Want to claim the right grants?
Australia is rolling out the red carpet for global investors, but only for those prepared to make the right move. If you’re expanding into Australia, understanding Australia tax incentives for foreign investors isn’t optional, it’s how you turn opportunity into advantage.
In this guide, we unpack the most valuable incentives available in 2026, reveal who qualifies (and who doesn’t), and show you how to access them step by step. By the end, you’ll know exactly how to structure, comply, and claim what your investment is entitled to.
8 key Australian government incentives for foreigners
1. R&D Tax Incentive (RDTI)
A core example of Australia tax incentives is the R&D Tax Incentive, which offers refundable tax offsets for eligible research activities.
The R&D Tax Incentive is one of the most accessible ways for foreign-owned companies with an Australian entity to unlock real cash benefits. It’s not a competitive grant, it’s a tax entitlement if your R&D activities meet the eligibility tests.
In simple terms, if you run eligible R&D in Australia through an Australian company, you can get cash back or reduce your tax bill on qualifying costs.
Here’s how it works:
- Smaller groups (< A$20m turnover): Receive a refundable offset equal to your company tax rate + 18.5%. For most small companies at 25%, that’s around 43.5% back on eligible R&D spend, refundable as cash if it exceeds your tax bill.
- Larger groups (≥ A$20m): Get a non-refundable offset at your company rate + 8.5% (for R&D intensity up to 2%), and +16.5% beyond that. It reduces your payable tax and can be carried forward.
Who it suits: Tech, advanced manufacturing, biotech, ag-tech, and clean energy companies solving genuine technical challenges
You’ll need to register your R&D activities with AusIndustry each year before claiming through your company tax return. The work must be done in Australia (with limited overseas exceptions)
2. Clean Energy Co-Investment (CEFC) & ARENA Grants
If you’re investing in renewables, storage, EV infrastructure, or low-carbon manufacturing, the CEFC and ARENA are your go-to public finance partners.
Here’s how they support investors:
- CEFC invests debt/equity to crowd-in private capital for net-zero projects.
- ARENA provides grants for demonstration and commercialisation of new energy tech.
What this actually means for you:
- CEFC can anchor your project financing (think: senior debt, mezz, or equity co-invest) to lower cost of capital.
- ARENA can de-risk first-of-kind deployments with non-dilutive grant funding.
Who it suits: Grid-scale solar, wind, BESS, hydrogen pilots, e-fuels, industrial electrification, circular economy plays.
Both target additionality and strong emissions impact; projects must be investment-grade with credible counterparties.
3. Capacity Investment Scheme (CIS)
Looking to back renewables or big batteries? The Capacity Investment Scheme (CIS) is your gateway.
- It’s a national revenue-underwriting program that helps make large-scale storage and firming projects bankable by providing predictable, long-term income.
- CIS contracts de-risk merchant volatility, meaning lenders get more comfortable, and your project’s debt and equity returns look stronger.
To get in, you’ll need to tender competitively and come prepared with
- A solid delivery plan
- Grid access strategy
- The revenue model will make your bid stand out
2025 update: In September 2025, CIS Tender 3 awarded about 4.13 GW / 15.37 GWh of battery storage across 16 projects in the NEM, via competitive tenders run by DCCEEW; winners proceed to sign a CISA with the Commonwealth.
4. Export Market Development Grants (EMDG)
If your Australian entity is going global, the Export Market Development Grant (EMDG) can help fund your international marketing push. It co-funds export marketing costs for up to two years. It is ideal for businesses testing or scaling overseas markets.
Round 4 issues two-year grant agreements (FY2025-26 and FY2026-27) and is demand-driven: applications are assessed strictly in order of receipt (timestamp) until each tier’s funding is exhausted, so lodging early materially improves your chances; not all eligible applicants are funded.
You’ll need:
- Australian-registered business
- Plan your eligible costs up front
- Apply within the open round window to lock in your grant agreement.
How Much Does It Cost To Incorporate A Company In Australia?
5. Build-to-Rent (BTR)
If you’re a global property or infrastructure investor, Australia’s Build-to-Rent (BTR)incentives make projects more financially attractive than ever.
