The agrifood industry is a highly integrated value chain spanning the full range of food and beverage related enterprises operating from ‘paddock to plate’. Agrifood also has significant overlaps with other innovative sectors, such as biotechnology and information and communications technology (ICT).
The information in the following documents and videos can help to clarify the eligibility of agrifood activities under the R&D Tax Incentive.
Guidance and examples of eligible activities:
- Agrifood and the R&D tax Incentive
This document contains hypothetical examples of agrifood companies undertaking innovative activities, and how they self-assess their activities against the eligibility criteria for the R&D Tax Incentive. Find illustrative examples of core and supporting R&D activities, overseas activities and R&D in a production environment.
An animated hypothetical business scenario of how a company conducted experiments to develop a new line of functional bread products.
- Getting farming R&D Tax Incentive claims right
This document provides information on areas that companies and their tax advisers need to consider carefully when self-assessing the eligibility of agrifood activities under the R&D Tax Incentive. This document highlights some common errors that the department has noted in agrifood registrations.
Applying the Law
The following documents are de-identified summaries of actual findings conducted on real companies undertaking real activities. The Applying The Law (ATL) series provides examples of how the department has and will apply the law in various situations.
- No new knowledge - agriculture - 2016/02
A farming company undertook activities to improve the sustainability of a farm. The department found that the activities were not eligible for the R&D Tax Incentive because they did not generate new knowledge, as a competent professional could have determined the outcome without conducting experiment.
- Whole of farm claim - 2016/03
A farming company undertook activities to change its practices for building soil fertility into its productive land. The department found that the activities were not eligible for the R&D Tax Incentive because the scale of the claimed activity was not consistent with a significant purpose of generating new knowledge.
Interpreting the law and record keeping
- R&D Tax Incentive: Guide to Interpretation
This document explains how legislated definitions of eligible R&D activities are interpreted and applied by the department. It also explains the types of activities that are excluded from being core R&D activities. This is a key document to consult when self-assessing the eligibility of your R&D activities for the R&D Tax Incentive.
- Compliance Readiness: the importance of record keeping
A guide on record keeping and preparing effective applications for registration of your R&D activities. Record keeping is an essential requirement under the R&D Tax Incentive. You must keep appropriate records to demonstrate the eligibility of your activities.