Your business records must be sufficient to verify the amount of the expenditure incurred on R&D activities, the nature of the R&D activities and the relationship of the expenditure to the activities.
You should keep documents to show how you apportioned expenditure between your eligible core R&D activities and supporting R&D activities as opposed to your other non-R&D activities. It is your responsibility to satisfy us that you use reasonable methods to differentiate between your expenditure on R&D activities and your expenditure on non-R&D activities.
Specific R&D records
You will need to retain documents such as reports detailing the R&D activities you carried out, who conducted the R&D activities and the time your staff spent on the R&D activities.
Records must generally be kept for a minimum of five years. A penalty may be imposed if proper records are not kept.
You can find more information about keeping records to substantiate registered R&D activities, on AusIndustry's websiteExternal Link.
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To run your business efficiently it is essential that you keep accurate records. In order to claim the R&D tax incentive, you must also keep specific records that demonstrate the relationships between your expenditure and your R&D activities.