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Keeping R&D Tax Incentive Records: Persuasive, Not Prescriptive

Do you need to keep records for the R&D Tax Incentive?

When it comes to the R&D Tax Incentive, people often ask, “What records do I need to keep?”. A perfect and reasonable question, but the answer comes with nuance.

A simple answer is yes, of course. But what that looks like will vary depending on the company, the work undertaken, and the people involved. There isn’t a one-size-fits-all list, which can be frustrating and may even deter some businesses from pursuing a viable claim.

There’s a common misconception that you need folders of pristine documents to support a claim. The law doesn’t require that. But experience and recent court decisions make it clear: good documentation makes a big difference.

This article is a practical reflection on how Link R&D Advisory approach recordkeeping with clients, especially when they’re not sure where to start.

What the courts are actually saying.
Some recent decisions help clarify the role of documentation in R&D Tax Incentive claims:

Bogiatto [2020] FCA 1139: “It is a misconception that documentary evidence is the only kind of evidence… The absence of documentary evidence does not mean the testimony would have to be rejected.”
Coal of QLD [2021] FCAFC 54: “A claim isn’t automatically invalid just because of limited documentation — but the Tribunal can consider lack of evidence when assessing eligibility.”
Active Sports [2024] FCA 1346: Where documentation is ordinarily expected, its absence may suggest the claim requirements haven’t been met.
Lakes Oil [2023] AATA 811: “Contemporaneous written evidence… will be highly persuasive” because it shows the activity was carried out in a systematic way.

The takeaway is that documentation is not legally required, but it is practically essential if you want to make a confident and defensible claim.

A claim can’t succeed with no evidence at all, but evidence can take many forms. The ATO and DISR provide guidance on preferred formats, but there is no legislative stipulation on exactly what must be kept.

So, what should you keep?
Start with what you have. Focus on what actually happened, and gather information in the form it exists. Keep it accessible, traceable, and timestamped where possible.

Examples of helpful records include:

Planning documents, whiteboards, or test plans.
Emails showing technical problems or design changes.
Code commits, simulations, spreadsheets.
Meeting notes, field logs, or progress reviews.
Screenshots or photoraphs of builds, tests, and setups.
Anything that shows how you worked through uncertainty.

In short, whatever you can, have, and reflects the process. In the future, you can always improve.

When you look at the DISR guide for records, you will see the evidence required is grouped into three key headings, evidence to show:

Outcome can't be known or determined in advance.
Systematic progression of work.
Generating new knowledge.

Keep these three points in mind when reviewing or collecting evidence. They are a helpful frame for assessing whether your records are supporting the claim you’re making.

Every company and R&D project looks different.
When meeting with companies, we don’t give blanket answers. We guide, review, and recommend. We recognise that every project and activity is different, and people approach innovation in different ways.

An AI company building patient-tracking models may use Git, Figma, or Jira.
A mechanical engineering firm might rely on workshop sketches, fault logs, and test videos.

A founder might simply be forwarding photos and emails captured mid-project.

These are all valid.

The goal of Link R&D Advisory is to work with the way your business operates, not against it.

Where Link R&D Advisory focuses.
We work closely with companies to understand their R&D activities, adapt to their processes, and interpret what’s available. From there, we can build summaries that support the claim, while also identifying areas for future improvement.

Our approach typically includes:

Reviewing and interpreting the records you already hold.
Working with your team to clarify what happened during the year.
Where helpful, suggesting ways to document more effectively going forward.

Creating simple tools or templates to capture activity in real time.

We work to gain confidence in what took place. You don’t need a research lab. You just need to clearly show why and how your team did the work.

Helpful links to start from.

As always, it's worth going directly to the source. The regulatory bodies are the ones who make final decisions. While courts have clarified that verbal declarations or witness statements can be valid, the preference from regulators remains clear: contemporaneous documentation is best.

DISR: Records to Show Elgibility

DISR: Guide to Interpretation

ATO: Checklist for Claiming

Final thoughts.
Some companies feel overwhelmed. Others are structured but know there’s room for improvement. Either way, the goal isn’t perfection. Sometimes that’s just not realistic.

The goal is progress, confidence, and supporting your claim as well as possible.