R&DTI is an incentive program that supports your company to invest more in eligible R&D activities. If your R&D activities meet the program criteria, you may be eligible for a tax offset that covers some of the costs of your R&D. The R&DTI can also support collaboration with registered Research Service Providers (RSPs).
Who should apply for the R&DTI?
You should take a closer look at the R&DTI if your company:
- is incorporated under Australian or a foreign law
- conducts or plans to conduct one or more eligible core R&D activities
- has eligible R&D expenditure greater than $20,000 (if your expenditure is less than $20,000 you can still claim the tax offset by using a registered RSP to conduct your R&D).
What are ‘eligible R&D activities’?
- Types of eligible activities are set out in Section 355.25 of the Income Tax Assessment Act 1997, the law that applies to the program.
- Your activities must meet all the requirements for core and supporting R&D activities to be eligible for the program.
- More information on eligibility is available in our Guide to Interpretation.