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Budget 2018


Another budget brings another proposed overhaul to the R&D Tax Incentive. While the status quo is being maintained for the 2018 financial year, a raft of changes are being introduced as part of the budget in an effort by the federal government to curtail the rapidly growing cost of the program.

The proposed changes are driven by three primary policy objectives:

  • Improved integrity of the R&D program and associated compliance by AusIndustry/ATO
  • Increased focus on the proportion of R&D expenditure incurred by larger companies
  • Continued support for startups and early stage development

Should the changes successfully pass through the Senate from 1 July 2018 companies seeking to claim the R&D Tax Incentive will be subject to the following:

  • Companies with an annual turnover of less than $20 million will receive a refundable R&D offset of 41%, capped at $4 million each year
  • Companies with turnover greater than $20 million will be subject to an ‘R&D Intensity’ test based on the portion of R&D expenditure as a proportion of the company’s total expenditure
  • Depending on the level of intensity and company tax rate, companies with turnover greater than $20 million will receive a non-refundable offset between 31.5% and 42.5% (greater the intensity, the higher the rate)
  • Annual threshold on R&D expenditure eligible for a tax offset to be raised from $100 million to $150 million.
  • Stronger compliance and administrative improvements to be implemented to improve the integrity of the program
  • Increased funding for “enforcement activity” by the ATO and AusIndustry
  • Increased transparency by enabling the ATO to publicly disclose claimant details and the R&D expenditure they have claimed

Please note that at present there are no expected changes for applications lodged relating to the financial year ended 30 June 2018. However, given the indication of increased compliance it is recommended that businesses place greater focus on having and maintaining sufficient supporting documentation for substantiation purposes.

The experienced team at RADBE Consulting are on hand to provide advice, assist with application preparation and ensure our clients get all that they deserve. Please contact us on (07) 3216 6242 or for additional information on this grant as well as others your business may be eligible for.


Latest News

R&D Update: 2020-21 Application Deadline

Please see some important timeline updates from RADBE about the R&D Tax Incentive over the coming months.

2020-21 R&D Closing Soon
There are only 3 months remaining to finalise your R&D application for the 2020-21 financial year. R&D Tax Incentive claims for the 2020-21 financial year close in April 2022, please 
contact us or your RADBE Consultant if you are interested in pursuing a claim. 

New AusIndustry Requirement – Portal Access
The Australian Government now require all R&D Tax Incentive applications to be made through the designated AusIndustry portal. Detailed instructions can be found 
here. If you are not an established myGovID user for your business, this process may be lengthy and may impact our ability to submit an application by the deadline if not addressed soon.
Conducting R&D activities offshore?
An Overseas Finding is required where an eligible R&D activity is unable to be conducted in Australia and is subsequently undertaken overseas (excluding purchase of raw materials, off-the-shelf products, etc.). It is necessary to lodge an Overseas Finding prior to the end of the claim period (i.e. 30 June 2022) and typically occurs when facilities, equipment, environmental or biological features are not available in Australia. If you think that this may apply to you, please contact us for more information.
Doing R&D under a New Zealand company?
RADBE is now processing claims under New Zealand’s recently implemented R&D scheme, with pre-registration for 2021-22 due by May 7, 2022.

If you would like more information regarding any of the above, please
contact us.

Business Ignite Project CLOSING SOON

The Queensland Government is committed to opening Queensland back up for business in the wake of COVID-19, funding a free business education program designed to help navigate economic impact.

The program is available to small business owners, their staff, aspiring and previous operators. It provides access to online resources, including libraries, materials, activities, classes, workshops, courses, e-books, templates and tools to assist businesses in understanding and navigating a response and build a stronger future.

The program is valued at upwards of $5,000 per user, and includes coverage of:

  • Content Creation
  • Digital Marketing
  • Accounting and Finance
  • Branding and PR
  • Digitising Your Business
  • HR and Recruitment
  • Supply Chain
  • Business Basics
  • Pivot Opportunities
  • Scaling Your Business
  • Mindset and Growth
  • Networking Opportunities
  • Support and Mentoring

Contact us for more information.

Update: R&D Changes 2021

The R&D Tax Incentive is undergoing a number of reforms as part of the 2020-21 Federal Budget, including increased benefits for the 2021-22 financial year. Find out more here.

Kia ora, R&D in NZ

RADBE is now providing RDTI services in New Zealand, find out more information here.

RDTI Concerns Raised in Estimates 26/02/19

The research and development tax incentive (RDTI) was a main focus during the Department of Industry’s appearance at senate estimates on Thursday afternoon.

New RDTI Guidance Article

The guidance outlines how companies undertaking software development will have to be more specific with making sure that activities meet the government’s definition of research and development, and keep better records of the activities...

September Update for State based Government Grants


In the 2018 budget the Queensland Government injected an additional $73 million over 4 years into the Advance Queensland Program bringing the total available funds to $650 million. 


Budget 2018

New information relevant to Federal Government Grants August 2018

Australia, New Zealand, and the United Kingdom
| +61 7 3216 6242
Head Office | Level 2, Building 2, 50 McDougall Street, Milton, Queensland, 4064 (Australia)
Postal | PO Box 2380, Milton Queensland, 4064 (Australia)


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