R&D Tax Incentive Australia


Companies that are developing new products or processes, or improving existing ones, are entitled to favorable tax treatment. Depending on turnover levels, companies can get either 10% or 15% of their expenditure back as a reduction in their tax bill.


Small companies that are developing new products or processes, or improving existing ones, and that are not tax-paying, can get a cash payout from the ATO. The payout is 45% of their expenditure.

What is the R&D Tax Incentive?

The R&D Tax Incentive is one of the federal government’s mechanisms to support companies to achieve greater competitiveness, drive innovation and enhance Australian capabilities. The Incentive’s eligibility criteria are intentionally broad, as the government wanted the incentive to be available to a wide range of industries and to companies of all sizes.

The government currently provides approximately 12,000 companies with $2 billion worth of funding through the Incentive. However, there are many companies that are unaware that the work that they are doing would actually qualify for this funding, and are therefore missing out on money that they are legitimately entitled to. The Incentive is unlike most grant programs, which are generally competitive in nature. As long as your company meets the eligibility criteria it automatically gets the funding.

The Incentive is administered by two government organisations; the ATO and AusIndustry. Companies need to interact with both organisations to get the funding, and each organisation has its own unique requirements, processes, deadlines and paperwork.

Our process is as follows:

  • Educate companies about how to access their full entitlement from the Incentive
  • Identify both the ‘obvious’ and the ‘non-obvious’ activities that qualify
  • Prepare all necessary documentation to maximize the chances of success
  • Analyse expenditure that qualifies for the Incentive to ensure approval by the ATO
  • Navigating any interactions with AusIndustry and the ATO.

If you are developing new products or processes, or improving existing ones, the Catalyst Solutions offering helps to claim your full entitlement from the Incentive.

How Catalyst Solutions can help

Catalyst Solutions is a specialist consultancy that offers a focused, efficient and value adding service offering. Our team has qualifications in science, IT, engineering, accounting and law, as well as experience in assisting companies across all industries to access the Incentive. We leverage off our multidisciplinary skill set to ensure that our clients maximize their legitimate entitlement to the government funding, whilst ensuring that the claim process minimizes disruption to their business.


Dave Corbin is the Managing Director of Catalyst Solutions Asia Pacific. He is a member of the Institute of Chartered Accountants Australia and has a Bachelor of Science. Dave was previously a Senior Manager in the R&D Incentives team of one of the Big 4 accounting firms. He has assisted companies from all industries to access government funding for their R&D for over 8 years and across 3 continents.

Dave is always keen to discuss whether your company may be eligible for the Incentive and, if so, how the Catalyst Solutions team can work with you. Please contact him on + 61 2 9437 3654 or at dave@catalystsolutions.com.au.