Companies are now able to register R&D Activities conducted during the year ended 30 June 2026 (FY26) with The Department of Industry, Science and Reources. There were significant changes made to the R&D application form in August 2025 (for FY25 claims) however it is expected that there are no major changes for the FY26 R&D Application. We understand that the R&D activity disclosure requirements for FY26 are not materially different to the latest FY25 application form. Additionally, since the major changes for calculation of […]
In the Federal Budget handed down on 12 May 2026, The Government proposed major structural changes to the R&D Tax Incentive (RDTI). These changes are proposed to commence on 1 July 2028. Proposed reforms include: Increasing the offset for experimental ‘core’ R&D by around 25 to 50 per cent and removing eligibility for expenditure that only supports R&D. The intensity threshold will reduce from 2 per cent to 1.5 per cent, providing higher offsets to firms undertaking substantial core R&D. Expenditure […]
In recent years, claims related to AI activities have increased, and as expected, DISR has published new specific guidance for the sector. The new guidance released in June 2026 complements the Hypothetical Machine Learning case study issued in 2024. Some key extracts from the June 2026 guidance includes: Using an AI model or technique that is new to you does not, by itself, mean the activity is eligible for the program. For an AI-related activity to be eligible as a core R&D […]
A federal court case, with a judgement dated 28 May 2026 has declared that a respondent contravened s 290-50(1) of the TAA regarding several taxpayer schemes involving the R&D Tax Incentive. The R&D Tax Incentive has been a focus of the TPB and ATO in recent years, with several published matters involving the promotion and misuse of the incentive to make aggressive or invalid claims. Substantial penalties can be imposed and should significantly deter advisors and companies seeking to misuse the benefits available […]