Retail, E-commerce & Consumer

Consumer products (DTC brand) - R&D Tax Benchmark

What proportion of total business expenses do Australian consumer products (dtc brand) typically claim as R&D under the RDTI?

Typical range

1–8%

Direct (core) R&D as % of expenses

Elevated but plausible

up to 18%

Still defensible with strong evidence

Unusual - review carefully

> 35%

May still be valid; expect AusIndustry scrutiny

Supporting R&D

0–4%

Indirect / supporting activities

What drives R&D intensity in this sector

Brand and marketing dominate; product-formulation R&D may qualify.

Sector disclaimer

Brand activity is not R&D. Eligible allocations usually sit with formulation or material-development work.

ATO & AusIndustry context

Aesthetic redesign is excluded; performance experimentation may qualify.

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More benchmarks in Retail, E-commerce & Consumer

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.