R&D tax incentive

The 43.5% R&D Tax Incentive for Clinical Trials

Eligible biotechs can claim up to a 43.5% refundable cash rebate on clinical-trial R&D conducted in Australia — paid even to pre-revenue companies. Over 99% of iNGENū clients qualify.

How the incentive works

Australia’s Research & Development Tax Incentive returns up to 43.5% of eligible R&D expenditure to companies with group turnover under AUD $20M. Crucially the offset is refundable: a company in a tax-loss position receives it as cash, not merely as a deduction. For a clinical-stage biotech that means a material portion of trial spend comes back as money in the bank, extending runway between raises.

Do you qualify?

Most overseas biotechs qualify by running the trial through an Australian subsidiary that contracts the eligible R&D. Over 99% of iNGENū clients meet the criteria. iNGENū helps establish the structure and captures qualifying clinical, non-clinical, bioanalytical and CMC activity so the claim is complete and defensible.

Worked example

A pre-revenue biotech spends AUD $2M on eligible Australian R&D for an early-phase trial. At a 43.5% refundable offset, roughly AUD $870k is returned to the company as cash. Combined with early-phase CRO costs already 80–90% below US levels, the effective net cost of generating FDA-ready data is dramatically lower than the US pathway. Figures are illustrative; iNGENū models your specific eligible spend.

Frequently asked questions

R&D Tax Incentive — FAQs

What is the 43.5% R&D tax incentive and does my biotech qualify?

Companies with under AUD $20M turnover can claim a 43.5% refundable offset on eligible Australian R&D — a cash rebate even if pre-revenue. Most foreign biotechs qualify by running the trial through an Australian subsidiary; iNGENū helps structure and document the claim.

Can a foreign (US, UK, EU) biotech claim the Australian R&D rebate?

Yes. Overseas biotechs typically qualify by establishing an Australian subsidiary that contracts the R&D. Over 99% of iNGENū clients qualify. iNGENū helps set up the structure and prepares the documentation the claim requires.

Is the rebate a cash payment or only a tax deduction?

For eligible companies in a tax-loss position, the 43.5% offset is refundable — paid to the company as cash, not merely a deduction against profit. This is why pre-revenue biotechs use it to extend runway.

What clinical-trial costs are eligible for the R&D incentive?

Eligible expenditure commonly includes clinical, non-clinical, bioanalytical, CMC and trial-related activities conducted in Australia. iNGENū scopes each program so qualifying spend is captured and documented correctly.

Estimate your R&D rebate

Tell us about your program and we’ll estimate eligible spend and the refundable offset.

Request a proposal