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Healthcare & Medical

Digital health / health software - R&D Tax Benchmark

What proportion of total business expenses do Australian digital health / health software typically claim as R&D under the RDTI?

Typical range
25–70%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 85%
Still defensible with strong evidence
Unusual - review carefully
> 92%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
3–10%
Indirect / supporting activities

What drives R&D intensity in this sector

Behaves like SaaS but with additional regulatory and clinical-validation supporting activity.

Sector disclaimer

Pre-revenue digital health platforms regularly exceed 60% direct R&D. Once recurring revenue scales, intensity drops in line with mature SaaS.

ATO & AusIndustry context

Validation of algorithm performance against clinical endpoints can qualify if hypothesis-led.

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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.