Engineering & Manufacturing

Industrial manufacturing - R&D Tax Benchmark

What proportion of total business expenses do Australian industrial 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

Capital-intensive operations with concentrated, episodic R&D around new product lines or major retools.

Sector disclaimer

Steady-state industrial manufacturing sits in the low single digits. Higher percentages are plausible during a specific line-development or new-process trial year.

ATO & AusIndustry context

Capital equipment is depreciable; only the experimental use of it is potentially eligible.

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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.