There’s nothing worse than pouring time, effort, and cash into a game-changing idea, only to realise you could’ve claimed thousands back in R&D incentives. The Australian R&D Tax Incentive is one of the most underutilised opportunities for businesses developing new tech, simply because many don’t know how to structure their work (or worse, they get it wrong).

At Smith Brothers Media, we don’t just build software and digital products, we make sure the process is set up for success from the start, so you can maximise R&D claims without the compliance headache.

So, let’s get into it. Here are the key questions you need to ask about R&D grants and how we help you at every step.

1. Does my project actually qualify for an R&D claim?

Not all software development is eligible for R&D tax incentives. To qualify, you need to be:

• Developing something new or significantly improved (not just custom builds).
• Tackling a technical challenge that requires experimentation.
• Keeping detailed records of how you’re solving problems.

How SBM helps: We structure development workflows to capture R&D work properly, ensuring your project meets AusIndustry’s criteria. No last-minute scrambles for documentation – just smooth, claimable work from day one.

2. How do I track my R&D activities and costs?

The ATO and AusIndustry won’t just take your word for it. They want:

• Proof that your project involved real experimentation and technical risk.
• Records of developer hours, technical roadblocks, iterations, and test results.
• A breakdown of eligible expenses, including salaries, contractors, and cloud costs.

How SBM helps: We set up automated tracking systems within your dev process—ensuring everything from time logs to iterations is recorded in a way that’s audit-proof. No messy spreadsheets, no lost data.

3. How much can I actually claim?

If your business turns over less than $20M, you can get a 43.5% refundable tax offset which means if you’re in a loss-making position, you could receive a cash refund from the ATO.
For larger businesses, it’s a non-refundable tax offset, meaning you can reduce your tax bill instead.

How SBM helps: We don’t just write code, we design your development process in a way that maximises claimable work. That means:

• Identifying all qualifying R&D tasks upfront.
• Ensuring your spending is structured efficiently.
• Making sure you’re not leaving money on the table.

4. What happens if I get audited?

If your records aren’t up to scratch, you could be asked to repay your R&D incentive (plus penalties). That’s why it’s critical to get it right before you start claiming, not when the ATO comes knocking.

How SBM helps:

• We ensure your development workflow aligns with ATO and AusIndustry compliance.
• Our structured approach means your claim is audit-ready from day one.
• We can work with your accountant or R&D tax specialist to make the process seamless.

5. How do I structure my software build for the best R&D outcome?

The way your software is developed determines how much R&D you can claim. If your project is structured poorly, you might only be able to claim a fraction of what you could have.

At SBM, we don’t just build tech—we build it the right way to:

• Maximise the claimable R&D portion of your development.
• Separate standard dev work from genuine experimental R&D.
• Avoid project creep that could reduce claimable expenses.

We work with your internal team (or external tax consultants) to make sure the structure is airtight—so when tax time rolls around, you’re not left scrambling to justify claims.

The Bottom Line: Build Smart, Claim Right

If you’re investing in technology, you should be capitalising on the R&D Tax Incentive. But getting it right requires the right process—and that’s where we come in.

At Smith Brothers Media, we make sure your software project isn’t just built for success—but structured for maximum R&D benefit.

• No guesswork. 
• No missing out on claims.
• No compliance headaches.

Want to talk about how we can help structure your software development for an R&D claim?