Technology

Pre-revenue tech startup (general) - R&D Tax Benchmark

What proportion of total business expenses do Australian pre-revenue tech startup (general) typically claim as R&D under the RDTI?

Typical range

45–85%

Direct (core) R&D as % of expenses

Elevated but plausible

up to 92%

Still defensible with strong evidence

Unusual - review carefully

> 96%

May still be valid; expect AusIndustry scrutiny

Supporting R&D

5–15%

Indirect / supporting activities

What drives R&D intensity in this sector

Headcount is engineering-heavy; commercial functions are minimal.

Sector disclaimer

Pre-revenue tech startups frequently sit above 70% direct R&D — that is consistent with the business model. Documentation of hypotheses is what matters at audit, not the percentage.

ATO & AusIndustry context

Founder time can be claimed at reasonable apportionment if directly engaged in experimental activity.

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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.