R&D Tax Facts 2026 Issue 3
Authors: Shaun van Dijk, Dale Prebble
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. More detailed articles on government funding programs and strategies can also be found on the Insights section of our website.
Upcoming RDTI Deadline
For businesses with a 31 December year end, the opportunity to register eligible R&D activities undertaken been 1 January and 31 December 2025 is closing soon. The registration deadline for this period is Wednesday 4th November 2026.
If you are a December year end business planning to claim the RDTI via your income tax return for 2025, the first step is to register your eligible R&D activities through the RDTI customer portal prior to this registration deadline.
To assist, see below some important considerations as this deadline fast-approaches:
Setup or check your RDTI customer portal authorisation access
To submit registrations through the portal you must be authorised. The process for setting this up depends on your relationship to the applicant company. If you have already configured authorisations, check whether they have expired. You can review and update portal access through the Relationship Authorisation Manager.Make sure the head entity is registering activities
For consolidated groups, the head entity must register R&D activities for itself and all subsidiaries that form part of the tax consolidated group. If a subsidiary conducts R&D outside the consolidated group, it must register separately. Using the wrong entity’s ABN in the portal may lead to your application being withdrawn.Read the RDTI application form guidance before you begin
Significant changes to the process of registering R&D activities were made in August 2025. As a result, the scope of information that needs to be submitted has been expanded with new questions in the Application Form. We recommend reviewing the R&D Application Form guidance material before starting your application to ensure you understand the questions asked and the information that needs to be provided.
We recommend actioning this urgently given the time and scope of information needed to complete R&D activity registration.
Applications for advance and overseas findings closing in December
There is another RDTI deadline that December year end companies should be aware of. Applications for Advance and Overseas Findings for R&D activities conducted between 1 January to 31 December 2026 income year will close on 31 December 2026.
Overseas findings are mandatory if you wish to claim the R&D tax offset on any R&D activity conducted overseas.
Advance findings are not mandatory but can give you certainty about whether your R&D activities are eligible for a period of up to 3 years.
Updated RDTI sector guidance now available
Updated RDTI guidance is now available for businesses conducting R&D in the AI software development sector, agrifood sector or the biotechnology and medical sciences sector.
These guides provide insights into how the regulators of the RDTI program intend to apply the legislative requirements to particular sectors, including common risk areas and relevant exclusions. They also provide examples of records that may demonstrate eligibility and outline hypothetical scenarios explaining how the eligibility criteria are applied in practice.
To read these and other sector-specific guidance, visit the Sector guides for R&DTI applicants page.
We have recently published articles on the updated sector guidance for AI development and the Agrifood sector. These articles can be accessed through the links provided below.
New AI Guidance Released for the R&D Tax Incentive — Intellect Labs
Consultation on draft changes to RDTI legislation have now closed
As part of the next stage of proposed RDTI reforms, announced in the 2026–27 Federal Budget, draft legislation has been released with a subsequent consultation process closed on 28 September 2026.
The draft legislation, if accepted, would implement a range of changes with the stated goal of simplifying the program, encouraging additional business investment in R&D and improving the long-term sustainability of the RDTI. These reforms include:
increased offsets for eligible core R&D activities
removal of the eligibility of supporting R&D activities
reducing the intensity threshold for the non-refundable offset to 1.5%
increasing the turnover threshold for the refundable offset to $50 million
increasing the minimum expenditure threshold to $50,000
increasing the maximum expenditure threshold to $200 million
limiting refundability to firms up to 10 years of age, with an extension for up to 15 years for eligible firms undertaking R&D activities related to therapeutic goods.
The changes are proposed to apply to income years starting on or after 1 July 2028. Until then, the program will continue operating under the current rules.
We prepared and submitted our views of the proposed reforms during the consultation period which can be accessed here.
The 2023-24 ATO transparency reports have now been released
The ATO published the latest RDTI transparency report in September 2026.
The report includes data from RDTI claims made for the 2023–24 financial year. It also covers outstanding or amended 2022–23 and 2021–22 claims not published in the previous reports for income years beginning on or after 1 July 2021.
For more information visit the ATO webpage R&DTI transparency reports.
Upcoming RDTI information session – Wednesday 4th November 2026
If you are new to the RDTI, or looking to refresh your understanding of the program, join this upcoming information session for an overview of the application process.
Co-hosted by the Department of Innovation Science & Resources and the ATO, this session provides practical guidance to help you understand program eligibility, self-assess your R&D activities and identify the information you need to lodge a clear and complete application.
Upcoming ATO forum – Wednesday 28th October 2026
This forum is an opportunity to hear directly from ATO representatives about the RDTI program. The session will cover:
an introduction to the RDTI
program updates
the role of tax agents in maintaining the integrity of the RDTI
how to make claims with confidence and avoid common mistakes.
The forum also includes a live Q&A session where participants can ask questions to support their understanding of the program.
