SEER Research & Development

The Research and Development Tax Incentive (RDTI) encourages research and development (R&D) activities that generate knowledge for the benefit of the Australian economy. 

The Department of Industry, Science, Energy and Resources (the department), on behalf of Innovation and Science Australia (ISA), administers the R&D Tax Incentive with the Australian Taxation Office (ATO).

The Australian RDTI is a self-assessed regime and has been the Government’s primary mechanism to support innovation in Australia since 1 July 2011. The RDTI provides significant benefits to both Australian and foreign companies undertaking R&D activities in Australia. Instead of a tax deduction at the prevailing corporate tax rate, one of two R&D tax offsets is available for eligible R&D expenditures over $20,000 incurred on eligible R&D activities that have been carried on during an income year. The RDTI is a targeted tax offset program. The R&D tax offset rates and expenditure caps have changed over time, and premium rates have been coupled to the prevailing corporate tax rates commencing or after 1 July 2021. The annual R&D expenditure cap threshold has increased from $100 million to $150 million.