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Construction & Property

Modular / prefab construction - R&D Tax Benchmark

What proportion of total business expenses do Australian modular / prefab construction typically claim as R&D under the RDTI?

Typical range
3–12%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 25%
Still defensible with strong evidence
Unusual - review carefully
> 45%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
1–6%
Indirect / supporting activities

What drives R&D intensity in this sector

Connection systems, load-path verification and factory-process R&D drive eligible activity.

Sector disclaimer

Modular firms commonly sit higher than traditional builders. Repeat production of a validated module is excluded.

ATO & AusIndustry context

Recurrent production runs of a validated module are excluded.

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Educational benchmark only - not an eligibility test or tax advice. Final eligibility depends on whether your activities meet the s.355-25 / s.355-30 core and supporting R&D definitions and is determined by AusIndustry on registration.