Never Claimed the R&D Tax Incentive? Start Here
Many Australian companies are eligible for the R&D Tax Incentive but have never claimed - often because they believe they're too small, too early, or that their work doesn't qualify. This guide is for first-time claimants who want to understand eligibility and how to start.
Common Reasons Companies Don't Claim
Every week we speak with companies doing genuinely innovative work who have never made an RDTI claim - NOT because they don't qualify, but because something put them off. If any of the following sounds familiar, read on. You may be closer to a claim than you think.
#1 - We haven't made any revenue yet. This is the most common misconception we hear - and it's simply not true. The RDTI is based on your R&D expenditure, not your revenue. Pre-revenue startups are not only eligible, they're often the biggest beneficiaries. A cash refund of up to 43.5 cents on the dollar can be exactly the runway extension an early-stage company needs.
#2 - We thought we were too small. There is no minimum size requirement for the RDTI. If your company is incorporated in Australia and spending money on eligible R&D activities, you can claim, whether you have two employees or two hundred.
#3 - We don't have formal R&D documentation. Formal lab reports aren't required. What matters is that you can demonstrate what you were trying to achieve, what you tested or built, and what you learned. We work with your team to identify and organise what you already have, and put systems in place to capture what you need going forward.
#4 - We're not sure if software development counts. It often does. Software development qualifies when it involves genuine technical uncertainty, where the outcome wasn't known in advance and existing solutions or knowledge couldn't solve the problem. Many software projects, particularly those involving new algorithms, AI systems, or novel technical architecture, include eligible R&D activity that companies routinely miss.
#5 - We manufacture products and assumed R&D was for biotech or software companies. It isn't. Manufacturing is one of Australia's most underclaimed sectors for RDTI, not because manufacturers don't qualify, but because most don't recognise their process development, materials testing, and product trials as R&D. If your business develops new products, experiments with materials, or runs production trials to solve technical problems, you likely have eligible activity. See our RDTI for manufacturers guide.
#6 - We heard the process is too complex. It can be, if you approach it without guidance. With the right support, it becomes a structured process your team moves through with clear direction at every step. That's exactly what we're here for.
#7 - We're worried about audit risk. A well-prepared claim, built on solid documentation and a clear methodology, carries very low audit risk. The risk comes from poorly substantiated claims, not from claiming itself. We build every submission to be defensible from day one.
#8 - We didn't know retrospective claims were possible. In some circumstances, yes, you may be able to claim for prior years. Time limits apply, so if you think you've missed previous claims it's worth having a conversation sooner rather than later.
If you recognised yourself in any of the above, the best next step is a conversation. Most of our clients are surprised by what they're actually entitled to.
Can You Claim Retrospectively?
Yes. You can claim for R&D conducted in previous financial years - up to 2 years back (with some conditions).
Requirements:
- You must still have records and evidence
- You must register with AusIndustry within 10 months of the relevant year-end
- The claim must still be valid under current legislation
Many first-time claimants successfully claim for past years.
Learn more about registration deadlines and timelines.
First-Time RDTI Claim Checklist
Before starting your first claim, assess:
1 Eligibility:
Did you conduct activities involving technical uncertainty?
Were you attempting to resolve something that couldn't be readily deduced by a competent professional?
Did you conduct systematic experimentation?
2 Documentation:
Do you have records of what you attempted?
Can you identify who worked on R&D activities?
Can you separate R&D expenditure from BAU costs?
3 Risk:
Have you tested your framing against AusIndustry guidance?
Are you prepared for potential review?
If you can answer 'yes' to most of these, you may have a valid claim.
Learn more about eligibility criteria. Ready to understand costs? See our pricing page or learn what an R&D consultant does.
What First-Time Claimants Get Wrong
Common mistakes in first claims:
Describing work in business terms, not technical terms
Claiming too broadly (including non-R&D work)
Poor documentation of experimentation
No clear hypothesis or technical uncertainty
Inadequate cost allocation
These mistakes increase audit risk and reduce claim success.
How We Support First-Time Claimants
Honest Eligibility Assessment
We tell you upfront if your work qualifies, before you invest in a claim.
Documentation Guidance
We help you gather evidence even if you didn't document with RDTI in mind.
Technical Framing
We translate your work into compliant R&D narratives.
Risk Mitigation
We prepare your claim as if it will be reviewed.
Start Your First RDTI Claim
Unsure if you qualify? Let's start with an honest assessment.
First-Time Claim ReviewGet in Touch
Ready to explore your first R&D Tax Incentive claim? Contact us for a free consultation.