• Research and development record keeping

    To work out your notional R&D deduction and support your claims, you need to keep records to show all of the following:

    • how the expenditure you have incurred relates to the R&D activities you have registered
    • how you have apportioned your expenditure between eligible R&D activities and ineligible activities
    • that you receive the major benefit from the R&D activities
    • when amounts have been paid to associates
    • how you have calculated adjustments required as a result of either  
      • receiving a government recoupment (clawback)
      • producing a marketable product (feedstock adjustments).

    These records must be relevant to the year you are claiming your R&D tax offset. However, if you need to make adjustments these records may also be relevant for future years.

    You must keep up-to-date records for each R&D activity so you are ready to calculate and claim your R&D tax offset in your company tax return at the end of the year.

    The records you currently keep for your business will generally be enough to support your R&D tax offset claim, if they show:

    • you incurred the expenditure (and if incurred to an associate the amount(s) paid)
    • the expenditure was eligible for the R&D tax incentive
    • you received the major benefit from your expenditure on R&D activities
    • the amount of your expenditure that relates to the R&D activities you have registered with AusIndustry.

    You must also be able to support your methodology for apportioning your expenditure between eligible R&D activities and non-eligible activities.

    Direction icon

    For examples of records you may need to keep in relation to your R&D activities, visit the AusIndustry website and refer to R&D Tax IncentiveExternal Link.

    Danger icon

    It is your responsibility to show us that the basis for calculating your notional R&D deduction produces, as far as practicable, accurate claims consistent with the law and its interpretation. You must be able to substantiate your claims for R&D expenditure with your records.

      Last modified: 19 Jun 2012QC 26104