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Healthcare & Medical

Biotechnology - R&D Tax Benchmark

What proportion of total business expenses do Australian biotechnology typically claim as R&D under the RDTI?

Typical range
40–85%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 92%
Still defensible with strong evidence
Unusual - review carefully
> 97%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
3–10%
Indirect / supporting activities

What drives R&D intensity in this sector

Clinical-stage biotech runs near-pure R&D until commercial revenues appear. Manufacturing scale-up shifts the ratio sharply.

Sector disclaimer

Pre-commercial biotech allocations above 80% are entirely typical. The relevant compliance focus is contemporaneous documentation of each experiment, not the headline percentage.

ATO & AusIndustry context

Clinical trial activity is supporting where it validates eligible core experimentation rather than routine safety/efficacy.

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More benchmarks in Healthcare & Medical

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.