Advance and overseas findings: Australia

Registration records activities; it does not decide that they are eligible. For companies that want certainty, or that need to conduct part of their R&D outside Australia, the Industry Research and Development Act provides findings: binding decisions by the department, on behalf of Industry Innovation and Science Australia, made in advance. An Advance Finding settles whether activities are core or supporting R&D activities. An Overseas Finding allows expenditure on activities conducted overseas to be claimed, which is otherwise excluded. Both must be applied for before the end of the income year in which the activity is conducted.

What it is

Who it applies to

Advance Findings suit companies with large or unusual activities, first-time claimants who want certainty before committing spend, and companies whose work sits near an exclusion, such as software or standards testing. They are voluntary; most registrants never apply for one.

Overseas Findings are compulsory for anyone who wants to claim expenditure on activities conducted outside Australia. The four conditions are strict:

1. The overseas activity has a significant scientific link to a core activity conducted in Australia.
2. It cannot be conducted in Australia, for one of the listed reasons: a facility, expertise or equipment not available in Australia, a population of living things not available in Australia, a quarantine law, or conditions not available in Australia.
3. Expenditure on all the overseas activities, over the life of the project, is less than expenditure on the Australian activities.
4. The activity is itself a core or supporting R&D activity.

Cost is not a listed reason. A clinical trial for a tropical disease with no Australian patient population qualifies; offshore software development because it is cheaper does not.

How it works

1. Apply through the customer portal before the end of the income year in which the activity is, or will be, conducted. The application describes the activities in the same terms as a registration and, for an Overseas Finding, addresses each of the four conditions with evidence, including a budget comparing Australian and overseas spend across the project.
2. Respond to questions. The department may seek further information or meet the technical staff.
3. Receive the finding. A certificate states which activities are covered and for which years. The department aims to decide within a published timeframe, but the finding can issue after the year ends provided the application was in time.
4. Register as usual, quoting the finding, and claim the expenditure through the schedule.
5. Conduct the activities as described. A finding binds only to the extent the work matches the application; material changes need a new application.
6. Review rights. A negative finding can be taken to internal review and then the Administrative Review Tribunal.

Worked example

Illustrative example. Noosa Biologics Pty Ltd, a hypothetical company with a 30 June year end, is developing a vaccine candidate for a disease with no cases in Australia. Its Australian laboratory work is a core activity costing A$1.8 million over the project. A phase 1 trial can only be run in a country where the disease is endemic, at a cost of A$1.2 million. In March 2026, before the trial starts in May, Noosa applies for an Overseas Finding: the trial has a significant scientific link to the Australian core activity, cannot be conducted in Australia because the patient population is not available here, costs less than the Australian work, and is itself a core activity. The finding issues in September 2026. Noosa registers the trial for 2025-26 and 2026-27 with the finding reference and claims the overseas expenditure in both years. Had it applied in July 2026, after the income year in which the trial began, the May and June spend would have been lost.

Common questions

Do we need an Advance Finding to claim? No. Registration is enough to claim; a finding gives certainty.

Can an Overseas Finding cover a contractor abroad? Yes, if the four conditions are met. The usual failure is the second condition: the work could have been done in Australia.

What if overseas spend ends up higher than planned? If overseas expenditure exceeds Australian expenditure across the project, the condition fails and the overseas expenditure is not deductible for the years affected.

How long does a finding take? Months rather than weeks. Apply early in the year the activity starts.

Related pages

• The Australia-only rule
• Registration alongside findings
• The end-of-year deadline for findings
• How the seven countries treat overseas work
• Program: Advisor and Practitioner Program