This is a program jointly administered by AusIndustry and the Australian Taxation Office (ATO).

The incentive acts to encourage companies to engage in Research and Development activities.

According to section 355 - 20 of Tax Laws Amendment (Research and Development) Act 2011 and also the ATO, Core R & D Activities are experimental activities whose outcome cannot be known or determined in advance on the basis of current knowledge, but can only be determined by applying a systematic progression of work.