Take note of recient ATO comments;
Startups should ensure that activities are generating new knowledge or undertaking experimentation of new technologies; that the technical uncertainty being addressed by the activity is clearly identified; and that the activities claimed are directly related to supporting experimental activities.
Fortunately / typically we are helping to do good work for the ATO, however that service is limited and we highly recommend you seek expert assistance from the likes of www.rimon.com.au
Knowing where your headed is half the battle, so avoiding pitfalls and deadends is an opportunity, not a knock back.
Not all ESIC's are eligible for R&D tax claims.