Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.205

  (1)   An * R&D entity can deduct for an income year (the present year ) expenditure it incurs during that year to the extent that the expenditure:

  (a)   is incurred on one or more * R&D activities:

  (i)   for which the R&D entity is registered under section   27A of the Industry Research and Development Act 1986 for an income year; and

  (ii)   that are activities to which section   355 - 210 (conditions for R&D activities) applies; and

  (b)   if the expenditure is incurred to the R&D entity's * associate--is paid to that associate during the present year.

Note 1:   If the matters in subparagraphs   (a)(i) and (ii) are not satisfied until a later income year, the R&D entity will need to wait until then before it can deduct the expenditure for the present year.

Note 2:   The R&D activities will need to be conducted during the income year the R&D entity is registered for those activities (see sections   27A and 27J of the Industry Research and Development Act 1986 ).

Note 3:   The entity may also be able to deduct expenditure incurred to an associate in an earlier income year (see section   355 - 480).

Note 4:   Expenditure incurred in income years starting on or after 1   July 2011 may be deductible for activities registered for income years starting before 1   July 2011 (see section   355 - 200 of the Income Tax (Transitional Provisions) Act 1997 ).

  (2)   This section has effect subject to section   355 - 225 (excluded expenditure), Subdivision   355 - F (integrity rules) and subsection   355 - 580(3) (CRC contributions).