EOFY R&D Tax Incentive Considerations
Authors: Dale Prebble, Shaun van Dijk
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. From Advance Findings and associate payments through to evolving documentation expectations and changes to the registration process, proactive EOFY planning can significantly reduce risk and improve the efficiency of your future R&D claim. Provided below are the key items you should be across.
Advance Findings
If you’re unsure whether your planned or ongoing R&D activities are eligible under the R&D Tax Incentive, an Advance Finding can provide valuable upfront clarity. It’s a binding, 3-year determination from the regulator confirming whether your activities qualify for an R&D Tax Incentive. It is especially useful for long-term or complex projects, first-time claimants, or where eligibility is uncertain.
To be valid for FY2026, applications must be lodged by no later than 30 June 2026. An FY2026 Advance Finding would also provide coverage for FY2027 and FY2028 R&D activities.
There are no extensions or exceptions for late applications. You can read more in our article, The Pros and Cons of Advance Findings for the R&D Tax Incentive.
As regulation and complexity of the R&D Tax Incentive program continue to increase, an Advance Finding should be in consideration as a viable for strategy for securing approval of your R&D tax entitlements.
Overseas R&D Activities
Expenditure on overseas R&D activities can only be claimed in specific circumstances. Most critically, to claim any eligible overseas R&D activities in FY2026, an Overseas R&D Finding must be prepared and lodged by no later than 30 June 2026. Failure to do so will exclude you from being able to claim any expenditure on overseas R&D activities for FY2026.
For guidance on how to approach this process, see our article, How to Successfully Navigate the Overseas Finding Process for R&D Tax Incentives.
Payments to associates
R&D expenditure that is incurred to an associate can only be claimed for R&D tax purposes to the extent that these amounts are physically to constructively paid prior to EOFY.
In broad terms, associates are those entities (individuals or businesses) that hold a majority voting interest, or because of family or business connections might be regarded as sufficiently influencing the decisions of the company. This can include entities within a corporate group or with shared owners, or a Director within the business.
It is critically important that any R&D related expenses incurred to associates are physically paid prior to 30 June 2026 if you intend to include these amounts in your upcoming FY2026 R&D Tax Incentive claim.
Updated R&D Tax Incentive Application Form
Companies planning to register their R&D activities should also be aware of significant changes to the R&D Tax Incentive application form. The new form includes expanded project-level disclosures, additional activity questions and increased expectations around the technical detail provided to regulators.
These changes have significantly increased the scope of information required for many claimants to register their R&D projects and activities. As a result, early planning is more important than ever to ensure you are well-positioned to navigate the additional and expanded questions.
In our view, any companies looking to complete their R&D Application Form and secure their R&D refund early in the new financial year should already be well-progressed with compiling this information!
Documentation
Robust contemporaneous documentation remains one of the most important foundations of a defensible R&D Tax Incentive claim. Businesses should ensure technical records, testing evidence, meeting notes, design iterations and financial documentation are being prepared and maintained as R&D activities occur, not retrospectively at claim time.
With regulators placing greater emphasis on evidencing experimental progression, technical uncertainty and the nexus between expenditure and eligible activities, the lead up to EOFY is an ideal time to review whether existing documentation practices are fit for purpose.
We are continuing to help companies we work with implement enhanced, tailored documentation frameworks to better align record-keeping practices with current regulator expectations.
Prepaid expenses
A final EOFY consideration is to review the rules regarding prepaid expenses to determine if these can be included to maximise your FY2026 R&D Tax Incentive claim. Prepaying certain expenses before 30 June might be beneficial, but it's important to understand the specific requirements and limitations that apply.
Please contact your friendly neighbourhood R&D tax advisers at Intellect Labs if you need help prior to 30 June, or if you’re keen to complete an FY2026 claim early in the new financial year.