Software development

The ICT sector is a key enabler of business and innovation, and is central to services, processes and products across virtually all sectors of the economy.

The information in the following documents and videos can help to clarify the eligibility of ICT-related activities under the R&D Tax Incentive.

Guidance and examples of eligible activities

  • ICT and the R&D Tax Incentive

    This reference document contains hypothetical examples of companies developing software, 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 information on the types of activities excluded from being core R&D activities.

  • animation still from windwake example video

    Windwake

    This animated hypothetical business scenario shows how a company developing software to model wind noise to evaluate the siting of wind farms can apply for the R&D Tax Incentive.

  • Getting software development 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 software development activities under the R&D Tax Incentive.  This document highlights:

    • some common errors that the department has noted in software development registrations
    • specific types of software development activities that are not of themselves core R&D activities.

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

    This guide helps you with 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.

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