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DISR Announces Changes Streamlining R&D Activity Compliance Assessment Processes

In a recent update, The Department of Industry, Science and Resources (DISR)’s Insider email has noted that:

• From 1 July 2025, the Department of Industry, Science and Resources (DISR) will be streamlining some of our processes to remove duplication and unnecessary steps that can cause confusion and contribute to delays in finalising program decisions with you.  Recent feedback from you as well as decisions from the Administrative Review Tribunal have highlighted that some of our processes can be confusing. Much of this feedback has centred around the timeframes and processes for obtaining certainty about eligibility.  We have listened to that feedback and from 1 July we will be progressively implementing streamlined processes designed to improve your interactions with us. These include:
  • A more efficient approach to conducting examinations which will:
    • Reduce duplicative requests for information, helping save you time and money;
    • Deliver decisions around eligibility much sooner.
  • Being more systematic in limiting the use of examinations to circumstances when eligibility risks appear highest;
  • Reducing instances of applications being held ‘in review’ prior to registration, helping to reduce the time it takes to register your application and aligning more closely with our service level agreements;
  • Information about what to expect when you interact with us can be found in the R&DTI program charter. If you have questions about how we are streamlining our processes, contact your case manager. 

In recent forums, it has also been noted that moving forward, when assessing the eligibility of activities in R&D Applications, DISR will primarily (or only) use a formal process referred to as an examination when engaging with companies to assess compliance of their R&D Activities.

We understand that more ‘lighter touch’ compliance processes used in the past such as guidance or educational discussions are no longer a feature of the R&D Tax Incentive compliance processes for assessing activities.

Swanson Reed supports the vital role that DISR serves in helping administer the programme and to assess compliance and integrity. We also support measures that may increase efficiency or reduce duplication.

We would however like to see some of the processes used by DISR in past (such as guidance or educational meetings) be retained moving forward. From our perspective, these worked very well in allowing:

• DISR to conduct an efficient discussion with companies to gather an understanding of activities, and to flag instances where a greater level of compliance activities (such as an examination) were warranted;
• DISR to provide feedback on how future applications could be improved, or to warn companies their activities may not be suitable;
• DISR to instigate examinations in cases where non-compliance was deemed a material risk;
• Companies to explain their activities first hand and for them to gather a greater understanding of the boundaries of the R&D Tax Incentive;

We will provide any updates as they become available.

Please get in touch with our office if you require assistance, would like to speak to someone about a potential claim, or check out our website for more information.