The R&D Tax Incentive registration process has undergone significant updates with the introduction of a new online form. These changes aim to improve the quality, clarity, and substantiation of R&D Tax Incentive claims by placing greater emphasis on detailed reporting, evidence-based documentation, and enhanced financial transparency.
While the intention behind these updates is to strengthen the integrity of R&D Tax Incentive claims, they may also present challenges for businesses. The increased administrative burden, expanded character limits, and more rigorous evidence requirements mean that organisations may need to reassess their internal processes to ensure compliance and avoid delays or complications during the registration process.
Key Changes to the New R&D Tax Incentive Online Template
1. Expanded Detail Requirements for R&D Activities
- Core Activities:
- For each core R&D activity, registrants must now answer the question, “Why couldn’t a competent professional have known or determined the outcome in advance?” The character limit for this section has been increased to 4000.
- The Sources Investigated section also now allows up to 4000 characters (previously limited to 1000).
- Registrants must specify who conducted each activity, including whether it was the head of the MEC group or a subsidiary (subsidiary ABN to be included if applicable).
- Support Activities:
Both the Brief Description and How the Activity Supported the Core Activity sections now have a character limit of 4000 (previously 1000).
2. Strengthened Evidence and Documentation Requirements
- Background Research / State-of-the-Art:
Registrants must provide a description of the documents retained or intended to be retained in relation to R&D activities. - Core Experimental Activities:
Each core activity will require a description of the evidence maintained for the activity. - Support Activities:
A description of supporting evidence must be provided for each support activity.
3. Increased Financial Reporting Requirements
- Financial Projections:
Businesses are now required to submit financial projections for up to three years for each registered core activity. - Expenditure Reporting:
Registrants must now report actual and reasonably anticipated annual expenditure for each activity (previously only estimated values were required)
4. Additional Project-Level Information
- Facilities and Equipment:
Registrants must describe the plant facility, and any specialist equipment used for each registered project. - Beneficiary Details:
Registrants must clarify the ownership and control of intellectual property (IP) generated during the R&D activities, specify who is responsible for the conduct of the activities, and identify who bears the financial burden.
What This Means for Your R&D Tax Incentive Claim
The new template’s more detailed approach means that businesses will need to ensure they have comprehensive documentation and substantiation for every R&D activity they register. The increased character limits and more rigorous evidence requirements suggest that companies may need to spend more time preparing their claims and reviewing internal processes to ensure compliance.
While these updates will likely lead to a more robust R&D Tax Incentive system, businesses need to stay ahead of the curve by familiarising themselves with the new template requirements. Early preparation and review of internal documentation are crucial to ensuring a smooth registration process and avoiding delays.
Ensure Your R&D Claim Stands Up to Scrutiny
If you’re looking for guidance on navigating these changes or need support preparing your R&D Tax Incentive claim, our Innovation + Grants team is here to help.
Led by Matthews Steer Partner and R&D funding specialist Richard Wraith, our team of engineers and scientists has helped clients secure more than $250 million in funding to date. With Richard’s expertise and the support of our specialists, you can be confident that we know how to help your business move forward.
Get in touch with Richard directly at rwraith@matsteer.com.au, or contact us today to start streamlining your claim and ensuring it meets the new requirements with ease.
Published September 2025