Australia

Australia: If your claim is reviewed

What to expect if the Department of Industry, Science and Resources (DISR) examines an R&D Tax Incentive registration or the ATO reviews the claim: the statement of issues, 30 days to provide records, findings that bind the ATO, internal review within 28 days, the Administrative Review Tribunal, the ATO's review of expenditure and objections. What to expect from your adviser, and why to take advice first.

Last reviewed: 13 October 2026

This page summarises the position in Australia as at 13 October 2026. It is not legal advice and may not reflect later changes. Check the official sources listed below.

Take advice first

Two agencies can look at an Australian claim, and each step has a deadline. You have 30 days to provide records to the Department of Industry, Science and Resources (DISR). You have 28 days to ask for an internal review of the department's decision. You have four years to object to an ATO assessment that includes an R&D tax offset. Before you reply to anything, read your engagement letter to see what help it provides, tell your adviser the same day, and take advice from someone who can see the letter and the registration. This page describes the process in general terms from the department's and the ATO's own pages. Nothing here replaces advice on your own case.

How the department examines a registration

The department takes a risk based approach and uses examinations where the eligibility risk appears high. An examination is a detailed review of the application and your records. It can take place before or after a registration is accepted, and it can cover current or previous income years. The department assigns a case manager, notifies you and explains its concerns. Before making a finding it sends a statement of issues setting out the department's concerns. You have 30 days to provide evidence and more information, with extensions of 14 days on request up to 92 days in total. If you cannot provide records, the department says it is likely to find that you did not conduct or plan eligible R&D activities. You can comment on information or expert opinion before a decision, and you are told the outcome.1 2 3

Findings

Findings are legally binding, and a finding about a registration binds the ATO for the income year if it is made within four years after the end of that year.2 4 The ATO says a finding binds it and is given immediate effect.5 If the offset was already claimed on activities found ineligible, you must amend your tax return, and penalties and interest charges may be applied.2 The department says plainly that registering does not mean your activities are eligible. The program is self-assessed even where you get professional advice, and you are responsible for making sure the activities you register are eligible.1 3

If you disagree with the department

The program charter says to speak to the case manager first. You must request an internal review within 28 days after being notified of the decision, on the internal review application form. After that you can apply to the Administrative Review Tribunal; an appeal to the Federal Court lies only on an error of law.2 3 Each of these has a deadline, and the choice is a matter for advice.

The ATO's review of the expenditure

The ATO may separately review the expenditure side of your claim and ask for records; the two agencies share some information, and either can ask the other to conduct a review.1 Where a finding removes part of a claim, the ATO says it recommends that the company amends its own return. The ATO says it waits 28 days before starting an audit.5 If you disagree with an ATO assessment that includes an R&D tax offset, the route is an objection. The ATO says an objection is lodged in writing and that there is no fee. For an assessment that includes an R&D tax offset, the time limit is four years after the return was lodged. After the ATO decides an objection, external review is by the Administrative Review Tribunal or the Federal Court.5 The ATO's amendment periods, and how a return is amended, are on the your responsibility page. Each of these routes has a deadline, and the choice between them is a matter for advice.

What to expect from your adviser

What your adviser must do depends on the engagement letter, which is why the review and audit support clause matters before you sign. In an examination, the useful things an adviser does are these.

Produce the activity records and the expenditure workings quickly and in order, within the 30 days.
Help the company respond to the statement of issues with the people who did the work.
Vary the registration to remove an activity before a finding, if that is the right course on advice.
Tell you plainly what a finding or an assessment means and what your options are, including the 28 day internal review and an objection to the ATO.

A registered tax agent is bound by the Code of Professional Conduct, with sanctions for breach,6 but nothing the agent does moves the tax, interest or penalty off the company. If the adviser's help is charged by the hour, agree an estimate and a ceiling before the work starts. The companies under review page and the claim reduced on review page cover the fee side.

Sources

Department of Industry, Science and Resources, Assuring integrity in the R&D Tax Incentive (business.gov.au). Back
Department of Industry, Science and Resources, Decisions we make about R&D Tax Incentive applications (business.gov.au). Back
Department of Industry, Science and Resources, R&D Tax Incentive program charter (business.gov.au). Back
Income Tax Assessment Act 1997 section 355-705(1) (Compilation No. 267, 27 August 2026); Industry Research and Development Act 1986 section 27J (Compilation No. 34, 21 February 2025). Back
Australian Taxation Office, Research and development tax incentive: correcting mistakes and disputing decisions (13 May 2026). Back
Tax Agent Services Act 2009, sections 30-5, 30-10 and 30-15 (Compilation No. 27, 1 October 2026). Back

Official sources

Assuring integrity in the R&D Tax IncentiveDepartment of Industry, Science and Resources (business.gov.au)
Decisions we make about R&D Tax Incentive applicationsDepartment of Industry, Science and Resources (business.gov.au)
R&D Tax Incentive program charterDepartment of Industry, Science and Resources (business.gov.au)
Income Tax Assessment Act 1997, section 355-705, Compilation No. 267Federal Register of Legislation
Industry Research and Development Act 1986, section 27J, Compilation No. 34Federal Register of Legislation
Research and development tax incentive: correcting mistakes and disputing decisionsAustralian Taxation Office
Tax Agent Services Act 2009, Part 3 (Code of Professional Conduct), Compilation No. 27Federal Register of Legislation

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