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Construction & Property

Residential construction - R&D Tax Benchmark

What proportion of total business expenses do Australian residential construction 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

Residential build is overwhelmingly routine. Genuine R&D usually involves novel materials or modular systems.

Sector disclaimer

Standard residential construction is not R&D. Higher allocations usually reflect a discrete modular, prefab or sustainability R&D programme.

ATO & AusIndustry context

AusIndustry sector guidance for Building & Construction is explicit that customary trade practice is 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.