R&D Tax Incentive calculator
Models the Australian R&D Tax Incentive (ITAA 1997 Div 355) — refundable offset for sub-$20m turnover companies and the intensity-tiered non-refundable offset for the rest.
Company R&D inputs
Used to compute R&D intensity for non-refundable claims.
Offset outcome
Refundable offset (turnover < $20m)
- R&D intensity
- 10.0%
- Offset rate
- 43.5%
- Premium over corporate rate
- 18.5 ppt
- Notional R&D deduction (capped)
- $500,000.00
- Gross R&D tax offset
- $217,500.00
- − Foregone ordinary deduction
- $125,000.00
- Net benefit (premium × spend)
- $92,500.00
- Cash refund available
- $217,500.00
- Refundable: any unused offset is paid as cash by the ATO.
Frequently asked questions
Who can claim the R&D Tax Incentive?+
An R&D entity (broadly, an Australian company or a foreign company resident in a treaty country with a permanent establishment here) conducting eligible 'core' or 'supporting' R&D activities registered with AusIndustry within 10 months of the end of the income year.
How is the offset rate calculated?+
Companies with aggregated turnover below $20m receive a 43.5% refundable offset (corporate tax rate + 18.5 percentage points). Companies above $20m receive a non-refundable offset of corporate rate + 8.5 ppt if R&D intensity is ≤ 2%, or + 16.5 ppt above 2%.
What is the 'clawback' or net benefit?+
Because the company gives up the ordinary deduction for the R&D spend (it is added back to taxable income) and receives the offset instead, the real benefit is the offset rate MINUS the corporate rate — i.e. roughly the premium percentage points times the eligible spend.
Not tax advice. Based on ITAA 1997 Division 355 and the Industry Research and Development Act 1986. Does not model feedstock, clawback, associate payments, expenditure not at risk, or AusIndustry registration timing. The R&D regime differs from the UK's merged scheme — this calculator implements the Australian structure only.