The Research & Development (R&D) Tax Incentive represents a generous incentive for eligible companies who expend funds on experimental activities.

The R&D Tax Incentive can potentially deliver a sizeable reduction in company tax and, in certain circumstances, generate a sizeable tax refund. This will allow your business to grow and have the cash flow to further your innovation.

Administered jointly by the ATO and AusIndustry, the R&D Tax Incentive is a rules-based entitlement program, meaning if an applicant is eligible, the applicant is entitled to the benefit.


HLB Mann Judd’s experts assist innovative businesses to manage, prepare and execute R&D Tax Incentive applications and deploy a range of processes to streamline the process.

The R&D Tax Incentive is much broader than many companies realize. It applies to R&D activities and expenditure in income years commencing on or after 1 July 2011 and has two core components:

  1. a 43.5% refundable tax offset eligible entities with an aggregated turnover of less than $20 million per annum
  2. a non-refundable 38.5% tax offset to all other eligible entities with an aggregated turnover of $20 million or more per annum.

Registrants must delineate between CORE (experimental) activities and SUPPORTING (directly related) activities in R&D projects. They must also conduct a dominant purpose test for supporting activities.

We deliver the following services related to the R&D Tax Incentive:

  • A free and anonymous online eligibility self-assessment test
  • Planning
  • Project management and compliance tools
  • Annual registration development and lodgement
  • R&D tax schedule preparation
  • R&D review and audit assistance
  • R&D advance finding – providing certainty that your activities are eligible
  • Completion of the income tax return, including R&D schedule.

Many potentially eligible companies fail to make use of this incentive due to insufficient knowledge of the eligibility requirements. Speak to one of our specialists to explore the possibilities.