R&D Tax Incentive 2028: who wins, who loses

The R&D Tax Incentive is getting its first major restructure since 2021. The changes apply from 1 July 2028 and they sharpen the focus on genuine core research.

The headline changes:

• The premium rate for core R&D activities goes up
• Supporting R&D activities are removed from the program
• The minimum eligible spend threshold rises from $20,000 to $50,000
• Compliance and integrity rules are tightened

Winners are companies running real experimental development with material spend. The higher rate, applied to a cleaner pool of activities, improves the return on every dollar of qualifying R&D.

Losers are companies that have been claiming on the edges of the regime. Without supporting R&D in the mix, claims need to stand entirely on their core activity case. And the higher minimum threshold pushes smaller claimants out of the program.

If you currently claim, three things to do this year:

• Audit your claim against the new definition of core R&D
• Map your support activities and decide whether they're truly part of a core experiment
• Forecast whether your spend will clear the new $50,000 floor

We'll be working through this with R&D clients in the lead-up to the changeover. Don't wait until June 2028.