How we turned “Not Possible” Into a Successful Advance and Overseas Finding
Esper Satellite Imagery is an Australian space technology company developing hyperspectral imaging sensors for Earth observation satellites.
Their technology captures hundreds of spectral bands – far beyond traditional RGB imaging – enabling chemical analysis of the Earth’s surface. This supports applications across mining, agriculture, and environmental monitoring.
Operating at the intersection of engineering, software, and data science, Esper’s work is both technically complex and capital intensive.
The Challenge: Overseas R&D Expenditure in a Global Industry
For Esper, innovation does not happen in one location.
While core R&D activities such as sensor development and data processing are undertaken in Australia, a significant portion of expenditure must occur overseas, including:
- Satellite bus manufacturing
- Launch services and logistics
- International engineering partnerships
These activities are essential in the space industry, but fall into a complex area of the Australian R&D Tax Incentive relating to overseas R&D expenditure.
Esper sought advice from multiple consultants and received consistent feedback that it wasn’t possible, or that they couldn’t help.
“We did speak to other consultants and a lot of them just said they can’t do it, or they don’t think we’ll succeed.” — Shoaib Iqbal, CEO & Founder, Esper Satellite Imagery
Rethinking What’s Possible
Rather than accepting that position, Esper chose to explore whether a different outcome was achievable.
Despite being highly relevant for deep-tech and capital-intensive industries, Advance and Overseas Findings (AOF) remain underutilised in Australia.
“Advance and Overseas Findings are a great way to gain certainty about the eligibility of your R&D claim and capture expenditure that may be missed in the normal R&D process.” — Richard Wraith, Head of Innovation & Grants, Matthews Steer
Esper had not seen comparable companies in the space sector successfully navigate this process. In many cases, businesses were either unaware of the opportunity or advised not to pursue it.
This created a gap between what was assumed to be ineligible and what may actually be achievable with the right approach.
For Esper, the opportunity was significant. If successful, it would allow them to bring a major portion of their expenditure into scope under the R&D Tax Incentive.
The Opportunity: Advance and Overseas Finding (AOF)
An Advance and Overseas Findings (AOF) allows businesses to claim overseas R&D expenditure where they can demonstrate:
- Why activities must be conducted overseas
- Why equivalent capability is not available in Australia
- How those activities directly relate to eligible R&D
Given the scale of Esper’s international spend, this represented a high-value and technically complex AOF application, clearly articulating why international satellite manufacturing and launch activities were essential, not optional.
Our Approach: Technical Expertise Meets Structured Delivery
Matthews Steer’s Innovation and Grants team worked closely with Esper, embedding themselves in their business to develop a robust AOF application.
1. Deep Technical Alignment
Our consultants engaged directly with Esper’s engineering team to understand:
- Hyperspectral sensor development
- Satellite integration requirements
- Data processing and imaging systems
This enabled accurate identification of core and supporting R&D activities.
2. Structuring a Complex Overseas R&D Claim
We developed a comprehensive submission that:
- Demonstrated the necessity of overseas activities
- Established the absence of equivalent Australian capability
- Clearly linked all overseas expenditure to eligible R&D
3. Navigating a High-Complexity Process
The application involved:
- Multiple activity streams
- Significant expenditure
- Iterative engagement with government assessors
The process required refinement, restructuring, and ongoing clarification to ensure a clear and defensible position. With Esper’s work spanning advanced engineering, satellite systems, and data processing, their team provided highly technical input to Matthews Steer from the outset.
“What impressed me was Yvonne, Sulochana and the team’s technical understanding of what we’re building. We could share detailed, engineer-level briefs without dumbing anything down, and they translated that into strong, well-written applications.” — Shoaib Iqbal
Matthews Steer’s Innovation and Grants team’s ability to operate at a technical level was a key differentiator in the process and outcome.
Our technical expertise enabled a level of alignment that is critical in complex claims – particularly where overseas activities are involved – ensuring innovation was accurately captured and translated into a compliant submission.
Why External Support Was Critical
A key factor in the outcome was the ability to combine technical understanding with knowledge of how applications are assessed.
The AOF process requires:
- Technical interpretation
- Legislative expertise
- Understanding of assessor expectations
Esper noted that pursuing this internally would not have been feasible due to the complexity and time required.
“This wasn’t something we could have done solo. The time required, the complexity of the process, and not knowing what assessors were looking for – that’s intelligence we simply didn’t have.”
— Shoaib Iqbal
The Outcome: Unlocking Overseas R&D Through Advance and Overseas Finding
Esper successfully secured their Advance and Overseas Finding, enabling their overseas R&D expenditure to be recognised under the R&D Tax Incentive.
“We’re really happy with the outcome and I don’t think we would have gotten it without your help.”
— Shoaib Iqbal
Commercial Impact: Funding Growth and Reinvestment
Beyond the approval itself, the outcome delivered significant commercial value.
“This is a huge capital pipeline for us… we’re now offsetting one of the largest CapEx costs the company has.” — Shoaib Iqbal
By bringing overseas expenditure into scope, Esper was able to:
- Offset one of its largest cost bases
- Unlock a critical funding pathway
- Accelerate development and future launches
- Reinvest into Australian-based R&D
Looking Ahead
With additional satellite launches planned and continued innovation underway, Esper is now positioned to scale with greater confidence.
The outcome has also shifted how they think about funding:
- Recognising overseas expenditure as a viable pathway
- Exploring opportunities to reinvest and build capability within Australia
“Working with Matthews Steer has been instrumental for us. Given the nature of our business, a significant portion of our R&D expenditure occurs overseas, and we had been advised that claiming this would be unlikely, if not impossible.
Their team took the time to understand both our technology and how our business operates, and helped us navigate a complex process to achieve a successful outcome.
We’re really happy with the result and don’t believe we would have achieved it without their support. We look forward to continuing to work together as we grow.”
– Shoaib Iqbal, CEO & Founder
Esper Satellite Imagery
If your business is undertaking complex R&D involving overseas activities, there may be opportunities that have been overlooked.
Richard Grant, Partner and Head of Innovation & Grants at Matthews Steer, is here to discuss your circumstance and help determine what’s possible under the R&D Tax Incentive.
Call on 03 9325 6300, or complete our contact form and we’ll be in touch .