This guide provides information about amounts that can be claimed under the research and development (R&D) tax incentive.
- Calculating your notional deduction
- Conditions you must meet before claiming a notional deduction
- Eligible expenditure under the R&D tax incentive
- Ineligible expenditure under the R&D tax incentive
- Other things you need to be aware of
- More information
Under the research and development (R&D) tax incentive, an amount you can claim is called a 'notional deduction'.
Amounts incurred on your R&D activities must be claimed under the R&D tax incentive. If an amount meets the eligibility requirements of the R&D tax incentive under Division 355 of the Income Tax Assessment Act 1997 (ITAA 1997), it must be claimed under that division.
If you choose not to claim it under the R&D tax incentive, you cannot claim it elsewhere in your tax return (except in certain circumstances for amounts incurred to an associate).
You can only claim a deduction under section 8-1 (or other provision) of the ITAA 1997 if the expenditure does not meet the eligibility requirements under Division 355. This means that if your R&D activities are registered with AusIndustry, you can only claim your expenditure on those activities under the R&D tax incentive.
For more information refer to section 355-715 of the ITAA 1997.