whose outcome cannot be known or determined in advance on the basis of current knowledge, information or experience, but can only be determined by applying a systematic progression of work that:

is based on principles of established science; and

proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and

that are conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services).

market research, market testing or market development, or sales promotion (including consumer surveys);

prospecting, exploring or drilling for minerals or *petroleum for the purposes of one or more of the following:

discovering deposits;

determining more precisely the location of deposits;

determining the size or quality of deposits;

management studies or efficiency surveys;

research in social sciences, arts or humanities;

commercial, legal and administrative aspects of patenting, licensing or other activities;

activities associated with complying with statutory requirements or standards, including one or more of the following:

maintaining national standards;

calibrating secondary standards;

routine testing and analysis of materials, components, products, processes, soils, atmospheres and other things;

any activity related to the reproduction of a commercial product or process:

by a physical examination of an existing system; or

from plans, blueprints, detailed specifications or publically available information;

developing, modifying or customising computer software for the dominant purpose of use by any of the following entities for their internal administration (including the internal administration of their business functions):

(i) the entity (the developer) for which the software is developed, modified or customised;

an entity *connected with the developer;

an *affiliate of the developer, or an entity of which the developer is an affiliate.

is an activity referred to in subsection 355-25(2); or

produces goods or services; or

is directly related to producing goods or services;

a body corporate incorporated under an *Australian law;

a body corporate incorporated under a *foreign law that is an Australian resident.

is a resident of a foreign country for the purposes of an agreement in force between that country and Australia that:

(i) is a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936); and

(ii) includes a definition of permanent establishment; and

carries on business in Australia through a permanent establishment (within the meaning of that definition) of the body corporate in Australia;

section 355-205 (R&D expenditure);

section 355-305 (decline in value of R&D assets);

section 355-315 (balancing adjustment for R&D assets);

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

section 355-520 (decline in value of R&D partnership assets);

section 355-525 (balancing adjustment for R&D partnership assets);

section 355-580 (CRC contributions).

working out whether the R&D entity is entitled under section 355-100 to a *tax offset; and

a provision (of this Act or any other Act) that refers to an entitlement of the R&D entity under section 355-100 to a tax offset; and

a provision (of this Act or any other Act) that:

prevents some or all of the notional amount from being deducted; or

changes the income year for which some or all of the notional amount can be deducted; and

a provision (of this Act or any other Act) that includes an amount in assessable income wholly or partly because of the notional amount; and

a provision (of this Act or any other Act) that excludes expenditure from:

the *cost base or *reduced cost base of a *CGT asset; or

an element of that cost base or reduced cost base.

(a) apart from Subdivision H (prepaid expenditure) of Income Tax Assessment Act 1936, an *R&D entity can deduct an amount under section 355-205 or 355-480 for an income year (the present year) or an earlier income year; andDivision 3 of Part III of the

that Subdivision applies to the calculation of that amount; and

the entity can deduct an amount, as a result of that application of that Subdivision, for the present year;

is incurred on one or more *R&D activities:

(i) for which the R&D entity is registered under Industry Research and Development Act 1986 for an income year; andsection 27A of the

that are activities to which section 355-210 (conditions for R&D activities) applies; and

if the expenditure is incurred to the R&D entity’s *associate—is paid to that associate during the present year.

the R&D activity is conducted for the *R&D entity solely within Australia or an external Territory;

if the R&D entity is a body corporate carrying on business through a permanent establishment (as described in subsection 355-35(2))—the R&D activity is conducted:

for the body corporate; but

not for the purposes of that permanent establishment;

the R&D activity is conducted for one or more foreign residents who are each:

incorporated under a *foreign law; and

a resident of a foreign country for the purposes of an agreement of a kind described in subsection 355-35(2);

the R&D activity is:

conducted for the R&D entity solely outside Australia and the external Territories; and

(ii) covered by a finding in force under paragraph 28C(1)(a) of the Industry Research and Development Act 1986;

the R&D activity consists of several parts, with:

some parts being conducted for the R&D entity solely within Australia or an external Territory; and

(ii) the other parts being conducted for the R&D entity outside Australia and the external Territories while covered by a finding in force under paragraph 28C(1)(a) of the Industry Research and Development Act 1986.

the R&D activity is conducted solely within Australia or an external Territory;

if the R&D activity is a *supporting R&D activity, each corresponding *core R&D activity must be:

an activity conducted, or to be conducted, solely within Australia or an external Territory; and

(ii) an activity for which the *R&D entity is or has been registered under Industry Research and Development Act 1986, or could be registered for an income year if that core R&D activity were conducted during the income year;section 27A of the

there is written evidence that the R&D activity is conducted for the body corporate but not for the purposes of that permanent establishment.

the R&D activity is conducted solely within Australia or an external Territory;

if the R&D activity is a *supporting R&D activity, each corresponding *core R&D activity must be:

an activity conducted, or to be conducted, solely within Australia or an external Territory; and

(ii) an activity for which the *R&D entity is or has been registered under Industry Research and Development Act 1986, or could be registered for an income year if that core R&D activity were conducted during the income year;section 27A of the

when the R&D activity is conducted:

each foreign resident is *connected with the R&D entity; or

for each foreign resident—either the foreign resident is an *affiliate of the R&D entity or the R&D entity is an affiliate of the foreign resident;

the R&D activity is conducted:

in accordance with a written agreement binding on only the R&D entity and each foreign resident; and

either directly by the R&D entity, or indirectly by another entity under an agreement binding on the R&D entity;

the R&D activity is not conducted in connection with an agreement covered by subsection (2).

(a) the agreement is binding on the R&D entity (the first entity) and an R&D entity that:

is *connected with the first entity; or

has the first entity as an *affiliate, or is an affiliate of the first entity;

the R&D activity is to be conducted under the agreement by the first entity or by an entity:

who is not bound by the agreement; and

who is to conduct the R&D activity directly or indirectly under another agreement to which the first entity is, or will become, bound.

for conducting the R&D activity as a subcontractor under a subcontract with an affiliated R&D entity; or

if the R&D entity is a subcontractor to an affiliated R&D entity—for further subcontracting the conducting of the R&D activity.

expenditure incurred to acquire or construct:

a building or a part of a building; or

an extension, alteration or improvement to a building;

expenditure included in the *cost of a tangible *depreciating asset for the purposes of Division 40 (as that Division applies as described in section 355-310 or otherwise);

(c) expenditure incurred for interest (within the meaning of Income Tax Assessment Act 1936) payable to an entity.Division 11A of Part III of the

a purpose of the R&D activities was or is:

to obtain new knowledge based on that technology; or

to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or

the R&D activities were or are an extension, continuation, development or completion of the activities that produced that technology.

