Research and Development Tax Incentive (R&DTI)

Funding available

Refundable tax offset of 18.5%–43.5% of eligible R&D spend

Deadlines

Register within 10 months of the end of your company's income year (e.g. 30 April for a 30 June year end).

Who it's for

Australian companies of any size conducting genuine research and development that involves experimentation to resolve technical uncertainty.

Overview

The Research and Development Tax Incentive is the Australian Government's flagship program for business innovation. Rather than a competitive grant, it provides a tax offset for eligible R&D expenditure — making it one of the most accessible and predictable sources of non-dilutive funding for Australian companies.

For companies with aggregated turnover under $20 million, the offset is refundable, meaning you can receive the benefit as a cash refund even if you're not yet profitable. This makes the R&DTI especially valuable for early-stage startups investing heavily in product development.

Eligibility

• Incorporated Australian company (R&D entity) — sole traders and most trusts are not eligible
• Conducting eligible "core" or "supporting" R&D activities involving genuine experimentation
• Aggregated turnover and R&D expenditure thresholds determine the offset rate
• Activities must be registered with AusIndustry within 10 months of the end of the income year

How to apply

The R&DTI is a self-assessment program with two steps. First, register your R&D activities with AusIndustry (via the R&DTI customer portal) within 10 months of your income year end. Registration is not approval — it's a record of the activities you intend to claim.

Second, claim the offset through your company tax return using the ATO's R&D schedule. Because the program is self-assessed, strong contemporaneous documentation of your experiments, hypotheses, and results is essential to withstand any review.

Official source & application portal: https://business.gov.au/grants-and-programs/research-and-development-tax-incentive
Content last verified 2026-09-01. Always confirm current details, amounts and dates with the funding body before applying.