July, 2026

Recent media coverage over concerns for proposed 10 year limit to Refundable R&D Tax Offset Eligibility

July 13th, 2026

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 on […]

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Law now passed to exclude tobacco and gambling activities from eligibility under R&D Tax Incentive

July 2nd, 2026

The December 2024 Mid‑Year Economic and Fiscal Outlook (MYEFO) was released by the Government on 18 December 2024 and announced that The Government will exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility for income years starting on or after 1 July 2025. This proposal can probably be linked to the transparency reporting of R&D claimants and public reaction regarding large claims made by gaming software companies.   The Government then released an exposure draft in December 2025, […]

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FY26 R&D Activity Registrations Now Open

July 1st, 2026

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 […]

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Representatives from Australia’s biotech and health tech sector express concerns on proposed changes to Refundable R&D Tax Offset

June 22nd, 2026

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 […]

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