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About the R&D tax incentive

The R&D Tax Incentive operates as a tax credit, rewarding businesses and individuals who perform R&D activities.

Key features include a:

  • 15% tax credit available from the beginning of a business’ 2020 tax year
  • minimum eligible R&D expenditure of $50,000 a year
  • maximum eligible R&D expenditure of $120 million a year
  • definition of R&D to span more sectors
  • limited form of refunds in the first year.

The sole purpose of research and development is to seek to solve scientific or technological uncertainties.

You must be eligible in all three of the following criteria to qualify. Find out more about whether you could be eligible here:

Eligible R&D activities

Eligible R&D entities

Eligible R&D expenditure

Research in the following fields is excluded from eligible R&D:

  • social sciences
  • arts
  • humanities
  • market research for your product or service.

For more information about the incentive, consult the guidance material.