AusIndustry has released a refreshed guide on the eligibility of software development activities under the R&D Tax Incentive. Developed in collaboration with industry stakeholders—including R&D applicants, advisers, the Tech Council of Australia, and the Australian Taxation Office—this updated guidance aims to provide clarity and support for claimants navigating the program.
Key Highlights of the Updated Software Guide
Software Development Activities Are Eligible
The guide reaffirms that software development activities may qualify as eligible activities under the R&D Tax Incentive, provided they meet the program’s criteria.
Using Agile, Waterfall, or Rapid Methodologies
If your software development activities involve methodologies like Agile, Waterfall, or Rapid, you must demonstrate that these were used as part of a systematic progression of work undertaken during experimentation.
Inclusion of Routine Testing Activities
Routine activities such as data migration, bug fixes, and beta testing may be considered part of a core R&D activity if they contribute to a systematic progression of work.
Importance of Contemporaneous Documentation
The updated guide stresses the need for maintaining accurate and contemporaneous records to support your R&D claims. It also provides examples of the types of documentation claimants should retain, such as development logs, testing reports, and methodology documentation.
Access the New Software Guide
A copy of the updated software guide is available for reference. For more details or tailored advice on how these changes may affect your R&D claims, please contact your TGG advisor.
