Custom software development services - R&D Tax Benchmark
What proportion of total business expenses do Australian custom software development services typically claim as R&D under the RDTI?
What drives R&D intensity in this sector
Client-funded build work is typically excluded; only internal IP or genuinely novel methods qualify.
Sector disclaimer
Service-revenue dev shops commonly land in the single digits. Material allocations usually point to a separately-funded internal product the agency owns.
ATO & AusIndustry context
Where the client owns the IP and bears the risk, the work is generally not on own behalf and not eligible.
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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.