Introduction: The R&D Tax Incentive (RDTI) – Rewarding Kiwi Businesses for Innovation
Innovation drives progress, but it also costs time, talent, and capital. To support that investment, the New Zealand government introduced the R&D Tax Incentive (RDTI) in 2019: a 15% tax credit – often in the form of cash – for eligible R&D activity within a financial year.
It’s designed to reward businesses who are solving complex problems, developing new technologies, or improving products and processes that push scientific or technological boundaries.
And yet, despite billions being spent on R&D across Aotearoa, we estimate that less than 20% of eligible businesses are actually claiming the incentive. That means thousands of companies are missing out on a benefit that could significantly boost their bottom line.
A 15% tax credit on R&D spend might sound modest – but for a business investing $1 million into innovation, that’s $150,000 back in the bank. It’s real money that could fund new equipment, support product development, expand capacity, or invest in skilled talent.
Put simply: if you're innovating and not claiming the RDTI, you're leaving serious value on the table.
At Swell, we believe that’s a missed opportunity – and one we’re on a mission to fix.
Are You Eligible for the RDTI?
If your business is investing in new or improved products, processes, or technologies – there's a good chance you are.
But here’s the catch: eligibility under the RDTI isn’t about what you call R&D internally. It’s about whether your work meets a specific set of scientific or technological criteria defined by the government.
To qualify, your R&D must be:
- Tackling a scientific or technological uncertainty
- Pursued through a systematic approach
- Aimed at creating new knowledge or materially improving a product, service, or process
In other words, if you're pushing the boundaries of what's known or technically possible, you may well qualify.
The tricky part? Making that case clearly, with the right evidence and structure. That’s where Swell comes in.
RDTI, Without the Headache: How Swell Helps
For many businesses, the RDTI process is a headache they simply don’t have time for. Navigating the legislation, figuring out what qualifies, and recording activities in the precise way the IRD requires – it's complex, time-consuming, and easy to get wrong.
That’s exactly why Swell exists.
We take the burden off your hands, managing the process from start to finish so you can stay focused on what matters most: innovating, building, and growing your business.
Here’s how we help:
- Clarify your eligibility – We assess your activity against IRD’s five key tests to determine if it qualifies.
- Translate your R&D into the right language – We turn technical work into clear, compliant documentation that ticks all the boxes.
- Manage the full application – From technical narratives to financial records, we prepare everything IRD needs.
- Handle the back-and-forth with IRD – We handle the comms with IRD on your behalf.
- Claim with confidence, no funding left behind – We ensure you receive the full funding you’re entitled to – accurately, compliantly, and without the stress.
Real Results with the RDTI: Funding Fuel for Kiwi Innovators
1. MARS Bioimaging – Fuelling Frontier Medical Tech
MARS Bioimaging, a trailblazer in 3D colour X-ray scanners, teamed up with Swell to ensure they were claiming every dollar of eligible innovation funding. In FY24, Swell helped MARS unlock $535,000 through the R&D Tax Incentive (RDTI) and R&D Loss Tax Credit—a timely boost that helped accelerate R&D during a critical growth phase.
2. New Ground Coffee – From Application Setback to $150K Secured
After an in-house RDTI application hit roadblocks, New Ground Coffee engaged Swell to turn things around. Swell resolved application issues and successfully secured $150,000 in R&D tax credits, keeping their innovative coffee technology on track and in growth mode.
3. Fabrum – Simplifying the RDTI for Clean-Tech Innovation
Fabrum, a global leader in cryogenics and green hydrogen systems, turned to Swell for support with their RDTI claim. We simplified the process from end to end—translating complex technical work into a strong, compliant application and ensuring they received the funding they were entitled to.
Could You Be Missing Out?
If your business is developing new products, refining systems, or tackling technical challenges, there's a strong chance you're eligible for the RDTI.
This is funding you’re entitled to, so so don’t leave it sitting on the table.
Think you might be eligible? Get in touch with Swell and let’s find out.