R&D Tax Calculator
Calculate your potential R&D tax incentive refund based on current Australian legislation. Get an instant estimate of your eligible benefits.
Business Profile
R&D Activity Inputs
Note: This calculator provides an estimate only and does not constitute tax advice. Eligibility requires AusIndustry registration and ATO assessment. Actual cash outcomes depend on the entity's full tax position, payments made and liabilities. Company tax is calculated on taxable profit (income minus expenditure), not revenue.Learn more about R&D tax incentive
Calculation Results
Enter your details in the form to calculate your potential R&D tax benefit.
📊 Example R&D Outcomes
| Eligible R&D Spend | Company Tax Position | How the R&D incentive applies | Estimated Benefit |
|---|---|---|---|
| $100,000 | $100,000 tax loss | Refundable R&D tax offset at 43.5% | $43,500 cash refund (estimate) |
| $100,000 | $50,000 tax loss | Refundable R&D tax offset at 43.5% | $43,500 cash refund (estimate) |
| $100,000 | Break-even (no profit) | Refundable R&D tax offset at 43.5% | $43,500 cash refund (estimate) |
| $100,000 | $100,000 taxable profit | Non-refundable R&D offset at 18.5% | $18,500 reduction in tax payable |
| $100,000 | $40,000 taxable profit | Non-refundable R&D offset limited to tax payable | Up to $10,000 tax reduction |
| $100,000 | Profit, tax already paid during year | Non-refundable offset reduces tax + refund of overpaid tax | Cash refund may occur |
These examples are simplified for illustration only. Actual outcomes depend on eligibility, registration with AusIndustry, ATO assessment, company structure, tax payments made and outstanding liabilities.
✅ Plain-English Scenario Explanations
Scenario 1 — Loss-making company
If your business is loss-making and has aggregated turnover under $20 million, you may be eligible for the refundable R&D tax offset.
Example:
- Eligible R&D spend: $100,000
- Offset rate: 43.5%
- Estimated benefit: $100,000 × 43.5% = $43,500
This amount may be paid as a cash refund, subject to ATO assessment and tax position.
Scenario 2 — Break-even company
Even if your business breaks even (no profit and no loss), the refundable R&D tax offset may still apply.
Example:
- Eligible R&D spend: $100,000
- Estimated benefit: $100,000 × 43.5% = $43,500
This is because the refundable offset is based on eligible R&D expenditure, not accounting profit.
Scenario 3 — Profitable company
If your business is profitable, the R&D tax incentive is generally provided as a non-refundable tax offset.
Example:
- Eligible R&D spend: $100,000
- Offset rate: 18.5% (additional benefit above normal deduction)
- Estimated benefit: $100,000 × 18.5% = $18,500
This amount reduces your company's income tax payable.
Scenario 4 — Profitable but limited tax payable
If your tax payable is less than the R&D offset amount, the offset can reduce tax to zero.
Any unused non-refundable offset may be carried forward to future income years.
In some cases, a cash refund may still occur where income tax has already been paid during the year.
Disclaimer
This calculator provides estimates only and should not be considered as professional tax advice. R&D tax incentive eligibility and calculations depend on various factors including the nature of activities, compliance with Australian Taxation Office requirements, and current legislation. We recommend consulting with experienced consultants who have successfully used the R&D tax incentive for accurate assessment and claims preparation.