Do the 2026-27 Budget changes apply to my current claim?

No. The measures announced in the 2026-27 Budget are proposed to start from 1 July 2028 and still need legislation, so their detail can change. Registrations for earlier income years are assessed under the current Division 355 rules, including the existing treatment of supporting activities, offset rates and the $20,000 minimum spend.

What changed for gambling and tobacco R&D?

For income years starting on or after 1 July 2025, activities related to gambling or tobacco cannot be core or supporting R&D activities, unless they are conducted for the sole purpose of harm minimisation. Companies with any connection to those sectors should check each registered activity against the exclusion before registering.

Why track policy changes years in advance?

Because the evidence for a future claim is created during the income year itself. If a proposed change narrows what qualifies, such as limiting the offset to core activities, the way activities are scoped and documented today determines what can be registered later. Planning early avoids restructuring records after the year has closed.

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Topic hub: Budget & Policy

R&D Tax Incentive policy and Budget changes

Federal Budgets regularly reshape the R&D Tax Incentive, but an announcement is not law until legislation passes. The 2026-27 Budget proposed a redesign from 1 July 2028, including removing supporting activities and raising the minimum spend. Claims for earlier income years run under the current Division 355 rules, so the practical question is what to record now.

Last updated 27 September 2026

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The rules that apply today

Core vs supporting R&D activities, and why it now matters more
Core and supporting R&D activities are treated differently under Division 355, and the 2028 reforms widen the gap. How to tell them apart and classify correctly.
How to Calculate Your R&D Tax Incentive Rebate in Australia
A step-by-step method for calculating your Australian R&D tax offset: notional deductions, turnover test, offset rates, intensity premium and worked examples.

Tools and references

R&D Tax Incentive calculatorEstimate the refundable or non-refundable offset on your R&D spend.Division 355 glossaryPlain-English definitions of every term of art in the program.

Frequently asked questions

Do the 2026-27 Budget changes apply to my current claim?: No. The measures announced in the 2026-27 Budget are proposed to start from 1 July 2028 and still need legislation, so their detail can change. Registrations for earlier income years are assessed under the current Division 355 rules, including the existing treatment of supporting activities, offset rates and the $20,000 minimum spend.
What changed for gambling and tobacco R&D?: For income years starting on or after 1 July 2025, activities related to gambling or tobacco cannot be core or supporting R&D activities, unless they are conducted for the sole purpose of harm minimisation. Companies with any connection to those sectors should check each registered activity against the exclusion before registering.
Why track policy changes years in advance?: Because the evidence for a future claim is created during the income year itself. If a proposed change narrows what qualifies, such as limiting the offset to core activities, the way activities are scoped and documented today determines what can be registered later. Planning early avoids restructuring records after the year has closed.

The R&D Tax Incentive is a self-assessment program. This page is general information, not tax, legal, or financial advice; eligibility depends on your specific circumstances and you should seek independent advice for them.