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Topic hub: Compliance & Evidence

R&D Tax Incentive evidence and record keeping

An R&D Tax Incentive claim stands on contemporaneous records: evidence created while the work happened that shows the hypothesis, the experiments, what was observed and what was concluded, plus time and cost records linking the expenditure to each activity. AusIndustry tests the activities and the ATO tests the dollars, so the records must satisfy both.

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  1. R&D Tax Incentive Record Keeping: Contemporaneous EvidenceWhat records the ATO and AusIndustry expect for an R&D claim, what contemporaneous really means, how long to keep them, and a checklist by claim stage.13 min read
  2. What Evidence AusIndustry Accepts for R&D Tax ClaimsThe records AusIndustry accepts as proof of registered R&D activities, mapped to each s 355-25 criterion, plus what contemporaneous means in practice.12 min read
  3. How to Write an R&D Tax Incentive Technical NarrativeA field-by-field guide to AusIndustry activity descriptions: hypothesis, sources investigated, experiment, evaluation and new knowledge, with worked examples.13 min read
  4. ATO R&D Tax Incentive reviews: what triggers them, how to be readyWhat triggers an ATO or AusIndustry review of an R&D Tax Incentive claim, what reviewers ask for, and how to make your claim review-ready before it happens.4 min read

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Frequently asked questions

What does contemporaneous evidence mean?
Records created at the time the R&D was done, not reconstructed afterwards. Dated experiment plans, test results, issue tracker entries, commit history, lab notes and meeting records all count when they show the hypothesis, the experiments and the evaluation. Documents written at year end to describe earlier work carry far less weight in a review.
How long should R&D records be kept?
Keep R&D records for at least five years, the general record keeping period the ATO applies to companies. Reviews can reach back over several income years, and both AusIndustry and the ATO may ask for the activity and expenditure records behind a registration during that time, so keep the evidence with the claim it supports.
Who reviews R&D Tax Incentive claims?
Two regulators. AusIndustry, on behalf of Industry Innovation and Science Australia, reviews whether the registered activities meet the Division 355 tests. The ATO reviews the expenditure, apportionment and the offset claimed in the company tax return. Either can ask for records, and an adverse eligibility finding flows through to the tax outcome.

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.