2026-27 Budget overhauls R&D Tax Incentive: +4.5pp rate, $50m turnover cap

In the 29 May 2026 Federal Budget, the government proposed a major R&D Tax Incentive shake-up effective 1 July 2028: a 4.5 percentage-point uplift to the core R&D offset rate, the refundable-offset turnover threshold lifting from $20m to $50m, the minimum R&D spend rising from $20,000 to $50,000, and the expenditure cap increasing from $150m to $200m. Refundability is restricted to companies in their first 10 years, and 'supporting' R&D activities lose eligibility.