Insights Lab

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.

The last twelve months have been an interesting period for Queensland-based innovation funding. New programs focussed on developing sovereign capability and advanced manufacturing generated significant interest and represents opportunity for Queensland businesses with the right profile. 

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.

The Queensland and Australian Governments have launched their jointly funded $50 million Local Digital Priority Projects (LDPP) program, providing significant funding for projects that strengthen digital infrastructure, accelerate AI and digital capability, and grow South-East Queensland's technology ecosystem.

New AI guidance has arrived for the R&D Tax Incentive providing insights on how the Department of Industry, Science & Resources view AI-related R&D activities and assess alignment with R&D tax requirements. Our latest article explores the key takeaways from the new guidance and why AI continues to be one of the most complex and evolving areas of the program.

The recent 2026-27 Federal Budget was one of the most significant in recent memory, announcing reforms and changes to established economic programs and schemes in the name of long-term economic resilience. Today’s edition focusses on the impact of the budget on innovation funding via competitive grant programs.

Where will your business land under the proposed 2028 R&D Tax Incentive reforms? Revenue, company age, and tax position each play a role. We've mapped key business profiles against the six proposed changes so you can identify your position before the rules take effect.

The NSW Government has opened Round 2 of its Net Zero Manufacturing Initiative, committing up to $225 million across three funding streams to accelerate industrial decarbonisation, strengthen sovereign manufacturing capability and support the commercialisation of next-generation clean technologies.

Stacking grants with the R&D Tax Incentive can create real upside if structured correctly. It can also quietly erode your benefit if the interaction rules aren't understood. We’ve broken down how it can work in practice.

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.