Technology

SaaS (revenue-generating) - R&D Tax Benchmark

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

Typical range

15–40%

Direct (core) R&D as % of expenses

Elevated but plausible

up to 60%

Still defensible with strong evidence

Unusual - review carefully

> 75%

May still be valid; expect AusIndustry scrutiny

Supporting R&D

3–12%

Indirect / supporting activities

What drives R&D intensity in this sector

Sales, marketing, support and infrastructure operations dilute intensity once ARR scales.

Sector disclaimer

Revenue-stage SaaS commonly settles between 20–40% direct R&D. Higher allocations are plausible during major platform re-architectures.

ATO & AusIndustry context

Routine maintenance, bug fixes, customer-specific config and BAU DevOps are excluded.

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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.