Income Tax Assessment Act 1936

Div 3 heading inserted by No 172 of 1978.

S 73QA repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s 82KZLB . S 73QA formerly read:

SECTION 73QA EXTRA DEDUCTION FOR INCREASE IN EXPENDITURE ON AUSTRALIAN OWNED RESEARCH AND DEVELOPMENT  
Prerequisites for deduction

73QA(1)
An eligible company may deduct an amount for the Y ₀ year of income if:

(a) the company can deduct an amount for that year under subsection 73B(13) or (14) for incremental expenditure incurred in the company ' s group membership period; and

(b) for each of the Y _-1 , Y _-2 and Y _-3 years of income, any of the following conditions is met:

(i) the eligible company could deduct for the year of income an amount under subsection 73B(13) or (14) for expenditure incurred in its group membership period;

(ii) one of the eligible company ' s other group members could deduct for the year of income an amount under subsection 73B(13) or (14) for expenditure incurred in its group membership period;

(iii) the eligible company received a start grant or commercial ready grant in respect of the year of income;

(iv) one of the eligible company ' s other group members received a start grant or commercial ready grant in respect of the year of income;

(whether or not the same condition is met for 2 or more of those years, and whether or not a condition is met by the same company for 2 or more of those years); and

(c) the amount (the eligible company ' s share of the Australian owned part of the adjusted increase in expenditure on R & D by the group ) worked out under subsection (3) is more than zero.

Amount of deduction

73QA(2)
The amount of the eligible company ' s deduction for the Y ₀ year of income is 50% of the eligible company ' s share of the Australian owned part of the adjusted increase in expenditure on R & D by the group.

73QA(3)
The eligible company ' s share of the Australian owned part of the adjusted increase in expenditure on R & D by the group is the amount worked out using the formula:

Increase in expenditure on Australian owned R & D by the eligible company	×	Net increase in expenditure on Australian owned R & D by the group	×	Adjusted increase in expenditure on R & D by the group
Total increase in expenditure on Australian owned R & D by the eligible companies in the group		Net increase in expenditure on Australian owned R & D by the group			+	Net increase in expenditure on foreign owned R & D by the group

where:

adjusted increase in expenditure on R & D by the group
means the amount worked out under section 73RE .

increase in expenditure on Australian owned R & D by the eligible company
means the amount worked out under subsection 73RA(1) .

net increase in expenditure on Australian owned R & D by the group
means the amount worked out under section 73RC .

net increase in expenditure on foreign owned R & D by the group
means the amount worked out under section 73RD .

total increase in expenditure on Australian owned R & D by the eligible companies in the group
means the amount worked out under subsection 73RA(2) .

Note:

The amount worked out using the formula will not be more than zero if at least one of the following is zero:

(a) the increase in expenditure on Australian owned R & D by the eligible company;

(b) the net increase in expenditure on Australian owned R & D by the group;

(c) the adjusted increase in expenditure on R & D by the group.

Solitary company may be able to deduct under subsection (1)

73QA(4)
To avoid doubt, an eligible company for which there are no other group members may be able to deduct an amount under subsection (1).

Note:

For an eligible company for which there are no other group members, the values of the following components of the formula in subsection (3) will all be the same:

(a) the increase in expenditure on Australian owned R & D by the eligible company;

(b) the total increase in expenditure on Australian owned R & D by the eligible companies in the group;

(c) the net increase in expenditure on Australian owned R & D by the group.

S 73QA and 73QB substituted for s 73Q by No 164 of 2007 , s 3 and Sch 11 item 34, effective 25 September 2007. For application provision, see note under s 73B(1AAA) . For transitional provisions regarding reduced notional expenditure on foreign owned R & D, see note under s 73P(1) .