Costs claimed must be essential to your R&D

The three main types of expenditure you can claim for are explained below.

Any cost you claim must be directly related to, required for and integral to your eligible R&D activity.


Employee costs

You can claim costs for employees involved in eligible activities, including:

  • salaries, wages, overtime, bonuses, sick, annual and long service leave
  • the cost of shares issued to employees.



You can’t claim spending on assets you acquire and use in your R&D activity, but you can claim depreciation on them.

Depreciation is calculated using the same rates and methods you use to calculate your income tax deductions.


Goods and services

You can claim the cost of acquiring goods and services (other than assets) that you use in your R&D.

The costs you can claim include:

  • overheads
  • materials used
  • paying contractors to perform R&D for you.