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

Schedule 3   Other amendments relating to new R&D incentive

Part 2   Prepayments of expenditure

Income Tax Assessment Act 1936

5   Subsection 82KZL(1) (paragraph (d) of the definition of excluded expenditure )

Repeal the paragraph, substitute:

(d) to the extent that it is of a capital nature and cannot be deducted under:

(i) section 355-205 (R&D expenditure); or

(ii) section 355-480 (earlier year associate R&D expenditure);

of the Income Tax Assessment Act 1997; or

(da) to the extent that it is of a private or domestic nature; or