Australia R&D Tax Incentive (Income Tax Assessment Act 1997 Division 355) 355-30: s 355-30 Claim supporting R&D activities only where directly related, and on the dominant purpose test where required

A supporting R&D activity is one directly related to core R&D activities; but an activity that is itself excluded under s 355-25(2), produces goods or services, or is directly related to producing goods or services qualifies only if undertaken for the dominant purpose of supporting core R&D activities. Activities relating to gambling or tobacco matters qualify as supporting activities only if they meet the harm minimisation purpose. Pending reform: the exposure draft Treasury Laws Amendment (Tax Reform No. 5) Bill 2026, Better targeting the R&D Tax Incentive (released 11 September 2026, not introduced as at 30 September 2026), would apply to income years starting on or after 1 July 2028. The draft would remove supporting activities entirely.