From williambuck.com: The 2025-2026 Federal Budget allocated $999 million to the ATO to enhance tax compliance activities, which could lead to increased audits for the R&D tax incentive affecting many Australian businesses.

Historical audits for RDTI claims peaked in 2018 and 2019, causing some companies to avoid claiming due to fear of audits, a trend that is starting to resurface as audit activities rise again.

To minimize the risks of RDTI claims being questioned, companies should ensure appropriate documentation, manage related party expenses carefully, and comprehend the implications of funding from government grants.