(a) an *R&D entity is registered under Industry Research and Development Act 1986 for an income year (the present year) for one or more *R&D activities that are activities to which section 355-210 (conditions for R&D activities) applies; andsection 27A of the

while a tangible *depreciating asset is *held by the R&D entity during the present year, the asset is used for the purpose of conducting one or more of those R&D activities; and

the R&D entity could deduct an amount under section 40-25 for the asset for the present year if Division 40 applied with the changes described in section 355-310; and

the R&D entity cannot deduct an amount for the asset for:

an earlier income year under Subdivision 328-D (capital allowances for small business entities); or

an earlier income year under Division 40 (as that Division applies apart from this Division), in a case where section 40-440 (low-value pools) applied;

paragraph 355-225(1)(b) (excluded expenditure); and

paragraph 355-305(1)(c); and

section 355-315 (balancing adjustments).

can deduct amounts under Division 43 (capital works); or

could deduct amounts under Division 43:

apart from expenditure being incurred, or the building works being started, before a particular day; or

had the R&D entity used the building works for a purpose relevant to those building works under section 43-140 (using an area in a deductible way).

subsection 40-25(7) (meaning of taxable purpose);

subsection 40-45(2) (assets to which Division 40 does not apply);

section 40-425 (low-value pools);

Subdivision 328-D (capital allowances for small business entities).

(a) a *balancing adjustment event happens in an income year (the event year) for an asset *held by the R&D entity; and

the R&D entity cannot deduct an amount under section 40-25, as that section applies apart from:

this Division; and

(ii) former Income Tax Assessment Act 1936;section 73BC of the

(c) the R&D entity is entitled under R&D deductions) under section 355-305 for the asset; andsection 355-100 to *tax offsets for one or more income years for deductions (the

(d) the entity is registered under Industry Research and Development Act 1986 for one or more *R&D activities for the event year; andsection 27A of the

if Division 40 applied with the changes described in section 355-310:

the entity could deduct for the event year an amount under subsection 40-285(2) for the asset and the balancing adjustment event; or

an amount would be included in the entity’s assessable income for the event year under subsection 40-285(1) for the asset and the balancing adjustment event.

an *R&D entity incurs expenditure to another entity on all or part of an *R&D activity; and

either:

when the R&D entity incurs the expenditure, the R&D entity and the other entity do not deal with each other at *arm’s length; or

the other entity is the R&D entity’s *associate; and

the expenditure exceeds the *market value of the relevant R&D activity or part (as appropriate);

when it incurs the expenditure, the R&D entity or its *associate had received, or could reasonably be expected to receive, consideration:

as a direct or indirect result of the expenditure being incurred; and

regardless of the results of the activities on which the expenditure is incurred; and

that consideration is equal to or greater than the expenditure.

when an *R&D entity incurs expenditure, the R&D entity or its *associate had received, or could reasonably be expected to receive, consideration:

as a direct or indirect result of the expenditure being incurred; and

regardless of the results of the activities on which the expenditure is incurred; and

that consideration is less than the expenditure;

anything that happened or existed before or at the time the expenditure is incurred; and

anything that is likely to happen or exist after that time.

the R&D entity is entitled under section 355-100 to a *tax offset because it can:

deduct under section 355-205 or 355-480 expenditure incurred on *R&D activities; or

(ii) deduct under R&D asset) used for the purpose of conducting one or more R&D activities; andsection 355-305 or 355-520 an amount for an asset (the

(b) the R&D entity receives or becomes entitled to receive one or more of the following amounts (the results amounts) in an income year (the results year):

an amount for the results of any of the R&D activities;

an amount from granting access to, or the right to use, any of those results;

an amount attributable to the R&D entity having incurred the expenditure, including an amount it is entitled to receive regardless of the results of the R&D activities;

an amount attributable to the R&D asset being used for the purpose mentioned in subparagraph (a)(ii), including an amount the R&D entity is entitled to receive regardless of the results of the R&D activities;

an amount from *disposing of a *CGT asset, or from granting a right to occupy or use a CGT asset, where the disposal or grant resulted in another person acquiring a right to access or use any of those results.

if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is a *depreciating asset—an amount equal to the extent (if any) that the results amount exceeds the asset’s *cost just before the disposal or grant;

if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is not a depreciating asset—an amount equal to the extent (if any) that the results amount exceeds the asset’s *cost base just before the disposal or grant;

otherwise—the results amount.

the R&D entity can deduct an amount under section 355-205 or 355-480 for an income year for one or more *R&D activities; and

(b) one or more other entities (the grouped entities) incurred expenditure during the income year, or an earlier income year, on one or more of those *R&D activities; and

when each grouped entity incurred the expenditure:

the grouped entity was *connected with the R&D entity; or

the grouped entity was an *affiliate of the R&D entity or the R&D entity was an affiliate of the grouped entity.

the grouped entity was *connected with the *R&D entity; or

the grouped entity was an *affiliate of the R&D entity or the R&D entity was an affiliate of the grouped entity.

apply the reduction amount to reduce the amount otherwise deductible under section 355-205 (but not below zero); and

then apply any remainder of the reduction amount to reduce the amount otherwise deductible under section 355-480 (but not below zero).

an *Australian government agency; or

(b) an STB (within the meaning of Income Tax Assessment Act 1936);Division 1AB of Part III of the

(a) the *recoupment is received, or the entitlement to receive the recoupment arises, during an income year (the trigger year); and

either:

the recoupment is of expenditure incurred on or in relation to certain activities; or

(ii) the recoupment requires expenditure (the project expenditure) to have been incurred, or to be incurred, on certain activities.

so much of the expenditure referred to in section 355-445 that is deducted under this Division; and

for each asset (if any) for which expenditure referred to in section 355-445 is included in the asset’s *cost—each amount (if any) equal to the asset’s decline in value that is deducted under this Division;

an entity *connected with the recipient;

an *affiliate of the recipient or an entity of which the recipient is an affiliate.

marketable products; or

products applied to the R&D entity’s own use.

