When most people hear “R&D,” they picture fast-moving startups, disruptive technologies, or software teams prototyping in coworking spaces.
But the truth is: innovation is just as vital — and eligible — in mature, established businesses.
In fact, some of Australia’s most successful R&D Tax Incentive claimants are traditional SMEs in manufacturing, agriculture, logistics, construction, and health services. They’re solving real-world problems, improving processes, and adapting to evolving market demands — and are often doing eligible R&D without realising it.
In this blog, we explore how established businesses can access R&D tax offsets to stay competitive, improve margins, and drive long-term transformation.
🏗️ R&D in “Non-Startup” Sectors: Yes, It Counts
Let’s be clear: you don’t need to be writing code or working with AI to qualify for the R&D Tax Incentive.
AusIndustry recognises that innovation doesn’t just mean deep-tech or headline-grabbing breakthroughs. In fact, many traditional industries routinely engage in activities that qualify as R&D — especially when they’re solving tough technical problems with no guaranteed outcome.
Whether it’s refining a production method, experimenting with new materials or inputs, re-engineering processes to reduce waste, or testing new formulations or packaging, these efforts often involve forming a hypothesis, conducting experiments and drawing observations and conclusions — all core aspects of what the R&D Tax Incentive supports.
It’s less about the sector you’re in, and more about how you approach problem-solving.
🧱 Real-World Examples
| Sector | Eligible R&D Activity |
| Manufacturing | Developing energy-efficient production lines using alternative materials |
| Agriculture | Trialling new fertiliser compositions to improve yield under climate stress |
| Food & Beverage | Reformulating products to meet health guidelines without changing taste |
| Construction | Designing lightweight, high-strength modular components |
| Health | Customising sensor-based systems for fall detection |
These businesses often innovate incrementally — not by launching new ventures, but by making their operations smarter, more scalable, or more sustainable.
💰 The R&D Tax Incentive: Why It Matters
The R&D Tax Incentive is a non-dilutive funding mechanism that helps offset the cost of innovation. For companies under $20M in turnover, it can mean a 43.5% refundable tax offset — a significant cash boost.
For larger or profitable businesses, it’s still a non-refundable offset, reducing tax payable and freeing up capital for reinvestment.
This funding can be used to:
- Hire new technical staff
- Invest in better tooling or prototyping
- Reinvest in continuous improvement projects
- De-risk trials of new product lines or systems
🧾 What You’ll Need
Established businesses often have the R&D activity — but not the structure around it to support a strong claim. The real challenge isn’t doing the work — it’s showing how you did it, why it was necessary, and what you learned.
To make a strong claim, your team needs to demonstrate that your activities address genuine technical uncertainty and follows a systematic progression of work. This goes beyond solving operational issues; it means showing that your project involved investigating problems where the outcome wasn’t known in advance — and where existing industry knowledge couldn’t easily provide a solution.
This is where mature businesses often struggle — not with the R&D itself, but with proving it. That’s where working with an expert advisor like Noah Connect makes the difference.
By building best practices into your innovation processes, you not only strengthen your R&D claims — you also make it easier to scale your innovation efforts sustainably and compliantly over time.
🤝 How Noah Connect Supports Established Businesses
We’ve helped dozens of non-startup companies — from family-run manufacturers to regional engineering firms — successfully:
- Identify eligible R&D activities they hadn’t considered
- Structure their recordkeeping and project management processes
- Lodge new R&D claims with confidence
With our background in science, engineering, and tax strategy, we speak the language of your floor managers, engineers, and accountants alike.
📣 Don’t Leave Money on the Table
Innovation is happening everywhere — not just in tech accelerators. If your business is investing in improvement, it’s time to ask:
👉 Are we claiming what we’re entitled to?
Book a free R&D eligibility assessment with Noah Connect and discover what’s possible.
📅 Stay tuned for more insights as we continue breaking down Australia’s evolving innovation funding landscape.