Eligible BTR developments now enjoy:
- 4% annual capital works deduction (faster depreciation and better cash flow), and
- 15% MIT withholding rate on eligible fund payments, compared to the standard 30%.
To use the concessions you must opt in with the ATO and keep meeting the rules over a 15-year compliance period, benefits apply only while eligibility is maintained. A misuse tax/cessation rule can apply if you breach requirements.
Bonus state perks:
- Exemption from surcharge purchaser duty (to 2040) for new BTR projects
- Exemption from surcharge land tax for eligible BTR
- A permanent 50% reduction in assessed land value for ordinary land tax on eligible new BTR from the 2026 land-tax year
You’ll need to opt-in with the ATO, meet design and tenancy mix rules, and maintain eligibility over the compliance period.
6. State & Territory Investment Attraction (Negotiated)
Beyond published schemes, state governments often cut bespoke deals for major or strategic projects.
Here’s how it works:
- In NSW, the Investment Delivery Authority helps major (including international) projects move through approvals faster.
- In Victoria, Invest Victoria acts as your single gateway, offering case management and access to tailored incentives.
Bring a strong business case and economic impact story. If your project creates jobs, exports, or capability in priority sectors, states are often ready to back you.
7. Digital Games Tax Offset (DGTO)
If you’re building or scaling a game studio in Australia, the Digital Games Tax Offset (DGTO) is one of the most powerful incentives on offer with a 30% refundable tax offset on qualifying Australian development costs.
Here’s how it works:
- Claim 30% back on eligible dev expenditure (capped at A$20m per year per group).
- Minimum qualifying spend: A$500k.
- Applies to new games, ports, or live-ops.
However, you’ll need a certificate from the Arts Minister, managed by the Office for the Arts, before claiming in your company tax return. It’s real cash flow support for scaling teams and content pipelines and applications are open year-round.
8. Major Projects Facilitation Agency (MPFA)
MPFA is a critical service for investors with large, complex projects (typically over A$20 million).
This is your VIP pass through Australia’s regulatory environment.
- The MPFA helps you navigate the complex web of planning, environmental, and state/federal approvals required for major projects.
- Their involvement signals to all levels of government that your project is significant.
- This de-risks your investment, reduces the potential for costly delays, and significantly shortens your timeline
If you’re a local founder, read about what government grants your startup can apply for in 2026?
Eligibility and exclusions: Who qualifies for government incentives?
To qualify for many Australia tax incentives, foreign-owned companies need to meet specific activity and reporting requirements.
For example, Foreign investors must meet FIRB rules and structure their operations through an eligible Australian company to access incentives like the R&D Tax Incentive.
1. FIRB approval requirements
Most investments by “foreign persons” must be screened under the Foreign Acquisitions and Takeovers Act 1975 (FATA). The Treasury has adopted a performance target to process 50% of proposals within 30 days (from 1 Jan 2025), and has launched a new Foreign Investment Portal to streamline applications and compliance. Final decisions rest with the Treasurer, advised by FIRB.
- You still need approval where thresholds or sector triggers apply, but low-risk, non-sensitive deals should move faster if your docs are clean.
- Use the Foreign Investment Portal to lodge applications, pay fees and file compliance reports. Thresholds index every 1 January, so check the current table before signing.
- Sensitive sectors (critical infrastructure/tech, data, proximity to government facilities, critical minerals, energy) get more scrutiny, so expect deeper questions and conditions.
2. Residency, entity type & ownership (for incentives like R&DTI)
To claim the R&D Tax Incentive, you must be an R&D entity (company) and register each year; individuals, partnerships and (most) trusts can’t claim. Overseas R&D generally requires an Overseas Finding. Group rules apply for consolidated/MEC groups (the head company claims).
- Set up an Australian company(or operate via a DTA-resident company with an Australian PE) if you want to bank R&DTI reliably.
- If you’re foreign-owned, eligibility is fine, as long as the Australian entity is the R&D entity and the R&D happens in Australia (or you’ve secured an Overseas Finding before claiming those overseas activities).