(a) it incurs expenditure in one or more income years in acquiring or producing goods, or materials, (the feedstock inputs) transformed or processed during *R&D activities in producing one or more tangible products (the feedstock outputs); and

it obtains under section 355-100 *tax offsets for one or more income years for deductions under this Division:

for the expenditure; or

for expenditure it incurs on any energy input directly into the transformation or processing; or

for the decline in value of assets used in acquiring or producing the feedstock inputs; and

(c) during the present year, a feedstock output, or a transformed feedstock output, (the marketable product) is:

*supplied by the R&D entity to another entity; or

applied by the R&D entity to the R&D entity’s own use, other than use for the purpose of transforming that product for supply.

the *feedstock revenue for the feedstock output; and

so much of the total of the amounts deducted as described in paragraph (1)(b) that is reasonably attributable to the production of the feedstock output.

it becomes, or is transformed into, a feedstock input; or

that subsection already applies to the feedstock output because of the application of paragraph (1)(c) to:

an earlier time during the present year; or

an earlier income year.

*supplied by the *R&D entity to the other entity; or

first applied by the R&D entity to the R&D entity’s own use, other than use for the purpose of transforming that product for supply.

an entity *connected with the *R&D entity; or

an *affiliate of the R&D entity or an entity of which the R&D entity is an affiliate;

the expenditure was incurred on one or more *R&D activities:

(i) for which the R&D entity is registered under Industry Research and Development Act 1986 for an income year; andsection 27A of the

that are activities to which section 355-210 (conditions for R&D activities) applies; and

the expenditure is paid to that associate during the present year; and

subsection (2) applies to the expenditure.

the *R&D entity can deduct the expenditure, or is entitled to a *tax offset for the expenditure, under any other Division of this Act for an earlier income year; and

by the time of lodging its *income tax return for the most recent income year before the present year, the R&D entity had neither:

deducted the expenditure; nor

obtained a tax offset for the expenditure;

can be deducted under this section; but

can no longer be deducted under the other Division.

the proportion the partners agreed the partner should bear or be entitled to (as appropriate); or

if there is no such agreement—the proportion of the partner’s interest in the *net income or *partnership loss of the R&D partnership for the income year.

the partner incurred the partner’s proportion of that expenditure when the R&D partnership incurred that expenditure; and

neither the R&D partnership, nor any other partner of the R&D partnership, incurred expenditure during the income year on the R&D activities; and

such other changes were made to this Division as are appropriate having regard to that partner’s proportion of amounts attributable to the R&D partnership.

the partner being able to deduct the partner’s proportion of the partnership expenditure under section 355-205 (R&D expenditure) or 355-480 (earlier year associate R&D expenditure) for the R&D activities; and

the partner being affected by the integrity rules in Subdivisions 355-F, 355-G and 355-H.

the R&D activities were conducted by or for the partner in a corresponding way to the way the R&D activities were conducted by or for the R&D partnership; and

the partner had relationships with other entities in relation to the R&D activities that corresponded to the relationships the R&D partnership had with those other entities in relation to the R&D activities; and

a thing done by, or in relation to, the R&D partnership in relation to the R&D activities were a thing done by, or in relation to, the partner; and

the R&D activities were neither:

conducted by or for the R&D partnership; nor

conducted by or for any other partner of the R&D partnership; and

such other changes were made to this Division as are appropriate having regard to that partner’s proportion of amounts attributable to the R&D partnership.

(a) an *R&D entity is a partner of an *R&D partnership at some time during an income year (the present year); and

(b) the partner is registered under Industry Research and Development Act 1986 for the present year for one or more *R&D activities that are activities to which section 355-210 (conditions for R&D activities) applies; andsection 27A of the

while a tangible *depreciating asset is *held by the R&D partnership during the present year, the asset is used for the purpose of conducting one or more of those R&D activities; and

the R&D partnership could deduct an amount under section 40-25 for the asset for the present year if Division 40 applied with the changes described in section 355-310; and

the R&D partnership cannot deduct an amount for the asset for:

an earlier income year under Subdivision 328-D (capital allowances for small business entities); or

an earlier income year under Division 40 (as that Division applies apart from this Division), in a case where section 40-440 (low-value pools) applied;

(a) a *balancing adjustment event happens in an income year (the event year) for an asset *held by an *R&D partnership; and

the R&D partnership cannot deduct an amount under section 40-25, as that section applies apart from:

this Division; and

(ii) former Income Tax Assessment Act 1936;section 73BC of the

(c) the partner is entitled under R&D deductions) under section 355-520 for the asset; andsection 355-100 to *tax offsets for one or more income years for deductions (the

(d) the partner is registered under Industry Research and Development Act 1986 for one or more *R&D activities for the event year; andsection 27A of the

if Division 40 applied with the changes described in section 355-310 (as affected by subsection 355-520(2)):

the R&D partnership could deduct for the event year an amount under subsection 40-285(2) for the asset and the balancing adjustment event; or

an amount would be included in the R&D partnership’s assessable income for the event year under subsection 40-285(1) for the asset and the balancing adjustment event.

that amount; and

the following amount;

an *R&D entity is a partner of an *R&D partnership at some time during an income year; and

the partner’s *aggregated turnover for the income year does not include the R&D partnership’s *annual turnover for the income year;

(a) amounts (the results amounts) of a kind set out in subparagraphs 355-410(1)(b)(i) to (v) that the R&D partnership receives or becomes entitled to receive in an income year; and

the principle that any amount to be included in the partner’s assessable income for the income year for a results amount should be the partner’s proportion of the amount arising under subsection 355-410(2) for the results amount.

(a) an *R&D partnership incurs expenditure (the partnership expenditure) on *R&D activities; and

(b) an *R&D entity (the partner) is entitled under section 355-100 to a *tax offset because it can, under section 355-205 or 355-480, deduct some or all of that expenditure; and

the R&D partnership receives an amount as a *recoupment of any or all of the partnership expenditure;

to have incurred the partner’s proportion of the partnership expenditure when the R&D partnership incurred that expenditure; and

to have received the partner’s proportion of the recoupment when the R&D partnership received the recoupment.

