October Deadline for R&D Activities

December balance date? A reminder of your upcoming R&D Tax Incentive lodgement deadline

Register Your Eligible R&D Activities by 31 October 2023

R&D Tax Incentive registration applications must be lodged within ten months after the end of an R&D entity’s income period. If your income year ended on 31 December 2022, you must submit your R&D Tax Incentive (R&DTI) application through the customer portal by 11:59 pm (AEDT), Tuesday 31 October 2023.

How Do I Apply for the R&D Tax Incentive?

The R&DTI portal serves as an online platform for you, and your authorised representatives to manage your company’s application process for the R&DTI.

View our step-by-step guide to accessing the R&DTI customer portal.

About the Australian R&D Tax Incentive

The Australian Government’s R&DTI program supports companies that invest in research and development activities, aiming to stimulate innovation and growth in the Australian economy. To qualify for the program, companies need to conduct or plan to conduct at least one Australian Core R&D Activity –  those that involve experiments aimed at generating new or improved materials, products, or processes. Supporting Activities can also be registered if they directly relate to an eligible Australian Core R&D Activity.

R&D Tax Incentive Offset Rates

The R&D Tax Incentive offers different offset rates depending on a company’s annual aggregated turnover. Companies with an annual aggregated turnover of less than $20 million are entitled to a refundable tax offset, equal to the company’s corporate tax rate plus an additional 18.5% premium – this could be in the form of a cash refund where the refundable offset exceeds current tax liabilities.

Companies with an annual aggregated turnover of $20 million or more are entitled to a non-refundable tax offset, equal to the entity’s tax rate plus a two-tiered premium (based on R&D intensity) of either 8.5% or 16.5%.

What Amounts Can I Claim?

Eligible R&D Tax Incentive expenditure is that which has been incurred on or directly related to one or more R&D activities and typically includes:

  • Salary and wages of employees directly involved in R&D activities;
  • Contract expenditure (labour hire, provision of services, consultants working on R&D activities);
  • Decline in value of assets used to carry out the R&D activities; and
  • Other expenditures such as overheads (rent, electricity) or materials consumed during the experimentation process.


R&D Record-keeping Requirements

When claiming the R&D Tax Incentive, it is important for companies to keep contemporaneous records to substantiate the eligibility of the activities as well as satisfy the nature and quantum of expenditure as it relates to those activities.

Recent AAT and Federal Court cases have highlighted the importance of maintaining good records that evidence how R&D Tax Incentive eligibility has been assessed and how those activities comply with program requirements and regulations. Good R&D tax governance and practices will minimise costs in the event of a review/audit and substantiate the R&D expenditure claimed.

How to get in touch and manage your R&D activities?

Simply reach out to the expert Gild R&D Incentives & Grants team and they will be able to guide you in the right direction.