Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020 (92 of 2020)

Schedule 4 Enhancing the R&D Tax Incentive

Income Tax Assessment Act 1997

7 After subsection 355-100(1)

Insert:

R&D premium

(1A) If item 2 or 3 of the table in subsection (1) applies to the *R&D entity, the amount of the *tax offset for the income year is increased by the sum of the amounts (if any) worked out for each item of the following table for that entity:

Tiered offset rates
Item	Work out the part of the total amount mentioned in subsection 355-100(1) that:	Multiply that part by this percentage:
1	exceeds nil but does not exceed 2% of the *R&D entity's total expenses for the income year worked out under section 355-115	8.5%
2	exceeds 2% of the *R&D entity's total expenses for the income year worked out under section 355-115	16.5%

Tiered offset rates

Item

Work out the part of the total amount mentioned in subsection 355-100(1) that:

Multiply that part by this percentage:

exceeds nil but does not exceed 2% of the *R&D entity's total expenses for the income year worked out under section 355-115

8.5%

exceeds 2% of the *R&D entity's total expenses for the income year worked out under section 355-115

16.5%

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