Construction & Property
Property development - R&D Tax Benchmark
What proportion of total business expenses do Australian property development typically claim as R&D under the RDTI?
Typical range
0–3%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 8%
Still defensible with strong evidence
Unusual - review carefully
> 15%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
0–2%
Indirect / supporting activities
What drives R&D intensity in this sector
Land acquisition, sales and marketing dominate the cost base.
Sector disclaimer
Property development costs are predominantly capital and commercial. R&D allocations should be modest and project-specific.
ATO & AusIndustry context
Holding costs and finance charges are not R&D.
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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.