Last Updated on 30/03/2026 by Damin Murdock
The recent threat of 25% tariffs on Canadian exports by the United States has created uncertainty for Canadian businesses. To remain competitive, Canadian companies are looking beyond the United States, and we have published a series of articles explaining why Australia offers many opportunities to Canadian businesses.
Canadian businesses already export electrical and mechanical equipment used in the agricultural, industrial and construction equipment; aluminium products for the construction industry; medical devices; pharmaceuticals and chemicals used for prescription drugs and manufacturing; raw pulp, finished paper and wood products; agricultural products and seafood. When looking at services, Australia is a quick adaptor to technology and many Canadian businesses have expanded their services to Australia due to Australia being a good test market for artificial intelligence, cyber security and innovative technology.
R&D Tax Incentives
Canadian products may not be suitable for the Australian environment, as Canadian products have been tested and manufactured for cold environments, whereas Australia has a hotter, dryer and possibly wetter environment. It is the Australian government’s research and development tax incentives that provide Canadian businesses with a great environment to undertake R&D to adapt their products for the Australian climate.
The R&D tax incentive provides businesses with a 43.5% refundable tax offset for businesses with under $20 million in revenue. This incentive is similar to the Scientific Research and Experimental Development (SR&ED) program offered by the Canadian government. The main catch is that your Australian subsidiary entity will be required to own your newly developed modification, improvement or enhancement to your Canadian product to be eligible for the R&D tax incentive, but unlike Canada, the R&D tax incentive is guaranteed funding to all eligible companies, and there are no competitive grant processes. Further, the R&D tax incentive does not have an “Australian-controlled” ownership rule, unlike the SR&ED which require Canadian companies to be controlled by Canadians to obtain the SR&ED.
Company Incorporation
To incorporate a subsidiary in Australia, you require an Australian resident director. Sometimes, this may be difficult for a Canadian business, and this is why Leo Lawyers offers local director services; virtual office services; bank account facilitation; and other corporate compliance services. If we are unable to assist, then we have third-party suppliers who we have worked with over many years to assist you in your requirements, including tax advisors and accountants.
About Leo Lawyers
Damin Murdock is from the Ottawa Valley; a graduate from the University of Western Ontario (Finance); holds a Juris Doctor from Australia (International Trade Law); a Masters of Laws from Erasmus University Rotterdam (International Business Transactions); President of the Canadian Australian Club (Sydney); and Treasurer of the North American Australian Lawyers Alliance.
If you have any questions in relation to this article,
Feel free to contact Damin Murdock at Leo Lawyers via our website, on (02) 8201 0051 or at office@leolawyers.com.au. Further, if you liked this article, please subscribe to newsletter via our Website, and subscribe to our YouTube , LinkedIn, Facebook and Instagram. If you liked this article or video, please also give us a favourable Google Review.
DISCLAIMER: This is not legal advice and is general information only. You should not rely upon the information contained in this article and if you require specific legal advice, please contact us.
Damin Murdock (J.D | LL.M | BACS - Finance) is a seasoned commercial lawyer with over 17 years of experience, recognised as a trusted legal advisor and courtroom advocate who has built a formidable reputation for delivering strategic legal solutions across corporate, commercial, construction, and technology law. He has held senior leadership positions, including director of a national Australian law firm, principal lawyer of MurdockCheng Legal Practice, and Chief Legal Officer of Lawpath, Australia's largest legal technology platform. Throughout his career, Damin has personally advised more than 2,000 startups and SMEs, earning over 300 five-star reviews from satisfied clients who value his clear communication, commercial pragmatism, and in-depth legal knowledge. As an established legal thought leader, he has hosted over 100 webinars and legal videos that have attracted tens of thousands of views, reinforcing his trusted authority in both legal and business communities."
