R&D Eligibility


Companies that are liable to pay tax in Australia and are incorporated under Australian law are eligible to apply. Companies incorporated under a trust are not eligible.


Core R&D activities are experimental activities whose outcome cannot be known or determined in advance on the basis of current knowledge, information or experience, but can only be determined by applying a systematic progression of work that:

· Is based on principles of established science; and

· Proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and

· Is conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services).

Core R&D activities could be, for example, the testing of a new or improved product, device, process or service. A business must have at least one core R&D activity in order to claim.

Experiment: is what you do to test a hypothesis.  An experiment is set up so that the relationship between relevant variables specified in the hypothesis can be tested and proven either right or wrong. Experiments can take place in virtually any environment – from laboratories to manufacturing plants, to offices, farms and greenhouses.

Hypothesis: A concept, theory or idea that is tested by experimentation leading to new knowledge. A hypothesis must be targeted to that specific technical or scientific proposition that is the cause of the uncertainty of outcome.

New Knowledge: is the intended outcome of a company’s experimental activities. New knowledge can be in the form of new or improved materials, products, devices, processes or services.


The R&D Tax Incentive is a broad-based scheme. All industry sectors involved in R&D and related product development are entitled to apply for R&D Tax Incentive.

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