Software development can qualify for the R&D Tax Incentive, but only when the work meets the legislative requirements for core or supporting R&D activities. To be eligible, the project must address a genuine element of technical uncertainty that a competent professional could not easily resolve using publicly available knowledge. Eligible software projects often involve creating new or bespoke algorithms, testing new system architectures, or developing technologies that advance capability beyond common industry practices. These activities require experimentation, hypothesis testing, and a structured approach to solving unknowns.
Not all software work is considered R&D. Routine coding, bug fixing, refactoring, user interface updates, framework upgrades, and standard feature development do not qualify because they follow known methods and do not create new knowledge. The key question is whether the outcome was uncertain and required experiments to resolve. If your project involves overcoming substantial technical challenges and you maintain clear documentation of the work performed, you may be eligible to claim. Our team can assist in determining which parts of your development activities meet the legislative definitions.