Checklist for claiming R&D tax incentive

Use our checklist to make sure you claim the R&D tax incentive correctly.

Last updated 13 May 2026

Self-assess the eligibility of the R&D activities

To take advantage of the R&D tax incentive you must first be an eligible R&D entity.

Once you've confirmed this, you need to ensure your R&D activities are eligible core or supporting R&D activities.

If you are unsure about the eligibility of your R&D activities, there are different types of findings you can apply forExternal Link through DISR. Findings provide practical certainty to program participants and allow the regulators to determine the eligibility of activities.

For more information, see:

Record keeping

To access the R&DTI you need records showing you're entitled to your claim. This is a legal requirement.

You must keep records showing:

you're claiming eligible core or supporting R&D activitiesExternal Link
your claim amount is correct and based on an eligible type of expenditure.
You must create records at the time you conduct your R&D (called contemporaneous records). Your usual business and tax records may help, but often won't cover everything you need.

See Keeping records and calculating your notional deductions for more information.

Apply for registration of activities

You must register your R&D activities with DISR and receive your unique registration number:

for every income year you want to claim an offset
within 10 months of the end of your company's income year
prior to claiming the R&D tax offset in your company tax return.

Registration of activities by DISR is not a verification of eligibility or an approval of the payment of a tax offset.

Complete the R&D schedule and company tax return

Before lodging your claim with us, you will need to calculate the amounts you'll include in your R&D schedule and company tax return.

Key parts of this include calculating the add back of R&D accounting expenditure, calculating your offset and making any adjustments that are needed.

Calculate the add back of R&D accounting expenditure

You will need to complete add back labels at:

Preliminary calculation, label D of the R&D Schedule.
Item 7, label D of the Company Tax Return.

You must complete these to recognise that you are claiming amounts as notional deductions for the R&D tax incentive, rather than as a general deduction. These labels also prevent you from inadvertently claiming the same expenditure twice, as you cannot claim a general deduction for an amount you are claiming as a notional deduction for R&D.

For information about how to calculate the add back labels see:

Accounting expenditure subject to the R&D tax incentive in the Company tax return instructions
Preliminary calculation Add back of R&D accounting expenditure in the R&D tax incentive schedule instructions.

Calculate your R&D tax offset

The R&D tax incentive calculator will help you to calculate your R&D tax offset and any adjustments you may need to make. Other pages that may help include:

Eligibility for the R&D tax incentive
Amounts you can claim (about notional deductions)
Steps for claiming the R&D tax incentive (helps determine which offset you can claim)
Clawback of R&D tax incentive offset and catch-up deductions.
R&D activities delivered by associated entities.
Keeping records and calculating your notional deductions

The R&D tax incentive schedule instructions and Company tax return instructions also explain how the forms are completed.

Making adjustments

You may need to make clawback adjustments or a catch-up deduction to your tax return if:

you have received a government recoupment
your R&D activities have produced either marketable products or products that have been applied to your own use
you have a balancing adjustment for an R&D asset.

If you are registered for GST, you will also need to take into account Division 27 of the ITAA 1997 when working out your R&D notional deductions.

Lodging your claim for the income year

After registration with DISR, you claim the R&D tax incentive by

completing an R&D tax incentive schedule and relevant labels of the company tax return
lodging them with the ATO.

See Step 6 Lodging your claim for more information.

Making incorrect claims may result in penalties. Ensure you only include expenditure in an R&D claim that is actually incurred on R&D activities, not other ordinary business activities. It is important that the information you supply to both DISR and us is accurate, consistent and supported by evidence and records.

Correcting mistakes and challenging decisions

Once you have lodged your registration, or your claim for the R&D tax incentive, you may find you need to:

amend your tax return:
- if you have made an error, for example, you've claimed normal business activities
- if you've entered into an arrangement you've later found to be ineligible, via a taxpayer alert. You may want to seek independent professional advice, and make a voluntary disclosure to us or amend your tax return.
- if DISR makes a finding on your registration or the ATO conducts a review on your R&D claim, and it is determined that all or part of your R&D activities are not eligible, then your tax return will be amended and penalties and interest charges may be applied.
vary your registration or claim

If you are dissatisfied with the amount of tax offset we have allowed you, you can object to a decision.

When we or AusIndustry makes a decision on your registration or claim, we will tell you how you may request a review if you are dissatisfied with the decision. See Correcting mistakes or disputing decisions for more information.

Using a tax agent

If you are going to pay someone to help you with your tax return or R&D tax incentive schedule, you should first make sure they are a registered tax agent.

Only a registered tax agent can charge a fee to prepare and lodge your tax return, or provide other services described as 'tax agent services'. They must be registered with the Tax Practitioners Board and follow strict laws that ensure they act in a professional manner.

Advising and assisting you with tax concessions, where this involves applying the tax law, is a tax agent service.

If you aren't sure if your tax agent is registered, you can:

ask to see their Certificate of Registration
search the Tax Practitioners Board registerExternal Link.

Penalties may apply to participants and promoters of aggressive R&D arrangements. Registered tax agents involved in the promotion of any type of aggressive R&D arrangement may be referred to the Tax Practitioners Board to consider whether there has been a breach of the Tax Agent Services Act 2009..

Red flags of risky behaviour

We need your help to ensure the R&D tax incentive only benefits those who are eligible.

As a claimant you should ask your tax agent to check:

your claim against the DISR eligibility guidelines
the expenditure you have claimed is actually incurred on your registered R&D activities
that you have kept adequate records.

Be wary if you are approached by a new tax agent or other type of adviser proposing a potential R&D claim that seems too good to be true. Examples include that they:

can substantially increase your claim
know how to get ordinary business expenses into an R&D claim
suggest that all of the cost of developing your new products qualify as R&D.

Report any concerning behaviours to DISR or to us.

To report any concerns about an R&D arrangement, a tax agent or other type of adviser, you can:

phone us on 1800 060 062
complete the ATO tip-off form. This form is also available in the Contact us section of the ATO app.

Useful tools and documents for your claim

DISR also provides the following guidance information on business.gov.au:

Contacts

If you need more information about whether your activities are eligible, you can ask DISR for advice by:

phoning the hotline on 13 28 46
emailing them or using Web Chat on their Contact usExternal Link page.

If you need more information about whether the claimed expenditure is eligible, you can phone us on 13 28 66 between 8:00 am and 6:00 pm Monday to Friday.

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