What is the R&D tax incentive?


What is the R&D tax incentive?

The R&D tax incentive is a federal government scheme designed to incentivise innovation. Essentially, the government wants businesses to take risks. It wants businesses to employ more people, spur economic growth and export goods and services to become internationally competitive. The more Australian businesses end up doing this, the better it is for all of us. 

In fact, the government estimates that for every $1 they pay out in R&D grants, $6 is returned to the economy in the form of spillover benefits.

The R&D tax incentive is the government’s tool to achieve this aim.

It provides support targeted primarily at small and medium businesses in order to help them get from the idea stage right through to successful commercialisation and running a profitable, sustainable business.

What is the benefit to claiming?

By successfully claiming the R&D tax incentive, you can get a refund of up to 43.5% of what you spend.

For example, if you spend $100,000 on R&D, you may be entitled to $43,500 in cash back.

It’s that simple.

How do I ensure I have everything I need to claim successfully?

Essentially, to successfully claim R&D, you need to be able to prove that you actually undertook the activities that you say you have. 

One of the best ways to do this is by keeping a record of your R&D experiments as they are happening.

There are many software solutions are there that can help with this such as Monday.com, weekdone.com, JIRA, Basecamp, the list goes on…

We can also provide templates that will help you with documenting your R&D projects accurately so that you can rest assured that you are ticking all the right boxes. 

The other side of the coin in terms of documentation is expenditure. We can set you up so that you’re tracking employee time and any expenses related to the project so that you know at any point in time how much you’ve spent on R&D for the year and, more importantly, how much you’re likely to be getting back.

How will Grants for Growth help me?

We can assist you from end-to-end in claiming the R&D grant and do most of the heavy lifting for you.

Specifically, we can:

  • Review your business for the year
  • Identify and scope out with you which activities may qualify as R&D
  • Review your internal documentation to substantiate the claim well
  • Prepare the necessary R&D project documentation for claiming
  • Calculate any eligible R&D expenditure while ensuring we don’t miss out on a dollar and maximise your claim for you
  • Prepare and lodge the R&D registration form
  • Prepare the R&D tax schedule that will form part of your tax return lodgement at year end
  • Provide a claim summary report at the end of every claim so that you understand what we’ve done and why and you can rest knowing that your risk has been mitigated as much as possible
  • Respond to requests for information or R&D audits from either the ATO or AusIndustry


“The team at Grants for Growth are very knowledgeable and they put in the extra time needed to really understand our projects and the context of what is being worked on. They also work well to deadlines and make sure things are done when they say they will be. A bonus is that they’re also nice humans. I would definitely recommend claiming R&D through Grants for Growth and have done so in the past.”

Kohen Grogan

Founder and Managing Director, Yappy Group