(a) an *R&D entity (the partner) is entitled under section 355-100 to a *tax offset because it can, under section 355-520, deduct an amount for an income year for an asset; and

the applicable *R&D partnership receives an amount as a *recoupment of any or all of the R&D partnership’s expenditure included in the *cost of the asset for the purposes of the application of Division 40 as described in paragraph 355-520(1)(d);

to have incurred the partner’s proportion of that expenditure when the R&D partnership incurred that expenditure; and

to have received the partner’s proportion of the recoupment when the R&D partnership received the recoupment.

any expenditure the R&D entity is taken to have incurred because of this Subdivision;

any amount the R&D entity can deduct under this Subdivision;

any *recoupment the R&D entity is taken to have received because of this Subdivision;

the expenditure is in the form of monetary contributions under the *CRC program; and

(b) the contributions have been or will be spent under the CRC program on one or more *R&D activities for which the R&D entity is registered under Industry Research and Development Act 1986 for an income year.section 27A of the

a contribution an *R&D entity can deduct under subsection (1); nor

expenditure incurred under the *CRC program, to the extent that the expenditure is incurred out of:

a contribution an R&D entity can deduct under subsection (1); or

Commonwealth funding;

a contribution an *R&D entity can deduct under subsection (1); or

Commonwealth funding;

(a) a certificate given to the Commissioner under the Industry Research and Development Act 1986 sets out:

a finding under section 27B of that Act about an *R&D entity’s application for registration under section 27A of that Act for an income year; or

a finding under section 27J of that Act about an R&D entity’s registration under section 27A of that Act for an income year; or

a finding under section 28E of that Act about an R&D entity and one or more *R&D activities conducted or to be conducted during one or more income years; and

the finding was made within 4 years after the end of the income year or the last of the income years (as appropriate);

an activity is being conducted, or is yet to be conducted, in an income year; and

(b) an *R&D entity applies in the income year for a finding under Industry Research and Development Act 1986 about the activity; andsection 28A of the

Innovation Australia makes the finding and gives the Commissioner a certificate under that Act setting out the finding;

an activity is completed during an income year; and

(b) an *R&D entity applies in the income year for a finding under Industry Research and Development Act 1986 about the activity; andsection 28A of the

Innovation Australia makes the finding and gives the Commissioner a certificate under that Act setting out the finding;

(a) a certificate given to the Commissioner under the Industry Research and Development Act 1986 sets out:

a finding under section 27B of that Act about an *R&D entity’s application for registration under section 27A of that Act for an income year; or

a finding under section 27J of that Act about an R&D entity’s registration under section 27A of that Act for an income year; or

a finding under section 28A or 28C of that Act made on application by an R&D entity during an income year; or

a finding under section 28E of that Act about an R&D entity and one or more R&D activities conducted or to be conducted during one or more income years; and

the finding was made within 4 years after the end of the income year or the last of the income years (as appropriate);

(a) an internal review decision (the key decision) under subsection 30D(2) of the Industry Research and Development Act 1986 relates to an *R&D entity; or

(b) a decision (also the key decision) under the Administrative Appeals Tribunal Act 1975:

varies a decision covered by paragraph (a); or

sets aside a decision covered by paragraph (a), whether or not that key decision also includes a decision made in substitution for the decision covered by paragraph (a); or

(c) a decision (also the key decision) of a court is about:

(i) a decision under Industry Research and Development Act 1986 relating to an R&D entity; orPart III of the

a decision covered by paragraph (b);

cannot be taken into account by any entity in working out a deduction under any other Division of this Act for any income year; and

cannot be taken into account by any entity in working out a tax offset under any other Division of this Act for any income year.

cannot be taken into account by any entity in working out a deduction under any other Division of this Act (other than section 40-292 or 40-293) for any income year; and

cannot be taken into account by any entity in working out a tax offset under any other Division of this Act for any income year;

(a) to provide integrity for the working out of tax offsets under Income Tax Assessment Act 1997; andDivision 355 (about R&D) of the

to increase certainty through findings about matters relevant to the working out of those tax offsets; and

to improve access for small and medium R&D entities to quality research services by maintaining a register of research service providers.

the Board registering entities seeking these tax offsets; and

the Board conducting compliance checks on those entities.

one or more specified activities as core R&D activities conducted during the income year;

one or more specified activities as supporting R&D activities conducted during the income year.

any findings already in force under subsection 27B(1) in relation to the application; and

any findings already in force under subsection 28A(1) (advance findings about the nature of activities) in relation to the R&D entity.

one or more activities as the corresponding core R&D activities; and

if any of those activities specified as a core R&D activity is not registered under paragraph (1)(a) for the R&D entity for the income year—each income year for which that core R&D activity:

was registered under paragraph (1)(a) for the R&D entity; or

is proposed to be registered under paragraph (1)(a) for the R&D entity.

that all or part of an activity mentioned in the application was a core R&D activity conducted during the income year;

that all or part of an activity mentioned in the application was not an activity of a kind covered by paragraph (a);

that all or part of an activity mentioned in the application was a supporting R&D activity conducted:

during the income year; and

in relation to one or more specified core R&D activities for which the entity has been or could be registered under section 27A for an income year;

that all or part of an activity mentioned in the application was not an activity of a kind covered by paragraph (c).

a description of the finding; and

the Board’s reasons for the finding; and

the activity affected by the finding; and

the matters (if any) specified in regulations made for the purposes of this paragraph.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section; and

made within:

10 months after the end of the income year; or

a further period allowed by the Board in accordance with the decision-making principles.

30 days after the request was made; or

a further period allowed by the Board in accordance with the decision-making principles.

requested by the Commissioner; or

the R&D entity has applied for one or more findings under subsection 27J(1) about the registration.

make one or more findings under subsection 27J(1) about the registration; or

if justified in accordance with the decision-making principles—refuse to make a finding under subsection 27J(1) about the registration.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section.

30 days after the request was made; or

a further period allowed by the Board in accordance with the decision-making principles.

that all or part of a registered activity was a core R&D activity conducted during the registration year;

that all or part of a registered activity was not an activity of a kind covered by paragraph (a);

that all or part of a registered activity was a supporting R&D activity conducted during the registration year and in relation to:

one or more specified registered core R&D activities; or

one or more specified core R&D activities for which the entity has been registered in an earlier income year; or

one or more specified core R&D activities yet to be conducted for which the entity could be registered in the registration year if those activities were conducted during the registration year; or

several specified core R&D activities, each covered by subparagraph (i), (ii) or (iii);

that all or part of a registered activity was not an activity of a kind covered by paragraph (c).

a description of the finding; and

the Board’s reasons for the finding; and

the registered activity affected by the finding; and

the effect of the finding on the entity’s registration; and

the matters (if any) specified in regulations made for the purposes of this paragraph.

