Could your Business be Eligible for the R&D Tax Incentive?
Undertake a preliminary eligibility check to assess potential entitlement under the R&D Tax Incentive, followed by a consultation with one of our specialists.
What is the R&D Tax Incentive Program?
The Research and Development (R&D) Tax Incentive is an Australian Government program designed to encourage innovation by providing tax offsets to companies undertaking eligible R&D activities. Administered jointly by the Department of Industry, Science and Resources (DISR) and the Australian Taxation Office (ATO), the program supports businesses developing new or improved products, processes, materials, or technologies through experimentation and systematic investigation.
Eligible entities may access either a refundable or non-refundable tax offset, depending on turnover, to help offset the costs associated with qualifying R&D activities. The incentive applies to a broad range of industries and stages of development, provided the activities meet the statutory definition of core or supporting R&D under Division 355 of the Income Tax Assessment Act 1997.
The program is intended to foster genuine innovation, where the outcome of the R&D is unknown and cannot be determined in advance based on current knowledge, information, or experience. As such, maintaining contemporaneous documentation and articulating the technical uncertainties addressed through a structured approach is essential for a compliant and defensible claim.
SMEs (< $20M turnover)
43.5% Refundable Offset
Applies to eligible R&D expenditure under Division 355
Tailored to support early-stage and innovation-led growth
Large Companies (≥ $20M turnover)
Corporate Tax Rate + R&D Premium Non-Refundable Offset
8.5% premium for eligible R&D expenditure up to 2% of total business expenses
16.5% premium for eligible R&D expenditure above the 2% threshold
End-to-End R&D Submission Timeline
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We engage directly with your team to thoroughly scope and interpret your core and supporting R&D activities, ensuring we gain a deep and accurate understanding of the technical work being undertaken. This collaborative approach allows us to reflect the substance of your innovation with precision and integrity, forming the foundation for a defensible and well-aligned R&D submission.
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A critical component of any R&D Tax Incentive claim is the technical application submitted to the Department of Industry, Science and Resources. This document must clearly articulate the core and supporting activities undertaken, demonstrating how they meet the statutory definition of eligible R&D. At GWN Consulting, we apply a methodical and technically rigorous approach to drafting these applications, ensuring that our documentation aligns with legislative requirements, reflects current best practices, and withstands regulatory scrutiny.
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Following the completion of the technical application, we request your finalised financial accounts and undertake a detailed line-by-line review to identify and substantiate eligible R&D expenditure. This process ensures that all claimable costs are accurately mapped to the corresponding R&D activities in accordance with Division 355 of the Income Tax Assessment Act 1997, providing a clear and defensible basis for your financial claim.
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Once the R&D expenditure analysis and technical application have been finalised, the complete claim package is provided to you for final review and approval. This step ensures all information is accurate, complete, and reflective of your business’s R&D activities before lodgement.
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Following final sign-off, we proceed with the submission of the technical application to the Department of Industry, Science and Resources (DISR). Upon successful registration, a unique R&D registration number is issued. This is then referenced within the R&D Tax Schedule, which incorporates the eligible R&D expenditure and is lodged alongside your Company Income Tax Return with the ATO.
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As part of our service, we assist you in enhancing your existing R&D governance framework by developing and embedding practical systems for capturing technical activities, time allocations, and supporting documentation. This ensures your records accurately reflect the substance of your R&D work and support the integrity of future claims.
Core Activities
Core R&D activities are experimental activities:
Whose outcome cannot be known or determined in advance on the basis of current knowledge, information or experience, but can only be determined by applying a systematic progression of work that:
Is based on principles of established science; and
Proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and
That are conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services).
Supporting Activities
Supporting R&D activities are activities directly related to * core R&D activities.
However, if an activity:
Is an activity is excluded as a core activity; or
Produces goods or services; or
Is directly related to producing goods or services;
the activity is a supporting R&D activity only if it is undertaken for the dominant purpose of supporting * core R&D activities.
At GWN Consulting, we work closely with your team to accurately identify and define eligible core and supporting R&D activities in line with legislative requirements. Proper scoping is critical, not only does it form the foundation of a compliant and defensible claim, but it also ensures that the full extent of your qualifying R&D work is captured and clearly articulated. By aligning the technical narrative with the statutory definitions under Division 355 of the Income Tax Assessment Act 1997, we help ensure that you access the full benefit of the R&D Tax Incentive while maintaining integrity and consistency across your claim.
Examples of Eligible R&D Expenditure
Employee Salaries and On-Costs - Wages, superannuation, payroll tax, and leave entitlements for staff directly engaged in eligible R&D activities.
Contractor and Consultant Fees - Payments to external parties for services directly linked to the conduct of R&D, including technical specialists, research firms, or software developers.
Materials and Consumables - Items consumed or transformed during R&D, such as raw materials, components, reagents, or prototype parts.
Decline in Value (Depreciation) of R&D Assets - Depreciation of tangible assets (equipment, machinery) used in R&D activities.
R&D-Related Overheads and Utilities - Apportioned rent, electricity, water, internet, and other operational expenses directly attributable to R&D activities.
Travel Related to R&D Activities - Travel and accommodation costs where the purpose of travel is directly related to R&D (e.g. site testing, field trials, or experimental collaboration).
Prototype Development and Testing Costs - Expenditure incurred to build and test prototypes as part of the experimental process, excluding those built for commercial production.
Trial and Pilot Plant Expenses - Costs associated with operating pilot plants or trial runs where the activities are experimental in nature.
Apportioned Repairs and Maintenance of R&D Assets - Repairs of equipment used for R&D purposes, to the extent they support eligible activities.
R&D-Specific Software Licences and Subscriptions - Cost of digital tools or platforms directly supporting R&D (e.g., simulation software, technical modelling tools).