In the 2026-27 Federal Budget the Australian Government announced changes to the R&D Tax Incentive (R&DTI), confirmed on business.gov.au, that take effect from 1 July 2028. The refundable offset turnover threshold rises from $20 million to $50 million, the minimum eligible expenditure lifts from $20,000 to $50,000, and the intensity threshold for the premium rate drops from 2% to 1.5%. Until 1 July 2028 the program keeps running under the current rules.
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2026-27 Budget overhauls R&D Tax Incentive: refundable offset cap lifts to $50M
Why this matters for founders
Founders should keep claiming under today's rules through FY2027-28, but model runway assuming a higher $50k minimum spend to claim and a larger $50M turnover ceiling that keeps growing startups on the more valuable refundable offset for longer. Plan R&D budgets now so projects clear the new $50k floor.
Source: business.gov.au (Department of Industry, Science and Resources)
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