What is R&D Tax Incentive?
Tax-specific. A plain-English definition for Australian business owners.
The R&D Tax Incentive is the federal scheme providing tax offsets for eligible research and development activities.
The refundable component (for entities under $20M turnover) is calculated against company tax rate plus a premium. Eligibility requires the activity to meet the definition of "core R&D activity" or "supporting R&D activity" — a substantive test that catches out claims based on routine business improvements.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.