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  • Research and development tax incentive

    We review behaviours of concern that result in incorrect Research and Development (R&D) tax offsets claims.

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    R&D tax incentive administration

    The ATO and AusIndustry (on behalf of Industry Innovation and Science Australia) jointly administer the research and development (R&D) tax incentive. The incentive aims to support companies that undertake eligible R&D activities. AusIndustry administers the registration and compliance of the R&D activities. We are responsible for the R&D expenditure claimed on the tax return.

    We focus on claims:

    • made by entities in particular industries
    • related to particular behaviours.

    Industries of concern

    Four industries of concern have been identified:

    • agriculture
    • building and construction
    • mining
    • software development.

    Particular behaviours of concern are:

    • claiming the R&D tax offset on business-as-usual expenses
    • apportionment of overheads between eligible and non-eligible R&D activities
    • payments to associates
    • whether or not expenses have been incurred
    • approaches taken by R&D consultants
    • fraudulent claims
    • failure to keep records.

    Taxpayer alerts

    For more information on the R&D incentives and industries, see our taxpayer alerts:

    • TA 2015/3 Accessing the R&D tax incentive for ineligible broadacre farming activities
    • TA 2017/2 Claiming the R&D tax incentive for construction activities
    • TA 2017/3 Claiming the R&D tax incentive for the ordinary business activities
    • TA 2017/4 Claiming the R&D tax incentive for agricultural activities
    • TA 2017/5 Claiming the R&D tax incentive for software development activities
    Last modified: 01 May 2023QC 69457