Budget 2026 (announced 28 May 2026 by Revenue Minister Simon Watts) reshapes the R&D Tax Incentive: businesses will get in-year payments so the 15 percent credit arrives sooner rather than after year end, and the Commissioner gains discretion to accept and amend late RDTI filings. The cap on non-administrative internal software R&D expenditure is being cut from NZ$25 million to NZ$3 million, and some mining-related R&D becomes eligible.
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NZ RDTI overhaul: in-year payments, internal software cap cut to NZ$3m
Why this matters for founders
Software founders claiming the RDTI should model the new NZ$3m internal-software cap into forecasts, while the in-year payments materially improve R&D cash flow. Confirm your eligible expenditure categories now and plan claim timing around the new payment rules.
Source: Beehive.govt.nz (NZ Government)
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