Is your R&D adviser charging too much?

Frequently asked questions

Is my R&D adviser charging too much?

Compare the fee in dollars against your actual benefit. Traditional R&D advisers commonly charge a success fee of 15 to 20 percent of the R&D benefit, often with an upfront retainer of $2,000 to $5,000. A fee well above that range, or one quoted as a large share of a refundable offset, deserves questions. The ATO lists charging excessive commissions that are a large percent of the refundable R&D tax offset as a concerning practice.

Why does the calculator show the fee as a share of the net benefit?

If your company pays tax, the R&D offset replaces the ordinary deduction for the same spend, so the real gain is the offset minus the value of that deduction. For a base rate entity under $20 million turnover that gain is 18.5 cents per dollar of eligible spend, not 43.5 cents, so a fee sized on the whole offset takes a much bigger bite of what you actually gain.

Can I claim my adviser's fee as R&D expenditure?

Not for preparing the registration or the tax return. The ATO says accountant or consultant fees cannot be notionally deducted for preparing an R&D Tax Incentive registration application or the tax return that claims it. Tax-related expenses for managing a company's tax affairs may be deductible under section 25-5 of the ITAA 1997.

Are success fees a red flag?

Not automatically, but a fee tied to claim size rewards a bigger claim rather than a defensible one. The ATO's 2025-26 areas of focus include intermediaries, including R&D advisers, who encourage high-risk positions such as R&D refund arrangements where adviser fees are charged on a contingency basis. Ask what the fee covers, who drafts and reviews the activities, and what support you get if AusIndustry or the ATO reviews the claim.

How does Rand charge?

Rand charges a Service Fee only, invoiced after your R&D benefit is issued, with no subscription or retainer. The rate falls as spend rises and each rate applies to the slice of the benefit attributable to that bracket of spend: 10% for up to $100k of R&D spend, 9% for $100k to $300k of R&D spend, 7.5% for $300k to $750k of R&D spend, 5% for above $750k of R&D spend. Amounts exclude GST.

Is Rand a tax agent?

No. Rand does not lodge tax returns or ATO schedules. Rand prepares your AusIndustry R&D registration from a claim pack your director approves, and your company submits it. Your own registered tax agent or accountant then includes the R&D Tax Incentive schedule in the company tax return.