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Technology

Product development firms / studios - R&D Tax Benchmark

What proportion of total business expenses do Australian product development firms / studios typically claim as R&D under the RDTI?

Typical range
5–20%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 40%
Still defensible with strong evidence
Unusual - review carefully
> 60%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
2–8%
Indirect / supporting activities

What drives R&D intensity in this sector

Most output is client-funded; only the studio's own IP, frameworks and reusable platforms may qualify.

Sector disclaimer

Service revenue is excluded. Material allocations usually require a clearly delineated internal-product or IP-development stream.

ATO & AusIndustry context

Confirm 'on own behalf' for each project — IP ownership and financial risk are the key tests.

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More 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.