Engineering & Manufacturing
Prototyping / fabrication firms - R&D Tax Benchmark
What proportion of total business expenses do Australian prototyping / fabrication firms typically claim as R&D under the RDTI?
Typical range
3–15%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 35%
Still defensible with strong evidence
Unusual - review carefully
> 55%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
2–7%
Indirect / supporting activities
What drives R&D intensity in this sector
Most output is client-funded; only own-IP or methodology R&D qualifies.
Sector disclaimer
Build-to-print work is excluded. Material allocations usually require a clear internal-IP stream.
ATO & AusIndustry context
Confirm 'on own behalf' on a project basis.
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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.