under subsection 27B(1) in relation to the application for the registration; or

under subsection 27J(1) in relation to the registration;

a finding under subsection 28A(1) (advance findings about the nature of activities) comes into force for an R&D entity about an activity conducted during an income year; and

the R&D entity is later registered under section 27A for the activity for the income year;

the entity applies for the variation; and

the variation is consistent with the Board’s findings (if any) in force under this Part in relation to the R&D entity; and

making the variation is justified in accordance with the decision-making principles.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section.

find that all or part of the activity is a core R&D activity;

find that all or part of the activity is a supporting R&D activity in relation to one or more specified core R&D activities for which the entity has been or could be registered under section 27A for an income year;

make a finding to the effect that all or part of the activity is neither:

a core R&D activity; nor

a supporting R&D activity of a kind covered by paragraph (b);

if justified in accordance with the decision-making principles—refuse to make a finding about all or part of the activity.

is being conducted, or has been completed, during the income year in which the application is made; or

is yet to be conducted, but that it is reasonable to expect that the activity will be conducted in any or all of the following income years:

the income year in which the application is made;

either of the next 2 income years.

is specified in regulations made for the purposes of this subsection; and

is acting with the R&D entity’s written consent.

an entity could, under subsection (1), make an application on behalf of more than one R&D entity for the same finding for the same activity; and

(b) the entity applies (the joint application) under subsection 28G(2) for the finding on behalf of those R&D entities;

(a) find that all or part of the activity is an activity (the overseas activity) that meets the conditions in section 28D;

find that all or part of the activity is not an activity that meets the conditions in section 28D;

if justified in accordance with the decision-making principles—refuse to make a finding about all or part of the activity.

that are conducted or to be conducted solely within Australia or an external Territory; and

that:

are registered under section 27A for the R&D entity for an income year; or

are reasonably likely to be conducted and be registered under section 27A for the R&D entity for an income year.

the Australian core activities cannot be completed without the overseas activity being conducted; and

the conditions (if any) specified in regulations made for the purposes of this subsection are met.

conducting it requires access to a facility, expertise or equipment not available in Australia or the external Territories; or

conducting it in Australia or the external Territories would contravene a law relating to quarantine; or

conducting it requires access to a population (of living things) not available in Australia or the external Territories; or

conducting it requires access to a geographical or geological feature not available in Australia or the external Territories; or

it meets a condition (if any) specified in regulations made for the purposes of this subsection.

the overseas activity; and

each other activity (if any) conducted wholly or partly outside Australia and the external Territories that has a significant scientific link to the Australian core activities;

the Australian core activities; and

activities conducted solely within Australia and the external Territories that are supporting R&D activities in relation to the Australian core activities.

find that the technology is core technology for the R&D activities; or

find that the technology is not core technology for the R&D activities; or

if justified in accordance with the decision-making principles—refuse to make a finding about the technology and the R&D activities.

a purpose of the R&D activities was or is:

to obtain new knowledge based on that technology; or

to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or

the R&D activities were or are an extension, continuation, development or completion of the activities that produced that technology.

may make a finding under subsection (1) on its own initiative; and

must make a decision under subsection (1) if the R&D entity applies for a finding under this section.

a description of the finding; and

the Board’s reasons for the finding; and

a description of the activity affected by the finding; and

for a finding under subsection 28E(1)—a description of the technology affected by the finding; and

the matters (if any) specified in regulations made for the purposes of this paragraph.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this subsection.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this subsection.

for an application taken to be made by an R&D entity because of section 28B—the entity that acted on behalf of the R&D entity in relation to the application; or

otherwise—the applicant;

30 days after the request was made; or

a further period allowed by the Board in accordance with the decision-making principles.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section.

the 30 days referred to in subsection (2); or

a further period allowed by the Board in accordance with the decision-making principles.

needs to make inquiries in order to determine whether the applicant meets the criteria for registration referred to in subsection 29A(2); and

requires the applicant to pay the Board a specified amount towards the cost of those inquiries.

$1,000; and

the amount (if any) specified in regulations made for the purposes of this subsection;

asking the provider if it wishes to continue to be registered under section 29A; and

attaching an approved form to be completed by the provider and returned to the Board if the provider wishes to continue to be registered.

30 days after the notice under subsection (1) was given; or

a further period allowed by the Board in accordance with the decision-making principles.

the provider applies for the variation; and

the Board is satisfied that the provider would still meet the criteria for registration referred to in subsection 29A(2) were the application to be successful.

in the approved form; and

accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section.

that the provider has ceased to meet the criteria for registration referred to in subsection 29A(2); or

that the provider has breached a condition, referred to in subsection 29A(3), of the registration.

registrations in force under this Division; and

registrations that have been revoked under this Division during the current financial year or the previous financial year.

the making of the decision;

the reasons for the decision;

the entity’s right to have the decision reviewed under this Division.

28 days after the entity to which the decision relates is notified of the decision under this Part; or

such further period as the Board allows in accordance with the decision-making principles.

confirming the reviewable decision; or

varying the reviewable decision; or

setting aside the reviewable decision and substituting a new decision.

after the end of the period referred to in that subsection, the Board makes a decision under subsection (2) about the applicable reviewable decision; and

an application has yet to be made under section 30E to the Administrative Appeals Tribunal for review of the deemed decision.

the making of an internal review decision; and

the reasons for that decision.

(a) an internal review decision as varied by the Tribunal under Administrative Appeals Tribunal Act 1975; orsection 43 of the

a decision made by the Tribunal under that section in substitution for an internal review decision.

paragraph 29(1)(d) of that Act applied to the internal review decision; and

the prescribed time for the purposes of that paragraph were the end of the period of 28 days starting on the day on which the internal review decision is taken to be made.

hearings of proceedings for review of an internal review decision are to be held in private; and

during the proceedings, the Tribunal may, by order:

give directions as to the persons who may be present during all or part of a hearing of the proceedings; and

give directions of a kind mentioned in paragraph 35(2)(aa), (b) or (c) of that Act.

the R&D entity can apply to be registered for the activity for the income year, and that registration will be effective in respect of the first part of the income year; and

the head company of the group can apply to be registered for the activity for the income year in respect of the second part of the income year.

a finding is made under this Part on application by an R&D entity that is a subsidiary member of a consolidated group or MEC group; and

the head company of the group is also an R&D entity;

(a) is in force for an R&D entity immediately before the time (the joining time) it becomes a subsidiary member of a consolidated group or MEC group, of which the head company is an R&D entity; and

is for an activity to be conducted wholly or partly after the joining time;

is for an R&D entity that is the head company of a consolidated group or MEC group; and

(b) is in force immediately before the time (the leaving time) another R&D entity ceases to be a subsidiary member of the group; and

is for an activity to be conducted by or for the other R&D entity wholly or partly after the leaving time; and

is not a deemed finding.

