Engineering & Manufacturing

Materials science - R&D Tax Benchmark

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

Typical range

25–70%

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

3–12%

Indirect / supporting activities

What drives R&D intensity in this sector

Pre-commercial materials companies are R&D-dominant; scale-up shifts the ratio.

Sector disclaimer

Pre-revenue materials companies regularly exceed 60%. Production from validated formulations is excluded.

ATO & AusIndustry context

Characterisation testing may be supporting where it validates hypothesis-led experimentation.

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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.