Tax Laws Amendment (Research and Development) Act 2011 (93 of 2011)

Schedule 3   Other amendments relating to new R&D incentive

Part 1   Tax offset rules

Income Tax Assessment Act 1997

4   At the end of Division 67

Add:

67-30 Refundable tax offsets - R&D

(1) A *tax offset to which an *R&D entity is entitled under section 355-100 (about R&D) for an income year is subject to the refundable tax offset rules if the amount of the tax offset is worked out using the percentage in item 1 of the table in subsection 355-100(1).

Note 1: Otherwise, the tax offset will be a non-refundable tax offset (see item 35 of the table in subsection 63-10(1)).

Note 2: This subsection can apply to an entitlement under subsection 355-100(1) or (2).

(2) Without limiting its effect apart from this subsection, subsection (1) also has the effect it would have if:

(a) subsection (3) had not been enacted; and

(b) the reference in subsection (1) to an *R&D entity were, by express provision, confined to an R&D entity that:

(i) is a *constitutional corporation; or

(ii) has its registered office (within the meaning of the Corporations Act 2001) or principal place of business (within the meaning of that Act) located in a Territory.

(3) Without limiting its effect apart from this subsection, subsection (1) also has the effect it would have if:

(a) subsection (2) had not been enacted; and

(b) this Act applied so that *tax offsets under section 355-100 could only be worked out in respect of *R&D activities conducted or to be conducted:

(i) solely in a Territory; or

(ii) solely outside of Australia; or

(iii) solely in a Territory and outside of Australia; or

(iv) for the dominant purpose of supporting *core R&D activities conducted, or to be conducted, solely in a Territory.