Research and development tax incentive overview

The research and development (R&D) tax incentive provides a targeted tax offset to encourage certain companies to conduct R&D that benefits Australia.

It provides generous benefits for companies performing eligible R&D activities and has the following two core components:

• a 45% refundable tax offset for eligible entities with an aggregated turnover of less than $20 million - unless they are controlled by tax exempt entities
• a 40% non-refundable tax offset for all other eligible entities.

The tax incentive replaces the R&D tax concession and is jointly administered by Innovation Australia (assisted by AusIndustry) and us.

To help you work out if you are eligible for the tax incentive, we together with AusIndustry have developed an overview. This publication provides information about the tax incentive, including what R&D activities are eligible, the amounts you may be able to claim and where to go to get more information from us or AusIndustry.

For a copy of the overview, visit AusIndustry's website and refer to R&D Tax Incentive.