Engineering & Manufacturing

Electrical engineering - R&D Tax Benchmark

What proportion of total business expenses do Australian electrical engineering 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

> 40%

May still be valid; expect AusIndustry scrutiny

Supporting R&D

1–6%

Indirect / supporting activities

What drives R&D intensity in this sector

Embedded firmware and novel power-electronics work may qualify; installation and commissioning do not.

Sector disclaimer

Field installation work is excluded. R&D usually sits with a small product or controls-engineering team.

ATO & AusIndustry context

Routine commissioning and switchboard wiring are excluded.

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More benchmarks in Engineering & Manufacturing

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.