The Department of Industry Science and Resources (DISR) has recently updated its sector-specific guidance for the Agrifood sector. The new R&D Tax Incentive (RDTI) guidance provides a set of common risk areas and three worked examples covering feed formulation trials, ingredient substitution and the difference between confirmatory testing and genuine hypothesis-led experimentation.

This supplements some prominent recent disputes on the eligibility of animal production-related R&D activities and is intended to better define the ‘eligibility bar’ that claimants must clear to establish that the outcomes of R&D activities were unknown.

For foreign life sciences companies considering Australia as an R&D location, the pull of the RDTI’s 43.5% headline rate for R&D expenditure can be significant. But the devil is often in the detail. Things like the aggregated turnover test, and whether the R&D is conducted on behalf of an Australian or foreign entity, can be determinative of whether an Australian subsidiary is eligible for the full refundable rate, a materially smaller refund, or a non-refundable tax offset it may never actually benefit from.

Our R&D Tax Facts is a summary of important developments in the world of the R&D Tax Incentive (RDTI) over the last 3 months.

As the end of the 2026 financial year approaches, businesses planning to access the R&D Tax Incentive should be reviewing a range of strategic, technical and administrative considerations prior to 30 June.

The 2026–27 Federal Budget has landed. And while the headlines are dominated by major policy changes to negative gearing, CGT, discretionary trusts and other tax relief measures, there are some genuinely important developments for Australia’s R&D and innovation ecosystem.

The 2026-27 Federal Budget lands on 12 May. Before Treasurer Chalmers delivers his fifth budget announcement, we've put our cards on the table regarding which industries are positioned to benefit from serious government investment, and which will be left waiting.

Before the Budget: the Ambitious Australia R&D Tax Incentive reforms could reshape how companies access and benefit from the program. Some changes are low-cost with outsized impact, while others shift cash flow, eligibility and collaboration dynamics.

Australia’s R&D system is under review, with the Ambitious Australia Report proposing significant changes to incentives, funding models, and national coordination. We explore key themes, potential impacts, and what businesses should be watching next.

Summary of the previous quarter of developments in the world of the R&D Tax Incentive (R&DTI) program.

This is a reminder of an upcoming R&D Tax Incentive (RDTI) deadline for businesses with a 30 June 2025 year end.   

Summary of the previous quarter of developments in the world of the R&D Tax Incentive (R&DTI) program.

The R&D Tax Incentive is projected to reach $4.6B in public funding in 2026, and 86% of claimants rely on advisors to access it. That means our industry collectively helps steward almost $4B in taxpayer-funded innovation support each year. With that responsibility comes the need for practices that build confidence in the system, including clear and transparent fee models that align with the intent of the program.