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Healthcare & Medical

Dental clinics - R&D Tax Benchmark

What proportion of total business expenses do Australian dental clinics 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

Most clinical dentistry is routine treatment and excluded. Bona-fide R&D usually arises only where the practice runs structured experimental protocols (new material trials, digital workflow validation, custom implant design).

Sector disclaimer

Dental practices typically allocate 0–3% of expenses to direct R&D. Anything materially higher is not necessarily wrong, but it usually reflects formal experimental protocols, IP development or a distinct device/software arm rather than day-to-day clinical work.

ATO & AusIndustry context

Section 355-25(2)(b) excludes activities whose outcome can be known from current knowledge. Routine restorations, scans and treatments fall outside core 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.