Who must register R&D activities for the R&D Tax Incentive?
The applicability test for Register R&D activities for the R&D Tax Incentive (ATO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if you claim the R&D Tax Incentive. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
Companies must register R&D activities with AusIndustry within 10 months of the end of the income year.
The R&D Tax Incentive is administered jointly by AusIndustry (registration of activities) and the ATO (tax offset). Companies with annual turnover <$20M receive a refundable offset; others a non-refundable offset. Activities must meet the 'core' and 'supporting' R&D tests. Documentation requirements are intensive.
The applicability test
Applies only if you claim the R&D Tax Incentive. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Companies claiming the R&D Tax Incentive.
What triggers it: Conducting eligible R&D activities.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (6 of 35: only if a further fact applies; 29 of 35: no).
| Industry | Answer |
|---|---|
| Fintech (non-bank) | Only if a further fact applies |
| Medical devices & therapeutic goods | Only if a further fact applies |
| Manufacturing | Only if a further fact applies |
| Agriculture, forestry & fishing | Only if a further fact applies |
| Mining & resources | Only if a further fact applies |
| Software & SaaS | Only if a further fact applies |
| No | 29 other industries |
Business structure and size
| Structure | Answer in the 6 industries it can reach, any size | Engine's reason (fintech (non-bank), 6–19 employees) |
|---|---|---|
| Sole trader | No | Requires a trigger outside this questionnaire |
| Partnership | No | Requires a trigger outside this questionnaire |
| Trust | No | Requires a trigger outside this questionnaire |
| Pty Ltd company | Only if a further fact applies | Only if you claim the R&D Tax Incentive |
| Public company | Only if a further fact applies | Only if you claim the R&D Tax Incentive |
| Not-for-profit (unregistered) | No | Requires a trigger outside this questionnaire |
| Registered charity | No | Requires a trigger outside this questionnaire |
| Super fund | No | Requires a trigger outside this questionnaire |
| Foreign company | No | Requires a trigger outside this questionnaire |
Size does not change the answer in the 6 industries it can reach: at every size band the answer is "only if a further fact applies".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
- Pty Ltd company in fintech (non-bank) with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you claim the R&D Tax Incentive.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has an incorporated company and industry: Software & SaaS / Manufacturing / Medical devices & therapeutic goods / Agriculture, forestry & fishing / Mining & resources / Fintech (non-bank). It then applies only if you claim the R&D Tax Incentive. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Registration within 10 months of end of income year.
- Frequency
- Annual
- Evidence to keep
- Activity registration, contemporaneous records, technical evidence, expenditure substantiation.
- Status
- Current
- Priority
- High
Penalty for not complying
Maximum penalty: Tax shortfall + interest + recklessness/intentional disregard penalties up to 75%.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Enforcement examples
Where it sits in the corpus
Rules Mate tracks 37 published obligations tagged "tax", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 7 of those apply outright. This obligation is rated high priority, and is a annual obligation.
Regulator, legislation and tools
Regulated by Australian Taxation Office.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
ITAA 1997: Modern federal income tax statute (replaces ITAA 1936 progressively).
Free tools that help with this obligation:
Questions
- Who must register R&D activities for the R&D Tax Incentive?
- Applies only if you claim the R&D Tax Incentive. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Do sole traders need to register R&D activities for the R&D Tax Incentive?
- No. Looking in the 6 industries it can reach and every size band, the engine's answer for a sole trader is: no.
- Do businesses with 1–5 employees need to register R&D activities for the R&D Tax Incentive?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "Register R&D activities for the R&D Tax Incentive" due?
- Registration within 10 months of end of income year.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.