Original or amended schedule
If you have already lodged a Research and development tax incentive schedule 2026, print X in the box at Amended schedule. Otherwise, print X in the box at Original.
Company name
Write the name of the company lodging the Research and development tax incentive schedule 2026. The name you write on the schedule must be the same as that shown on the company's tax return.
Tax file number (TFN)
Write the TFN of the company lodging the Research and development tax incentive schedule 2026. The TFN you write on the schedule must be the same as that shown on the company's tax return.
DISR – IISA
Write the DISR –Industry Innovation and Science Australia (IISA) registration number issued to you for registered R&D activities for 2025–26. If you're only claiming expenditure incurred to an associate in an earlier income year that you paid in the current year, you need to include your DISR–IISA registration number for the income year that registration was obtained for the related R&D activities. For the period you're part of a consolidated group, only the head company should apply for registration under the R&D tax incentive.
Australian business number (ABN)
Write the ABN of the company lodging the Research and development tax incentive schedule 2026. The ABN you write on the schedule must be the same as that shown on the company's tax return.
Preliminary calculation – Add back of R&D accounting expenditure
At label D Preliminary calculation write the total of the amounts that you show as expenditure in item 6 Calculation of total profit or loss in the Company tax return 2026 that relate to amounts that you're claiming as a notional R&D deduction under the R&D tax incentive provisions. Generally, these amounts include expenditure for accounting purposes on R&D activities, which are used in calculating the R&D tax offset, rather than being claimed as allowable deductions.
Also include at label D:
- any book depreciation expenses for assets used in activities which are subject to the R&D tax incentive that were included at item 6 – label X Depreciation expenses (any amounts not subject to the R&D tax incentive must be included at item 7 – label W Non-deductible expenses).
- amounts that you have included at the expenditure labels at item 6 calculation of total profit or loss that you have claimed as a notional R&D deduction under the R&D tax incentive provisions in a previous year.
- amounts that you show as expenditure in item 6 Calculation of total profit or loss in the Company tax return 2026 which you have incurred to your associates that aren't yet paid or claimed and are to be carried forward. For more information, see Part C – R&D expenditure to associates.
The Income and Expenses amounts you show at item 6 Calculation of total profit or loss are accounting system amounts that correspond to the amounts in your financial statements. Don't include accounting fees here.
Example 1: Notional deductions included as accounting expenditure
Company XYZ has included $500,000 of expenses for accounting purposes, in item 6 calculation of profit or loss in the Company Tax Return for the year. Of this amount, $100,000 qualifies as notional deductions under the R&D tax incentive. Company XYZ will need to include $100,000 at label D Preliminary Calculation and Item 7, Label D Accounting Expenditure in item 6 subject and to R&D tax incentive in the Company Tax Return if it is claiming an R&D notional deduction for this expenditure, rather than an allowable deduction.
The amount you show at item D Preliminary calculation must be the same as the amount you write at item 7 Accounting expenditure in item 6 and subject to R&D tax incentive – label D in the Company tax return 2026.
If you don't show expense amounts for R&D deductions and R&D expenditure to associates to be carried forward at item 6 Calculation of total profit or loss in the Company tax return 2026 (if, for example, those amounts are capitalised for accounting purposes) write zero at both:
- item D Preliminary calculation in the Research and development tax incentive schedule 2026
- item 7 Accounting expenditure in item 6 subject to R&D tax incentive – label D in the Company tax return 2026.
End of example
Example 2: Notional deductions not included as accounting expenditure in current year
Company UVW capitalised $30,000 for accounting purposes, which the company will claim as a notional deduction for the R&D tax incentive in the year. This amount is not included as an expense for accounting purposes, in item 6 calculation of profit or loss in the Company Tax Return in the current year.
If company UVW is claiming a notional deduction for the $30,000 in the current year, the company will include zero at label D Preliminary Calculation and Label D Accounting Expenditure in item 6 subject to R&D tax incentive because the capitalised amount is not included at item 6 of the company tax return as an expense. In future years, Company UVW will need to remove any expenses included in item 6 of the Company Tax Return relating to the $30,000 previously capitalised and claimed as a notional deduction (as it is expensed for accounting purposes).
End of example
Continue to: Part A – Calculation of notional R&D deduction
Return to: Instructions to complete the R&D tax incentive schedule 2026