R&D Tax Incentive Guidelines
Everything you need to prepare a valid application — the information required, guiding documents, how to use the online system, and the amendments introduced from 1 January 2024.
Information required when making an application
The nature of information required in making an application for the R&D tax incentive has been kept to a minimum. The information required is in two sections:
Section 1
Company profile information
Identifies the company, contact details and any agent involved in making the application.
Section 2
Project details
Details of the proposed R&D activities used to determine the eligibility.
With respect to R&D activities, the following is required:
- To qualify for the tax incentive, the R&D activities must meet the definition of R&D in section 11D(1) of the ITA, which states that: “For the purposes of this section ‘scientific or technological research and development’ means systematic investigative or systematic experimental activities aimed at resolving scientific or technological uncertainty and the resolution of which is not readily deducible by a person skilled in the relevant scientific or technological field.”
Indicate under which subsection(s) an application is made. Whether it is for:
- Discovering new scientific or technological knowledge;
- Creating or developing new or significantly improved products, processes or services;
- Creating or developing a multisource pharmaceutical product; or
- Conducting a clinical trial.
What is the scientific or technological objective or end goal of the R&D project?
In terms of the definition of scientific or technological R&D, activities should be systematic investigative or systematic experimental. Explain the proposed scientific or technological R&D activities and how they would meet this requirement.
It is a requirement that activities relevant to the scientific or technological R&D project should be aimed at resolving scientific or technological uncertainty. Explain this scientific or technological uncertainty.
Describe how the resolution of the scientific or technological uncertainty cannot be deduced by a person skilled in the field on the basis of generally available scientific or technological knowledge or experience.
Explain the scientific or technological advancement that the project aims to achieve.
What is the prior art: what is the closest product, process or knowledge in existence to be improved on or replaced?
What are the shortcomings of such products, processes or knowledge?
How would your proposed solution differ on a scientific or technological level from such products, processes or knowledge?
What you need to know before submitting a project application for the first time
Authorised representatives (i.e. company directors or representatives, consultancy firms and industry associations) are required to create profiles for the companies they are representing before submitting a project application.
The authorised representative must have an appointment letter on the company letterhead before they can create a profile.