Guide to the Research and development tax incentive

Steps to claiming

These six steps will help you to work out if you can claim an R&D tax offset, which offset you can claim and the amount you can claim. They also explain how you lodge a claim for the offset.

Step 1 - Check that you meet the four initial eligibility requirements

Before you can claim the R&D tax incentive, you must first satisfy four initial requirements. You must be sure that you:

• are an eligible R&D entity
• carry out eligible R&D activities
• have registered with AusIndustry
• have incurred expenditure that qualifies as notional deductions.

Step 2 - Work out if you are controlled by any exempt entities

You need to identify if you are controlled by any exempt entities because this factor will indicate whether you're eligible for the 45% refundable tax offset or the 40% non-refundable tax offset.

Step 3 - Calculate your aggregated turnover

Knowing your aggregated turnover is also integral to understanding which offset you can claim.

Step 4 - Work out which tax offset you can claim

Once you have worked through steps 1-3 you can confirm which tax offset you can claim.

Step 5 - Calculate your tax offset

You will need to work out the amount of your R&D tax offset before lodging your claim.

Step 6 - Lodge your claim

You lodge your R&D tax offset claim with us.

Research and development tax incentive - home

Sections within Steps to claiming

• Step 1 - Check that you meet the initial eligibility requirements
• Step 2 - Work out if you are controlled by any exempt entities
• Step 3 - Calculate your aggregated turnover
• Step 4 - Work out which tax offset you can claim
• Step 5 - Calculate your tax offset
• Step 6 - Lodging your claim