(a) a corresponding finding (the continuing finding) in the same terms is taken to come into force at the leaving time for the other R&D entity and the activity;

everything that happened under this Part before the leaving time in relation to the group finding is taken to have happened in relation to the continuing finding;

the group finding ceases to be in force at the leaving time.

be in writing in a form approved by the Board; and

include the information required by the form; and

include any other material (including documents) required by the form.

whether to allow a thing to be given under this Part within a further period than that specified in this Part;

whether refusing to make a finding sought under this Part is justified;

whether making a variation sought under section 27M is justified.

a finding already in force under that subsection in relation to that registration; or

a finding already in force under subsection 27B(1) in relation to the application for that registration; or

a finding already in force under subsection 28A(1) (advance findings about the nature of activities) in relation to the R&D entity.

subsection (2) had not been enacted; and

each reference in this Part to an R&D entity were, by express provision, confined to an R&D entity that:

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.

subsection (1) had not been enacted; and

this Part, by express provision, confined applications, registrations, findings and decisions under this Part to be in relation to activities, or parts of activities, conducted or to be conducted:

solely in a Territory; or

solely outside of Australia; or

solely in a Territory and outside of Australia; or

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

must set out:

(i) the total number of applications during the year for registration under Income Tax Assessment Act 1997; andsection 27A for a tax offset under Division 355 of the

the total amounts of the offsets involved; and

an analysis of the operation of the R&D tax offset scheme for the year; and

in the course of performing a duty or function, or exercising a power, under this Act; or

for the purposes of enabling another person to perform duties or functions, or exercise powers, under this Act; or

(c) for the purposes of enabling a person to perform duties or functions, or exercise powers, under the Census and Statistics Act 1905 or the Income Tax Assessment Act 1997.

fees for making applications to the Board under Part III; and

a method for indexing the fees.

subsection (3) had not been enacted; and

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

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.

subsection (2) had not been enacted; and

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:

solely in a Territory; or

solely outside of Australia; or

solely in a Territory and outside of Australia; or

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

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

section 355-205 (R&D expenditure); or

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

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

references in this Subdivision to incurring the expenditure were references to paying the expenditure; and

references in this Subdivision to the expenditure year were references to the payment year.

apart from this section, a deduction under:

section 8-1; or

section 355-205 (R&D expenditure) or 355-480 (earlier year associate R&D expenditure);

apart from that section, the taxpayer could deduct the expenditure for the expenditure year under:

section 8-1; or

section 355-205 (R&D expenditure) or 355-480 (earlier year associate R&D expenditure);

apart from that section, the taxpayer could deduct the expenditure for the expenditure year under:

section 8-1; or

section 355-205 (R&D expenditure) or 355-480 (earlier year associate R&D expenditure);

only one of the following events has happened:

you have deducted one or more amounts under this Division for an asset;

you have been entitled under section 355-100 (about R&D) to one or more *tax offsets because you can deduct one or more amounts under section 355-305 for an asset; but

later, the other event happens for the asset;

the events in paragraph (6)(a) could both arise for the same period for an asset; and

neither event has already arisen for the asset;

a *taxable purpose;

the purpose of producing *exempt income or *non-assessable non-exempt income;

the purpose of conducting *R&D activities, assuming that this is reasonably likely.

assume the asset will be subject to wear and tear at a rate that is reasonable for the Commissioner to assume; and

assume the asset will be maintained in reasonably good order and condition; and

have regard to the period within which the asset is likely to be scrapped, sold for no more than scrap value or abandoned.

a *taxable purpose;

the purpose of producing *exempt income or *non-assessable non-exempt income;

the purpose of conducting *R&D activities, assuming that this is reasonably likely.

have regard to the wear and tear you reasonably expect from your expected circumstances of use; and

assume that the asset will be maintained in reasonably good order and condition.

scrapped; or

sold for no more than scrap value or abandoned;

(a) a *balancing adjustment event happens in an income year (the event year) for an asset you *held and for which:

(i) you can deduct, for an income year, an amount under Income Tax Assessment Act 1936; orsection 40-25, as that section applies apart from Division 355 and former section 73BC of the

you could have deducted, for an income year, an amount as described in subparagraph (i) if you had used the asset; and

(b) you are entitled under R&D deductions) under section 355-305 for the asset.section 355-100 to *tax offsets for one or more income years for deductions (the

if your *aggregated turnover for the event year is less than $20 million—1/2 of the amount worked out under subsection (5) of this section; and

otherwise—1/3 of the amount worked out under subsection (5) of this section.

if the section 40-285 amount is a deduction—the amount of the deduction; or

if the section 40-285 amount is an amount included in your assessable income—so much of the section 40-285 amount as does not exceed the total decline in value.

(a) a *balancing adjustment event happens in an income year (the event year) for a *depreciating asset *held by the R&D partnership and for which:

(i) the R&D partnership can deduct, for an income year, an amount under Income Tax Assessment Act 1936; orsection 40-25, as that section applies apart from Division 355 and former section 73BC of the

the R&D partnership could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and

(b) one or more partners of the R&D partnership are entitled under R&D deductions) under section 355-520 for the asset.section 355-100 to *tax offsets for one or more income years for deductions (the

that the *R&D partnership can deduct for the asset under section 40-285 (after applying subsection (2) of this section) for the event year; or

that is included in the R&D partnership’s assessable income for the asset under section 40-285 (after applying subsection (2) of this section) for the event year;

if the section 40-285 amount is a deduction—the amount of the deduction; or

if the section 40-285 amount is an amount included in the *R&D partnership’s assessable income—so much of the section 40-285 amount as does not exceed the total decline in value.

