Outcome not known or determined in advance
Explaining technical uncertainty and why predictable outcomes do not qualify as Core R&D.
1. Overview
For an activity to qualify as Core R&D under Division 355, the outcome of the activity must not be known or able to be determined in advance.
This requirement reflects the presence of genuine technical uncertainty.
If a competent professional in the field could determine the outcome using existing publicly available knowledge, the activity is unlikely to qualify as Core R&D.
The uncertainty must relate to scientific or technical knowledge, not commercial risk or market uncertainty.
2. Why This Matters for R&D Compliance
This requirement is closely linked to the concepts of experimentation and new knowledge.
An activity does not qualify as Core R&D if:
- The outcome was predictable using standard engineering or development practices
- The solution was already documented in industry literature
- The activity involved routine application of known techniques
The key question is:
At the outset of the activity, was there genuine uncertainty that could not be resolved without experimentation?
If the answer is no, the activity is unlikely to meet the eligibility threshold
3. How It Works in Synnch
When documenting a Core R&D activity in Synnch, you should clearly articulate:
- What was unknown at the start of the activity
- Why existing knowledge could not resolve the issue
- What hypotheses were tested
- How experimentation was structured
- What technical insight was gained
Avoid describing:
- Commercial goals
- Customer requirements
- Product features
- Delivery deadlines
The focus should remain on the technical uncertainty and how it was addressed through experimentation.
Clear articulation of uncertainty strengthens the defensibility of your R&D claim.
4. Practical Example
A company is developing a new battery configuration designed to improve energy density.
While existing configurations are documented, it is uncertain whether a new material combination will achieve the required performance threshold without compromising safety.
The team conducts controlled experiments to test various configurations.
At the outset, it was not possible to determine whether the target performance metrics could be achieved.
Because the outcome was not known in advance and required experimentation to resolve, the activity may qualify as Core R&D.
5. Common Mistakes
- Confusing commercial uncertainty with technical uncertainty
- Claiming predictable engineering work as experimental
- Failing to document why the outcome could not be determined in advance
- Relying on internal assumptions without evidence of experimentation
- Describing objectives instead of uncertainty