Engineering & Manufacturing

Food manufacturing - R&D Tax Benchmark

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

Typical range

2–10%

Direct (core) R&D as % of expenses

Elevated but plausible

up to 20%

Still defensible with strong evidence

Unusual - review carefully

> 35%

May still be valid; expect AusIndustry scrutiny

Supporting R&D

1–5%

Indirect / supporting activities

What drives R&D intensity in this sector

Recipe development, shelf-life trials and process scale-up may qualify; existing-product production runs do not.

Sector disclaimer

Food manufacturers commonly sit 3–10%. Reformulation projects need documented hypotheses and outcomes, not just R&D-coded GL accounts.

ATO & AusIndustry context

Routine quality control, regulatory labelling and packaging changes are excluded.

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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.