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The R&D Tax Incentive is the Australian Government’s principal measure to encourage industry investment in R&D. It is a broad-based, market driven program that aims to boost company competitiveness, improve productivity and deliver economy-wide benefits to Australia.


The R&D Tax Incentive replaces the R&D Tax Concession for R&D in income years commencing on or after 1 July 2011. It provides generous benefits for eligible R&D activities.


The two components of the program are:

• a refundable 45 per cent tax offset for eligible companies with an aggregated turnover of less than $20 million per annum; or

• a non-refundable 40 per cent tax offset for all other eligible companies.


The R&D Tax Incentive is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO).

Innovation Australia and AusIndustry are responsible for registration of activities and for determining whether activities are eligible. The ATO is

responsible for determining the eligibility of whether you can apply and of expenditure incurred and claimed under the program.


The R&D Tax Incentive operates on a self-assessment basis. Claimants are responsible for ensuring they meet the key eligibility criteria of the program in relation to registered R&D activities and related expenditure.