Hardware - R&D Tax Benchmark
What proportion of total business expenses do Australian hardware typically claim as R&D under the RDTI?
What drives R&D intensity in this sector
Prototype iteration, EVT/DVT cycles and test-rig builds drive intensity; production tooling is excluded.
Sector disclaimer
Pre-mass-production hardware sits 30–55%. Lower allocations after launch are expected.
ATO & AusIndustry context
Tooling and production-run costs fall outside the s355-25 core activity definition; reverse-engineering existing products is separately excluded under s355-25(2)(g).
Estimate your own RDTI offset
Plug your turnover, total expenses and notional R&D deductions into our free estimator and benchmark them against this sector range automatically.
Open the offset estimatorMore benchmarks in Technology
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.