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Healthcare & Medical

MedTech (device development) - R&D Tax Benchmark

What proportion of total business expenses do Australian medtech (device development) typically claim as R&D under the RDTI?

Typical range
30–70%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 85%
Still defensible with strong evidence
Unusual - review carefully
> 95%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
5–15%
Indirect / supporting activities

What drives R&D intensity in this sector

Pre-TGA device companies are R&D-dominant. Post-approval intensity falls quickly as manufacturing and commercial functions scale.

Sector disclaimer

Device companies pre-market routinely sit at 50–80% direct R&D. Anything materially lower may indicate under-claim of supporting engineering and regulatory work.

ATO & AusIndustry context

Verification & validation testing required for regulatory approval is generally a supporting activity, not core R&D.

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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.