What is the Australian R&D Tax Incentive? +
A government program providing tax offsets for eligible R&D activities conducted by Australian companies. It's designed to encourage innovation by offsetting some of the costs of research and development, for startups, SMEs, and larger corporations alike.
Who is eligible for the R&D Tax Incentive? +
Australian companies that spend money on eligible R&D activities can claim. Your R&D work must be conducted in Australia and meet specific eligibility criteria set by AusIndustry.
How does Avanzu integrate with Xero? +
Avanzu connects directly to Xero via OAuth. Once connected, we automatically sync your chart of accounts, transactions, employees, and assets. Only the account owner needs Xero access, you can invite team members to help allocate without sharing Xero credentials.
Do I need to give my accountant access to Xero? +
No, that's a key Avanzu feature. Only the account owner needs Xero access. Invite your accountant or bookkeeper with permission-based access to help with allocations, without sharing your Xero login.
What are core and supporting R&D activities? +
Core R&D activities are experimental activities aimed at generating new knowledge. Supporting activities directly relate to core activities, like testing, trial production, or analysis. Both can be claimed, and Avanzu tracks costs separately for each.
Can I write a new plan from scratch? +
Yes. Our AI-powered assistant helps you create comprehensive R&D plans from scratch, guiding you through activity descriptions, budgets, and AusIndustry requirements. It's like having an R&D compliance expert available 24/7.
Do I need an existing plan to use the AI? +
No. The AI works two ways, start completely from scratch, or enhance and improve plans you've already created. Whether beginning a new project or refining current documentation, it provides expert guidance for compliance.
How do transaction allocations work? +
Each Xero transaction can be allocated across your R&D activities using percentages. Allocations must total either 0% (excluded) or 100% (fully allocated). For example, a software subscription could be 60% to one core activity and 40% to a supporting activity.
Can I set up automatic allocation rules? +
Yes. Set a rule at the account level (like "Cloud Hosting") and all transactions in that account are pre-filled with your specified percentages, saving time on repetitive allocations.
How do employee allocations work? +
Allocate employee time across activities by percentage. Set what portion of an employee's time is on the R&D project overall, then distribute across activities. Avanzu calculates the cost automatically from Xero salary data.
Can I hide employee salary information from my team? +
Yes. Permission-based access lets team members allocate employee time without seeing salary amounts, perfect for involving bookkeepers or junior staff while keeping compensation private.
How is my R&D rebate calculated? +
Avanzu tracks all allocated costs, transactions, employee salaries, and asset depreciation, and calculates your estimated rebate in real time based on current R&D Tax Incentive rates. It updates as you allocate through the year.
What tax year does Avanzu track? +
Subscriptions align with the Australian financial year (1 July – 30 June). Each project is associated with a specific tax year, and Avanzu filters Xero transactions to match that period.
Can I export my data for my accountant? +
Absolutely. Avanzu generates comprehensive Excel spreadsheets with your full R&D accounts, activity allocations, and project details, designed to integrate with existing workflows and provide everything needed for AusIndustry submission.
Can I manage multiple R&D projects? +
Yes. Avanzu supports unlimited R&D projects per subscription, useful for multiple research initiatives or separate projects across tax years. Each has its own activities, allocations, and reporting.
Is my data secure? +
Yes. Avanzu uses industry-standard encryption for data transmission and storage, connects to Xero via secure OAuth (no password sharing), and hosts on enterprise-grade infrastructure. We never sell or share your data.
How do I get started? +
Sign up, connect your Xero organisation, create your first R&D project, define your core and supporting activities, then start allocating transactions. The onboarding guides each step, and you'll see a rebate estimate within minutes.
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