- Register within 10 months of year-end; miss it and you risk losing the year.
Who is excluded (common pitfalls):
- Individuals; partnerships (the partners may claim if each is an R&D entity, but the partnership itself cannot)
- Trusts (except a body corporate acting as trustee of a public trading trust)
- Exempt entities whose income is entirely tax-exempt.
3. Sectors under stricter scrutiny (plan for this)
National-security-sensitive proposals face deeper review, critical infrastructure or tech/data, critical minerals, energy/utilities, and assets near sensitive sites.
- Build a risk-mitigation pack (ownership transparency, data security, local governance, cyber posture, supply-chain assurances, revenue/operations in Australia).
- Expect conditions (reporting, tax integrity, audit) baked into your no-objection notification.
4 steps to accessing Australian government incentives as a foreign founder
To unlock Australian incentives, set up the right entity, focus on eligible activities, and ensure compliant, well-documented applications under FIRB or R&DTI.
1) Choose the right structure (subsidiary vs branch/PE)
- For example, R&DTI, an Australian company, is the cleanest path; PE structures can work under DTA rules but are more complex. Keep ownership simple and transparent, complex “black boxes” slow FIRB.
2) Align your project with eligible/lower-risk activities
- Lean into R&D, clean energy, manufacturing value-add; if you’re in a sensitive sector, pre-empt issues with documented controls and Australian economic benefits.
3) Apply under the correct program
- FIRB/Treasury: Use the Foreign Investment Portal, reference the current thresholds, lodge a conditional agreement (subject to FIRB) where appropriate, and disclose fully (ownership, funding, structure, tax, risk mitigations). Decision by Treasurer (FIRB advisory).
- R&DTI: Register activities with AusIndustry within 10 months, secure an Overseas Finding before claiming any offshore R&D, and keep robust technical + cost records. The ATO separately reviews claims in the tax return.
4) Maintain ongoing reporting & compliance
- Meet any FIRB conditions and file compliance reports on time
- Register foreign ownership events with the ATO-run Register of Foreign Ownership of Australian Assets (generally 30 days to notify).
How Sleek can help
Expanding into Australia is exciting, but choosing the right structure, navigating FIRB rules, and unlocking the best government incentives can feel like a maze. That’s where we come in.
At Sleek, we help global investors and founders set up seamlessly in Australia, from choosing the right entity and meeting local residency rules, to staying compliant and qualifying for grants, offsets, and co-investment programs that maximise returns.
Here’s how we make it simple:
- Find & qualify incentives: The experts will identify the best government incentives/grants for your situation, check eligibility, and guide your documentation.
- Set up in Australia (for foreigners): Company registration, ABN/TFN, GST, ASIC filings, structured to suit your goals and banking needs.
- Compliance done-for-you: Payroll, BAS/GST, year-end financials, company tax so you never miss a deadline again.
- Transparent pricing: Fixed monthly, all-inclusive plans. No hidden fees.
Whether you’re launching a tech venture, green energy project, or investment vehicle, we’ll help you structure it right, stay compliant, and capture every opportunity Australia offers.
Ready to explore your incentives?
Book a free consultation and we’ll map out the government support, structure, and setup path best suited to your investment, all in one place.
FAQs on government incentives for foreigners in Australia
Australia tax incentives are government-backed tax concessions, offsets, and deductions designed to lower the cost of doing business in Australia, including R&D Tax Incentive, export market concessions, and certain capital allowances.
Not directly. To qualify, you need to be an R&D entity under Australian law, either an Australian-incorporated company or a foreign company that’s an Australian tax resident (or from a DTA country with a permanent establishment in Australia). Without that presence, you can’t register or claim. Sleek helps set up the right entity structure so you don’t miss out.
Incentives like Build-to-Rent (BTR) or government grants have clawback provisions, meaning you could lose benefits or face penalties if you breach design, tenure, or reporting conditions. Sleek manages your compliance calendar, filings, and documentation, helping you stay eligible through the entire compliance period.
Yes, if structured correctly. Many federal and state incentives can work in tandem, but eligibility and reporting rules differ. Therefore, it is important to seek professional advice before proceeding.
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