Claiming R&D for Cybersecurity Projects
Entering another era of computing automation and democratization means that we produce more data than ever– most of which is sensitive or confidential. The increase in the number as well as the sophistication of cyberattacks are becoming a huge problem for many companies and industries worldwide. Cybersecurity projects, without exaggeration, is becoming a crucial requirement for most organizations. This is especially beneficial for Australia, which is home to many advanced software and hardware technologies that could be a target for these assaults.
If you are a cybersecurity vendor, your eligibility for the R&D tax incentive depends upon the novelty of the methods you used in developing your security tools. If your projects involve software, the structure of your claim will follow the same rules as any other software-related R&D claims. The key metrics for eligible software-related activities are, but are not limited to, the following: there was a lack of existing knowledge in the market; experimentation was required to develop your solutions, and there was technical uncertainty in terms of the outcome of the experiments. Some examples of these activities could include the following:
- Writing new encryption algorithms
- Developing new vulnerability scan techniques
- Improving the current state-of-the-art threat detection methods
- Improving the current state-of-the-art threat response methods
If your company has undertaken similar developments as the list above, these activities may be eligible for the R&D scheme. Take note, these activities should not only be for the purpose of improving your company’s own cybersecurity but rather, something that you can offer to a range of technologies or industries.
We at Innercode can help you assess whether your cybersecurity projects can qualify as R&D activities and guide you into maximising your claim. Innercode is composed of dedicated government grants consultants specialising in the R&D tax incentive for the technology industry. We have many fruitful years of experience delivering and helping companies acquire tax incentives. Through our streamlined process of analyzing claims, we are confident that we can help you determine your eligible projects and activities with just a few hours of your time.