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About this guide

This guide provides information about amounts that can be claimed under the research and development tax incentive.

Published 9 January 2022

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.