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Engineering & Manufacturing

Chemical manufacturing - R&D Tax Benchmark

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

Typical range
4–15%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 30%
Still defensible with strong evidence
Unusual - review carefully
> 50%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
2–7%
Indirect / supporting activities

What drives R&D intensity in this sector

Formulation, catalyst and process R&D can sustain a meaningful intensity layer.

Sector disclaimer

Chemical manufacturers commonly sit 4–15%. Pilot-plant operations may be supporting where they validate eligible core experiments.

ATO & AusIndustry context

Scale-up trials must be hypothesis-led to remain eligible; routine bulk production is not.

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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.