What are the requirements to be eligible for the R&D Tax Incentive in Australia?
R&D Tax Incentive Eligibility: What You Need to Know Who Can Apply for the R&D Tax Incentive? To qualify for Australia's R&D Tax Incentive , your business must be an eligible R&D entity—typically an Australian company subject to income tax. Sole traders and trusts generally don't qualify unless structured appropriately. Core Eligibility Requirements Your business must meet the following criteria: Conduct eligible R&D activities , including core experimental activities and supporting activities directly related to them Spend a minimum of $20,000 on eligible R&D expenditure per income year Follow a scientific method , involving a hypothesis, experimentation, evaluation, and logical conclusions Aim to generate new knowledge , not simply apply existing knowledge in routine ways Documentation Matters Strong record-keeping is essential. The Australian Taxation Office and AusIndustry require detailed evidence of R&D activities, expenses, and outcomes to su...