(a) you are registered under Industry Research and Development Act 1986 for the R&D activities for an income year; orsection 27A (registering R&D activities) of the

if you are an *R&D partnership—an *R&D entity, who was a partner of the R&D partnership at some time while the R&D activities were conducted, is registered under that section for the R&D activities for an income year.

expenditure on property for which a deduction under section 355-305 or 355-520 is allowable for the property, or would be allowable if the property were for use for conducting *R&D activities; or

Subdivision 355-G;

subsection 392-35(3).

disregard subsection 355-715(2) (tax offset for assets used for R&D activities).

you are an *R&D entity and you could deduct an amount under section 40-25 for the *depreciating asset if the following assumptions were made:

(i) despite paragraph 40-30(1)(c) and subsection 40-30(2), all intangible assets were excluded from the definition of depreciating asset in section 40-30;

subsection 40-45(2) did not, except in the case of buildings, prevent Division 40 from applying to capital works to which Division 43 applies, or to which Division 43 would apply but for expenditure being incurred, or capital works being started, before a particular day;

you satisfied any relevant requirement for deductibility under Division 40; or

you are an *R&D entity; and

a *balancing adjustment event occurs for a *depreciating asset you *held; and

when you held the asset, you could deduct an amount under section 40-25 for the asset if the assumptions set out in paragraph (1A)(a) were made; and

at some time when you held the asset:

(i) you used it other than for a taxable purpose or for the purpose of conducting *R&D activities for which you were registered under Industry Research and Development Act 1986; orsection 27A of the

(ii) you had it installed ready for use other than for a taxable purpose.

the *depreciating asset covered by subsection (1) or (1B) is a *pre-CGT asset; or

(b) if the depreciating asset is covered by subsection 104-235(1B)—the reductions that would have been required under on the assumption that using the asset for a *taxable purpose included using it for the purpose of conducting *R&D activities for which you were registered under section 27A of the Industry Research and Development Act 1986.section 40-25

Subdivision 40-D; or

section 355-315 or 355-525 (about R&D).

a payment of income tax in relation to either or both of the following:

an *FHSA component;

an *RSA component;

a *tax offset that is subject to the refundable tax offset rules because of section 67-30 (about R&D).

the refund of the amount, or the application of the credit, represents in whole or in part:

a return to the entity of an amount paid or applied to satisfy the entity’s liability to pay income tax; or

the amount remaining after applying a *tax offset that is subject to the refundable tax offset rules because of section 67-30 (about R&D) against the entity’s basic income tax liability.

a company becomes a *subsidiary member of a *consolidated group; and

apart from this section, things happening in relation to the company before it became a subsidiary member would, because of section 701-5 (the entry history rule), be taken into account as things happening in relation to the *head company for working out the head company’s *aggregated turnover for the purposes of section 355-100 (tax offsets for R&D);

a company ceases to be a *subsidiary member of a *consolidated group; and

while the company was a subsidiary member, things happened in relation to an entity which, if section 701-1 (the single entity rule) were disregarded:

would be *connected with the company; or

would be an *affiliate of the company; or

would have the company as an affiliate; and

those things would, if section 701-1 were disregarded, have been taken into account in working out the company’s *aggregated turnover for the purposes of section 355-100 (tax offsets for R&D); and

the things are not also things that, because of section 701-40 (the exit history rule), are taken into account as things happening in relation to an eligible asset etc. (within the meaning of that section) of the company in working out for the entity core purposes the company’s aggregated turnover for the purposes of section 355-100;

an excess remains after the entity’s tax offsets for the income year are applied against its basic income tax liability for the income year; and

that excess is wholly or partly refundable.

(a) the entity is an R&D entity that is entitled under Income Tax Assessment Act 1997 to a tax offset for the income year; andsection 355-100 of the

that tax offset is a refundable tax offset.

(a) the Income Tax Assessment Act 1936;

(b) the Income Tax Assessment Act 1997;

(c) the Industry Research and Development Act 1986;

(d) the Taxation Administration Act 1953.

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

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

that the quarter begins on or after 1 January 2014.

the R&D entity receives quarterly credits for an income year; or

the R&D entity does not receive those quarterly credits, and becomes entitled, after the end of the income year, to the refundable R&D tax offset for the income year.

eligibility criteria for quarterly credits, including:

matters relevant to working out when paragraph 3(2)(b) is satisfied; and

additional criteria to those mentioned in subitem 3(2);

how applications for quarterly credits may be made, including that:

applications must be in an approved form; and

applications may be varied;

(c) that Innovation Australia may make findings (the IA findings) about the activities that relate to an application, or proposed application, for quarterly credits;

how IA findings may be made, including that IA findings may be made on application in an approved form;

fees relating to applications for quarterly credits or applications for IA findings, and a method for indexing the fees;

how applications for quarterly credits or IA findings are considered (and approved or rejected);

that applicants for quarterly credits or IA findings are notified of specified decisions or matters;

that further information may be requested from applicants for quarterly credits or IA findings;

deadlines for doing things in relation to quarterly credits or the making of IA findings;

how amounts of quarterly credits are worked out;

(k) that each quarterly credit is a credit the R&D entity is entitled to under a taxation law for the purposes of Taxation Administration Act 1953;Part IIB of the

that an R&D entity’s total credits for an income year become a debt due to the Commonwealth at a specified time after the end of the income year;

that each of the following may be varied or revoked:

an approval of an application for quarterly credits;

an IA finding;

that internal review may be sought of specified decisions relating to quarterly credits or the making of IA findings;

that review by the Administrative Appeals Tribunal may be sought of internal review decisions relating to quarterly credits or the making of IA findings;

integrity measures;

that specified findings, decisions or requests made by Innovation Australia relating to quarterly credits are binding on the Commissioner (or vice versa);

that Innovation Australia is authorised to disclose to the Commissioner (or vice versa) information relating to quarterly credits or the making of IA findings;

matters of a transitional, application or saving nature;

matters of a consequential, ancillary or incidental nature.

that it is reasonable to expect that the R&D entity will be in a net refund assessment position for the income year;

(b) that the R&D entity has been assessed as being entitled under Income Tax Assessment Act 1997 to a tax offset (whether a refundable tax offset or not) for an earlier income year.section 355-100 of the

if an R&D entity’s total credits for an income year exceeds the amount of the R&D entity’s entitlement to a refundable R&D tax offset for the income year—that the R&D entity may be liable to pay a penalty on the excess;

if the approval of an R&D entity’s application for quarterly credits for an income year is revoked—that the R&D entity’s total credits for the income year become a debt due to the Commonwealth at a specified time.

(a) subsection 47(1) of the Industry Research and Development Act 1986; and

(b) sections 355-25, 355-155 and 355-265 in Schedule 1 to the Taxation Administration Act 1953.

empowering a person to make a decision of an administrative character; and

if appropriate, requiring the person to make that decision in accordance with decision-making principles.

subitem (2) had not been enacted; and

the relevant Act applied so that quarterly credits could only be worked out for an R&D entity that:

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.

subitem (1) had not been enacted; and

the relevant Act applied so that quarterly credits could only be worked out in respect of activities, or parts of activities, conducted or to be conducted:

solely in a Territory; or

solely outside of Australia; or

solely in a Territory and outside of Australia; or

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

so far as they affect assessments—to assessments for income years commencing on or after 1 July 2011; and

so far as they relate to income years but do not affect assessments—to income years commencing on or after 1 July 2011; and

otherwise—to acts done or omitted to be done, states of affairs existing, or periods ending on or after the commencement of the first income year commencing on or after 1 July 2011.

