(relevant to Australian owned R&D only)
Item 5 is a component of paragraph (c) of the definition of research and development expenditure in subsection 73B(1) of the ITAA 1936. You will need to include any eligible expenditure incurred in the hire or leasing of an item of plant that is directly in respect of Australian owned R&D activities.
You cannot claim this type of expenditure in respect of Australian owned R&D unless your aggregate R&D amount is greater than $20,000.
Adjust the amount of plant leasing expenditure claimed in accordance with the prepayment provisions (sections 82KZL to 82KZMF of ITAA 1936).
At R enter the total amount of expenditure incurred on plant leasing for Australian owned R&D (the base amount). Only include plant leasing in respect of Australian owned R&D if your aggregate R&D amount is greater than $20,000.
At S enter any amount of the plant leasing expenditure on Australian owned R&D claimable at 100%.
At T enter any amount of the plant leasing expenditure on Australian owned R&D claimable at 125%.
The total of the amounts at S and T must equal the base amount at R otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.
More information
For more information, see:
- subsection 73B(1) of the ITAA 1936
- Guide to the R&D tax concession.