R&D & Software Development: Supporting Australia’s Tech Innovation
Software development is one of the fastest-growing sectors in Australia, with businesses investing heavily in AI, cybersecurity, SaaS, and blockchain technologies. The R&D Tax Incentive provides essential funding to help software developers push the boundaries of innovation, reducing financial risks while accelerating product development.
From cutting-edge machine learning models to optimising cloud-based applications, the software industry thrives on continuous R&D. However, navigating the complexities of R&D claims in software can be challenging, making expert guidance crucial.
What Software Activities Are Eligible for R&D?
Software businesses may qualify for R&D tax benefits if they engage in:
- AI and machine learning development – Designing and training predictive models, deep learning algorithms and automation tools.
- Cybersecurity and data protection – Developing advanced encryption protocols, intrusion detection systems and secure applications.
- Cloud computing and SaaS platforms – Building scalable, high-performance SaaS solutions with unique features.
- Software optimisation and code refactoring – Enhancing application performance, reducing latency and improving data processing.
- User experience and interface innovation – Designing advanced UX frameworks that improve functionality and engagement.
How prmpt. Helps Software Companies Secure R&D Benefits
At prmpt., we assist startups, enterprise software developers, and tech entrepreneurs in structuring their R&D tax claims effectively. Our industry-specific approach ensures that all eligible software development activities are documented, tracked, and successfully claimed.
Why Choose prmpt.?
- Tech-savvy consultants – We understand the challenges of AI, SaaS and cloud-based innovations.
- Comprehensive documentation – We help track and categorise eligible development costs.
- Maximised claims – Ensuring that every eligible expense contributes to your tax incentive benefits.
- Compliance assurance – Keeping your R&D claims audit-ready to avoid rejections.
Ready to Secure Your R&D Tax Incentive?
Let prmpt. handle your software R&D tax claim, so you can focus on building next-gen technology. Contact us today to discuss your eligibility.
What is R&D?
The Research & Development (R&D) Tax Incentive is Australia’s single largest government incentive. Australian companies creating new and novel products or services can utilise R&D to claim back a proportion of their eligible expenditure as a cash refund or tax offset, including costs associated with R&D applications and efforts to secure R and D grants in Australia.
With a comprehensive strategy and the correct execution, the R&D Tax Incentive can provide cash flow and support to grow innovation within your company.
How much can I get from R&D?
Hypothetical Example <$20 million annual turnover
If your annual turnover is less than $20 million, you’re eligible to claim 43.5% on R&D expenditure as a cash refund.
- Your company turnover is $3,000,000
- You have $1,000,000 in eligible R&D expenditure
- Therefore you will receive a refundable tax offset of $435,000 ($1,000,000*43.5%)
Hypothetical Example >$20 million annual turnover
If your annual turnover is greater than $20 million, you’re eligible to claim 38.5% on R&D expenditure as a tax offset.
- Your company turnover is $22,000,000
- You have $4,000,000 in eligible R&D expenditure
- Therefore you will receive a non-refundable tax offset of $1,540,000 ($4,000,000*38.5%)
What does the R&D Tax Refund Calculator do?
Our R&D Tax Refund Calculator helps you estimate your potential R&D tax refund based on your company’s turnover and R&D expenditure, including costs related to R&D applications and R and D grants Australia. It provides a clearer picture of what financial benefits you might expect.
Is every business eligible for R&D tax incentives?
Not every business qualifies. Eligibility is determined by various factors, including the nature of your operations and the kind of research and innovation you’re undertaking. To easily check if you qualify, you can use our Eligibility Test.
Why do I need an R&D consultant?
- R&D consultants can use their existing knowledge to effectively execute your R&D claim promptly
- Lodge your claim with confidence that the activities meet the eligibility criteria and the proper due diligence has been performed
- We have several years of experience in R&D across several industry sectors
- Avoid distracting your internal team from their core work by having a team of experienced R&D consultants working on your claim in the background
- De-risk losing company Intellectual Property (IP) that often sits with one employee and leaves the company when they do
- Use our expert knowledge and advice to maximise your R&D benefit and achieve the highest level of compliance
How often should I consult with my R&D tax consultant?
It varies depending on your business needs. However, with prmpt., we typically engage in regular consultations, either fortnightly or monthly, to ensure a smooth process and that no R&D opportunity is missed.
Is R&D guaranteed?
Whilst R&D is a self-assessed program, it is not guaranteed from an audit/review by AusIndustry. Our job is to ensure your R&D application is eligible, that all costs are captured/maximised and that you have the supporting documentation to substantiate your claim.
Can prmpt. help with government grants beyond R&D?
Absolutely! Our consultants are always on the lookout for new grants suitable for your company. As these become available, we offer advice, application assistance, and management services in addition to R&D consulting.
How long does it take to process an R&D application?
Depending on how quickly we can obtain all the required information from yourself and your team, an R&D application can be processed by us in 2-3 weeks. Then allow for an additional 1-2 weeks for the R&D refund/offset to be issued by the ATO.
How much do you charge for your services?
As every client and their business is different in terms of size, requirements and work involved, our proposals are tailored to each client’s individual needs. Depending on if it is just an R&D application, government grant or both we can discuss fees for our services and a model that best suits your business.
Feel free to contact us for a quote.
What makes prmpt. different from its competitors?
- We spend a considerable amount of time ensuring your R&D activities are compliant in relation to the latest guidance and tax legislation.
- We educate your team by creating an R&D sensitive team culture, ensuring nothing is missed throughout the year, especially concerning R&D application and R and D grants.
- We engage with you on a regular basis and complete the required work throughout the year as opposed to the traditional once a year catch up that is becoming more heavily scrutinised by the governing bodies. As soon as lodgement dates open we can submit your application to ensure a prompt submission of your tax refund/offset.
- We maintain the highest level of compliance for your R&D.
Can you give any tips on R&D or government grants?
Sure!
- Ensure you regularly record all R&D activities, develop supporting documentation and have a system for managing throughout the financial year. Don’t leave it to the last minute!
- Get scientific! Ensure you develop a strong hypothesis and make it clear what you are aiming to achieve in your experiments using specifics.
- Prove yourself! Research that the product, method or development you are creating does not already exist in the market and if it does explain why or how yours is different and developing new knowledge.
- When it comes to government grants ensure you answer the question and follow the assessment criteria to the tee. Be concise, do not write emotional responses and only include information about the company/project that is relevant to the grant you are applying for. Having an outsider review your work with an unbiased, non-emotional perspective can increase your chances of success tenfold.
If you have completed a grant application and simply need a review and honest feedback, we can also offer this service. Speak with one of our consultants to learn more.
How do I proceed from here if I wish to engage prmpt.'s services?
We love working with entrepreneurs, inventors, CEOs, CFOs and R&D managers who are passionate about their R&D project. Your success is our success, and we’ll always endeavour to achieve the best outcomes for our clients in an efficient manner, hence why we call ourselves prmpt, especially when it comes to R&D applications and securing R and D grants Australia.
To get started, take our eligibility test.
