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

Schedule 3A   Quarterly credits

Part 2   Power to make regulations to modify operation of Acts

3   First objective - quarterly credits in anticipation of refundable tax offset

(1) The first objective is that an R&D entity will be credited by the Commissioner quarterly amounts for an income year if particular requirements are satisfied.

Note 1: These requirements include the R&D entity satisfying eligibility criteria and other matters (for example, see Part 3).

Note 2: Receiving quarterly credits may result in the R&D entity being paid an amount out of the Consolidated Revenue Fund (see section 16 of the Taxation Administration Act 1953).

(2) Three of the eligibility criteria for a quarterly credit for an income year are:

(a) that it is reasonable to expect that the R&D entity will be entitled to a refundable R&D tax offset for the income year relating to R&D activities conducted during the income year; and

(b) if Innovation Australia makes one or more findings about the R&D activities or purported R&D activities - that those findings are positive; and

(c) that the quarter begins on or after 1 January 2014.

Note: There may be additional eligibility criteria (for example, see subparagraph 5(1)(a)(ii)).