Item 5 R&D expenditure - Feedstock input expenditure

Write at item 5 'R&D expenditure - Feedstock input expenditure' the total amount of expenditure incurred in the income year on acquiring or producing feedstock inputs which are transformed or processed during R&D activities in producing one or more tangible products (feedstock outputs).

Feedstock input expenditure also includes:

• the total cost of energy input directly into the transformation or processing, and
• the decline in value of assets used in acquiring or producing the feedstock inputs to these R&D activities.

Separate your expenditure at item 5 between Australian owned R&D activities (label I) and foreign owned R&D activities (label J).

You cannot claim this type of expenditure on R&D activities unless your total notional deduction amount is at least $20,000.

An amount included in Feedstock input expenditure must not also be included at any other label in Part A.

The amount to be shown at this label may not form part of any feedstock adjustment in the 2011-12 year. However, it will represent expenditure on feedstock inputs and should be recorded separately from the other expenditure types in Part A. It may be expenditure to be taken into account in calculating the amount of a feedstock adjustment in the current or a future year (see Part B - Feedstock).