Write at item 2 'R&D expenditure - Contract expenditure (not RSP)' the amount of expenditure you have incurred under a contract to another party (other than an RSP), to the extent that it has been incurred on R&D activities.
Apportion the company's expenditure between R&D activities and other activities that the company undertakes. Show expenditure on R&D activities only at this label.
Separate the expenditure at item 2 between Australian owned R&D activities (label C) and foreign owned R&D activities (label D).
Do not show any amounts at this label for expenditure incurred to an associate. If you have entered into a contract with your associate, you are only eligible to claim the amount incurred in the income year to the extent it is paid. Amounts paid to an associate are shown at Part A, item 6. You also need to provide further details of expenditure to your associates in Part D - R&D expenditure to associates.
You cannot claim this type of expenditure on R&D activities unless your total notional deduction amount is at least $20,000.
For further information about what amounts may be claimed as 'Contract expenditure' see Expenditure you incur under contract to other parties in our guide Research and development tax incentive - amounts you can claim.
For further information about apportioning your expenditure between R&D activities and non-R&D activities, see Research and development tax incentive - Keeping records and calculating your notional deductions.
End of further information