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New Zealand’s Research & Development Tax Incentive (RDTI) has quietly hit an important milestone. Five years on from its introduction, the first independent review has landed. The results paint a positive picture for businesses investing in innovation.
The RDTI was designed to lift private-sector R&D by offering a 15% tax credit on eligible expenditure. The intention was simple. Make innovation easier to fund. Boost competitiveness. Strengthen NZ’s long-term economic growth.
Now we finally have data to show what’s working.
What the evaluation shows
The review, completed by Motu Research with support from the University of Otago, reveals a scheme that is delivering tangible gains – not just for early adopters, but for the wider economy.
Key findings include:
- 1,752 businesses have claimed the RDTI between 2020 and 2024, receiving approximately $1 billion in tax credits.
- Supported firms invested an average of $274,000 more per year into R&D than they would have without the incentive.
- This uplift equates to $1.83 billion in additional R&D activity across the economy.
- For every $1 of government support, businesses spent $1.40 of their own funds on extra R&D.
- Mid-range modelling points to $6.77 billion in economic benefit, around 4.2 times the government’s investment.
- Businesses consistently reported positive impacts on R&D capability, confidence, and growth. They also highlighted how important it is to have stable policy settings that give long-term certainty.
In short. The scheme is doing what it was designed to do. And it’s laying a foundation for stronger innovation over the next decade.
Why the support ecosystem matters
One key insight from the review was the impact of the support wrapped around the scheme. For many SMEs or early-stage innovators, knowing where to begin is often the biggest barrier.
That’s where advisory partners like RSM NZ play a pivotal role.
Our specialists are working with businesses across the country to help them:
- understand eligibility,
- document their R&D activity accurately,
- prepare claims efficiently, and
- build repeatable processes year-on-year.
The review noted that hands-on support significantly increases uptake and confidence, particularly for smaller firms or first-time claimants. When businesses feel guided. They invest more boldly. They innovate more consistently.
What this means for NZ businesses right now
If you’re developing new products, processes, technologies, or software. Or if you want to scale your R&D footprint without carrying the full cost burden. This incentive remains one of the most valuable levers available.
And with the first five-year review confirming strong economic returns, the RDTI looks set to remain a central pillar in NZ’s innovation landscape.
If you’re considering an RDTI claim
Now is an ideal time to explore how the incentive could benefit your business. Whether you’re a first-time claimant or you want to strengthen your next application, the earlier you understand the requirements, the smoother the process becomes.
If you’d like clarity on eligibility or want support preparing your claim, the RSM team can walk you through it.
(With thanks to rdti.govt.nz for data and insights)
