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Technology

SaaS (pre-revenue / early-stage) - R&D Tax Benchmark

What proportion of total business expenses do Australian saas (pre-revenue / early-stage) typically claim as R&D under the RDTI?

Typical range
50–80%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 90%
Still defensible with strong evidence
Unusual - review carefully
> 95%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
5–15%
Indirect / supporting activities

What drives R&D intensity in this sector

Engineering headcount dominates the cost base; revenue is yet to scale operations and sales.

Sector disclaimer

Pre-revenue SaaS commonly sits between 60–85% direct R&D. Higher allocations are plausible for pure R&D vehicles, but full-company allocations above 95% usually need apportionment review.

ATO & AusIndustry context

AusIndustry guidance recognises iterative software development where hypothesis-driven and not merely customisation.

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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.