(relevant to Australian owned and foreign owned R&D)
Enter at this item expenditure incurred by an eligible company to an RRA for the performance by the RRA of research and development activities on behalf of the company or wholly or primarily on behalf of a grouped foreign company.
The RRA must not be an associate of the eligible company, and must have been registered with Innovation Australia in respect of the class of activities on which the expenditure was incurred.
Expenditure on Australian owned R&D cannot be contracted expenditure unless, when the expenditure was incurred, the eligible company was capable of using, or had formulated a plan to use, any results of the R&D directly in connection with a business that the company carried on or proposed to carry on (subsection 73B(1B) of the ITAA 1936). This restriction does not apply to expenditure incurred on foreign owned R&D.
At item 1 enter eligible expenditure on items included in paragraph (c) of the definition of 'contracted expenditure' under subsection 73B(1) of the ITAA 1936. These amounts should be adjusted as required under subsection 73B(11) of the ITAA 1936 for advance and accelerated expenditure.
At A enter the total amount of eligible contracted expenditure (the base amount).
At B enter any amount of the contracted expenditure on Australian owned R&D claimable at 100%.
At C enter any amount of the contracted expenditure on Australian owned R&D claimable at 125%.
At D enter any amount of the contracted expenditure on foreign owned R&D .
The total of the amounts at B, C and D must equal the base amount at A otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.
End of attentionMore information
For more information see:
- subsections 73B(1) and 73B(1B) of the ITAA 1936
- Guide to the R&D tax concession