Engineering & Manufacturing

Advanced manufacturing - R&D Tax Benchmark

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

Typical range

8–25%

Direct (core) R&D as % of expenses

Elevated but plausible

up to 45%

Still defensible with strong evidence

Unusual - review carefully

> 65%

May still be valid; expect AusIndustry scrutiny

Supporting R&D

3–10%

Indirect / supporting activities

What drives R&D intensity in this sector

Process and product development qualifies; serial production is excluded.

Sector disclaimer

Advanced manufacturers commonly sit 10–25%. Higher percentages usually reflect a dedicated NPD or process-engineering team.

ATO & AusIndustry context

Routine production once knowledge is established is not a core activity under s355-25 (the technical unknown has been resolved).

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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.