What the 2026 Budget Means for Your R&D Tax Claims
2026 Budget boosts core R&D tax offsets, removes supporting claims, lifts $50m threshold, tightens refunds, and raises caps, rewarding deeper innovation investment.
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2026 Budget boosts core R&D tax offsets, removes supporting claims, lifts $50m threshold, tightens refunds, and raises caps, rewarding deeper innovation investment.

Australia’s “Ambitious Australia” R&D review signals a major shift toward innovation-led growth, with stronger incentives and support for businesses investing in research and development. For SMEs and startups, this creates a significant opportunity to accelerate growth, access funding, and gain a competitive edge—provided they effectively leverage programs like the R&D Tax Incentive.

Australia’s mining sector is now a high-tech frontier, opening up major funding opportunities for startups building innovative mining and METS solutions. With programs like the R&D Tax Incentive and Accelerating Commercialisation, founders can turn R&D into real capital and get from prototype to mine site faster.

Australia is shutting the door on R&D Tax Incentive claims for gambling and tobacco-related activities from 1 July 2025, including betting tech, loot boxes, vaping, and nicotine products. The only exception is genuine harm-minimisation research—if your R&D fuels addiction rather than preventing it, government funding is off the table.

30 April 2026 is the deadline startups can’t afford to miss. If you don’t register your R&D activities with AusIndustry by then, you lose access to the R&D Tax Incentive. With strict rules and rising ATO scrutiny, the right R&D consultant can mean the difference between unlocking funding and leaving money on the table.

In 2025, the ATO and DISR are tightening compliance, focusing on genuine R&D, accurate documentation, and high-risk industries like software, construction, agriculture, and mining.

Startups in New South Wales developing innovative products can access the MVP Ventures Grant—funding of up to $75,000 to move prototypes to market-ready solutions. Engaging a consultant can maximise your chances of success by ensuring a compelling, compliant application and integrating other funding incentives.

The MVP Ventures Program 2025–2026 offers up to $75,000 in grants to help NSW startups and small businesses commercialise innovative products. With applications opening 1 September 2025, now’s the time to prepare and secure your funding boost.

Australian startups can claim the R&D tax incentive if work is done locally and they’re the true beneficiary. Smart structuring is key under the ATO’s heightened scrutiny.

The R&D Tax Incentive provides Australian manufacturers with substantial tax offsets for eligible innovation projects, such as developing new products or improving production processes. Leveraging this program can boost cash flow and support reinvestment, especially with guidance from experienced R&D advisors.

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