Some levy-funded R&D eligible for FY2025 R&D Tax Incentive

There’s ‘hip pocket’ good news to share for olive levy payers this month, with Hort Innovation now registered with AusIndustry as a Research Service Provider (RSP). This means Hort is registered to undertake R&D activities on behalf of levy payers, and that some levy-funded R&D projects may be eligible for tax offsets.

The R&D Tax Incentive is an Australian Government program that provides a tax offset for eligible R&D activities and expenditure. It is designed to encourage businesses to invest in R&D that generates new knowledge, processes, or products. It is important to note, however, that not all levy-funded activities qualify as R&D under the program.

Making a claim

All claims are managed through the AusIndustry registration process and the ATO R&D schedule in your tax return. To enable eligible levy payers to prepare their R&D Tax Incentive claims, Hort Innovation provides the required Project Descriptions and eligible R&D tax rates, which are calculated on the eligible activity for each year. Applications must be submitted by 30 April in the following financial year.

The Project Descriptions provide details of the levy-funded R&D activities delivered by Hort Innovation, outlining the scope of work undertaken, the purpose of the activities, and the proportion of levy funds attributed to eligible R&D. They are needed to prepare the Application for Registration of R&D Activities.

The eligible R&D tax rate identifies the proportion of R&D activities undertaken that meet the narrow definition of R&D under the Income Tax Assessment Act 1997 (Cth). It does not apply to marketing, biosecurity (in the case of olives, the 10c/tonne PHA component) or other non-R&D levy expenditure. The eligible olive levy R&D rate for the 2024-25 financial year is 40.99%.

More information

Hort Innovation has prepared industry-specific industry R&D tax incentive resources to assist with your application to AusIndustry, which you can access from the links below:

• R&D Tax Incentive info guide for levy payers – provides general information around eligibility and key dates, helping you understand the basic requirements and timelines for the R&D tax incentive.
• RSP Project Descriptions for FY2024/25 – outlines the R&D activities to assist levy payers with the necessary information needed for their application.
• R&D Tax Incentive Rates for FY2024/25 – the eligible R&D expenditure percentages by levy type for the financial year.

More detailed information on the R&D Tax Incentive can be found on the ATO website here.

Next steps

If you are interested in submitting an application as a levy payer:

• Seek independent advice from qualified financial or professional advisors to assess your individual circumstances, and to provide application support;
• Email [email protected] if you have any questions.
• Make sure your application is submitted by 30 April 2026.

 This communication and the supporting documents do not constitute financial, taxation or legal advice. Hort Innovation does not provide application services. Obtaining independent advice from qualified financial or professional advisors is strongly recommended.