New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 23   Consolidation: research and development

Income Tax Assessment Act 1936

8   After subsection 73BF(3)

Insert:

(3A) Subsection (3B) has effect if:

(a) the head company of a consolidated group or MEC group can deduct an amount under subsection (1) for a section 73BA depreciating asset for a year of income; and

(b) the head company's aggregate research and development amount for the year of income exceeds $20,000; and

(c) the asset was used exclusively for research and development activities since its tax cost was set under Division 701 of the Income Tax Assessment Act 1997.

(3B) The numerator in the formula in subsection (3) is increased by any expenditure on the asset that the head company can deduct under section 73B after the asset's tax cost was set.