Salaries, wages, and superannuation for employees directly involved in your R&D project can be a substantial portion of your claim. These costs are allocated according to the time and effort dedicated to the project and may include:
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Bonuses – Performance-based incentives tied to project milestones or outcomes.
Overtime Pay – Additional wages for employees working beyond standard hours on R&D-related tasks.
Superannuation Payments – Mandatory contributions made toward employees' retirement funds, based on their project involvement.
Allowances – Extra payments for specific duties, such as travel or specialised equipment usage.
Sick Leave – Paid leave given to employees unable to work due to illness during the course of their R&D responsibilities.
Annual Leave – Paid time off accrued by employees while they contribute to the R&D project.
Workers’ Compensation Insurance Premiums – Insurance costs covering employees in case of injury or illness related to their R&D duties.
Wages – Regular payments made to employees working on the project, directly related to their contributions.
Penalty Rates – Higher pay rates for employees working outside of normal hours or on public holidays during the project.
Payroll Tax – State or territory tax paid on wages for employees engaged in eligible R&D activities.
Long Service Leave – Accrued leave for long-term employees who contribute to R&D efforts over time.

Engaging third-party contractors in your R&D project can be considered an eligible expense, provided they meet the necessary criteria. These external contractors can play a key role in your innovation efforts, offering specialised skills and services to support the project. Their contributions help ensure a collaborative approach, driving the project toward successful outcomes while adhering to R&D eligibility guidelines.

The R&D Tax Incentive enables businesses to claim the depreciation of equipment and facilities used in R&D activities. The gradual loss in value of these assets can be claimed at an enhanced tax offset rate, helping reduce the costs associated with essential R&D tools and resources.

Businesses can claim a range of administrative and overhead expenses tied to conducting R&D activities.

Eligible claims for overheads may include:
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‍Rent – Lease or rental costs for premises used to house R&D operations, whether for labs, offices, or testing spaces.
‍Electricity and Utilities – Utility bills, including electricity, water, and gas, required to power facilities where R&D is being conducted.
‍Property Rates and Taxes – Local council rates and property taxes incurred on buildings or spaces dedicated to R&D work.
‍Insurance – Costs associated with insuring the property, equipment, and personnel involved in the R&D process, covering risks such as damage, liability, or loss.

Expenses for computer software and IT applications that support your R&D activities may be eligible for claims. This includes:

‍Cloud Computing Software – Subscription costs for cloud-based services used to store, manage, or assess data related to R&D projects.
‍Software Migration – Costs associated with transitioning data or applications from old systems to new ones to support ongoing R&D.
‍Support for Legacy Systems – Expenses for maintaining or updating older systems essential for R&D activities.
‍Artificial Intelligence – Investment in AI tools and technologies used to enhance or automate R&D processes.
‍Machine Learning – Costs for software and tools related to developing or implementing machine learning algorithms in R&D.