Program Information

About the R&D Tax Incentive

The R&D Tax Incentive replaced the R&D Tax Concession from 1 July 2011. It provides targeted research and development (R&D) tax offsets designed to encourage more companies to engage in R&D.

The R&D Tax Incentive has two core components. Entities engaged in research and development may be eligible for:

  • a 45 per cent refundable tax offset (equivalent to a 150 per cent deduction) if their turnover is less than $20 million per annum provided they are not controlled by income tax exempt entities; or
  • a 40 per cent non-refundable tax offset (equivalent to 133 per cent deduction) for all other eligible entities (entities may be able to carry forward unused offset amounts to future income years).

The R&D Tax Incentive is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO).

Objectives

The R&D Tax Incentive aims to:

  • boost competitiveness and improve productivity across the Australian economy;
  • encourage industry to conduct research and development activities that may not otherwise have been conducted;
  • provide business with more predictable, less complex support; and
  • improve the incentive for smaller firms to engage in research and development.

Further Information

Further information on the program is available on the AusIndustry website, the ATO website and by accessing the following:

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