(a) Industry Research and Development Act 1986 (as inserted by Schedule 2);section 29E of the

(b) the repeal of paragraph 39H(b) of the Industry Research and Development Act 1986;

(c) Industry Research and Development Act 1986 (as amended by this Act).section 46 of the

any act done or omitted to be done; or

any state of affairs existing; or

any period ending;

making or amending an assessment (including under a provision that is itself repealed or amended);

exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

(a) an eligible company may object under Taxation Administration Act 1953 in an income year commencing on or after 1 July 2011 about a notice given under former section 73I of the Income Tax Assessment Act 1936 for an income year commencing before 1 July 2011;Part IVC of the

(b) an eligible company seeking registration under former Industry Research and Development Act 1986 for an income year commencing before 1 July 2011 may do so during an income year commencing on or after 1 July 2011;section 39J of the

(c) Innovation Australia may give a certificate under former Industry Research and Development Act 1986 in an income year commencing on or after 1 July 2011 about research and development activities registered for an income year commencing before 1 July 2011.section 39M of the

that exists after the repeal or amendment applies; and

that relates to:

an act done or omitted to be done; or

a state of affairs existing; or

a period ending;

(a) an amount may be included in an eligible company’s assessable income under former subsection 73BF(4) of the Income Tax Assessment Act 1936 for an income year commencing on or after 1 July 2011 if the company receives in that income year an amount for the results of research and development activities for which the company had deductions under former section 73BA of that Act in an income year commencing before 1 July 2011;

(b) an eligible company’s deduction under Income Tax Assessment Act 1936 for expenditure incurred during an income year commencing before 1 July 2011 is reduced because of section 73C of that Act if, in an income year commencing on or after 1 July 2011, the company receives a recoupment of that expenditure from the Commonwealth.section 73B of the

has not begun; or

has begun but not ended;

Subdivision 27-B;

subsection 40-90(3);

subsection 40-285(4);

paragraph 40-365(5)(b);

section 775-70;

section 775-75;

(g) Income Tax (Transitional Provisions) Act 1997.section 355-605 of the

(a) you have deducted one or more amounts under former Income Tax Assessment Act 1936 for an asset;section 73BA of the

you could have deducted one or more amounts under that former section for the asset if you had not chosen tax offsets under former section 73I of that Act.

(a) paragraph 40-65(6)(a) of the Income Tax Assessment Act 1997 included both events set out in subsection (1) of this section; and

subsections 40-65(6) and (7) of that Act deal with all 4 kinds of events in a corresponding way to the way that they deal with 2 kinds of events.

(a) a determination under Income Tax Assessment Act 1997 of the effective life of an asset;section 40-100 of the

a calculation under section 40-105 of that Act of the effective life of an asset;

(a) a balancing adjustment event happens in an income year (the event year) commencing on or after 1 July 2011 for an asset held by the R&D entity and:

(i) the R&D entity can deduct, for an income year, an amount under Income Tax Assessment Act 1997 (the new Act), as that section applies apart from Division 355 of that Act and former section 73BC of the Income Tax Assessment Act 1936 (the old Act); orsection 40-25 of the

the R&D entity could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and

either or both of the following subparagraphs apply:

(i) the R&D entity can deduct (the old law deductions) under former section 73BA or 73BH of the old Act an amount for one or more income years for the asset;

(ii) the R&D entity chooses tax offsets under former old law deductions) under those former sections for one or more income years for the asset.section 73I of the old Act instead of deductions (also the

the purpose of the carrying on, by or on behalf of the R&D entity, of the research and development activities (within the meaning of former section 73B of the old Act) to which the old law deductions relate; or

(b) if the R&D entity is entitled under new law deductions) under section 355-305 of that Act for the asset—the purpose of conducting the R&D activities to which the new law deductions relate.section 355-100 of the new Act to tax offsets for one or more income years for deductions (the

that the R&D entity can deduct for the asset under section 40-285 of the new Act (after applying subsection (2) of this section) for the event year; or

that is included in the R&D entity’s assessable income for the asset under section 40-285 of the new Act (after applying subsection (2) of this section) for the event year;

if the section 40-285 amount is a deduction—the amount of the deduction; or

if the section 40-285 amount is an amount included in the R&D entity’s assessable income—so much of the section 40-285 amount as does not exceed the total decline in value.

(a) Tax Laws Amendment (Research and Development) Act 2011);section 40-292 of the new Act (as amended by the

(b) Tax Laws Amendment (Research and Development) Act 2011);section 40-292 of the new Act (as that section applies because of Part 2 of Schedule 4 to the

(a) a balancing adjustment event happens in an income year (the event year) commencing on or after 1 July 2011 for an asset held by the R&D partnership and:

(i) the R&D partnership can deduct, for an income year, an amount under Income Tax Assessment Act 1997 (the new Act), as that section applies apart from Division 355 of that Act and former section 73BC of the Income Tax Assessment Act 1936 (the old Act); orsection 40-25 of the

the R&D partnership could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and

either or both of the following subparagraphs apply:

(i) one or more partners of the R&D partnership can deduct (the old law deductions) under former section 73BA or 73BH of the old Act amounts for one or more income years for the asset;

(ii) one or more partners of the R&D partnership choose tax offsets under former old law deductions) under those former sections for one or more income years for the asset.section 73I of the old Act instead of deductions (also the

the purpose of the carrying on, by or on behalf of the R&D partnership, of the research and development activities (within the meaning of former section 73B of the old Act) to which the old law deductions relate; or

(b) if one or more partners of the R&D partnership are entitled under new law deductions) under section 355-520 of that Act for the asset—the purpose of conducting the R&D activities to which the new law deductions relate.section 355-100 of the new Act to tax offsets for one or more income years for deductions (the

that the R&D partnership can deduct for the asset under section 40-285 of the new Act (after applying subsection (2) of this section) for the event year; or

that is included in the R&D partnership’s assessable income for the asset under section 40-285 of the new Act (after applying subsection (2) of this section) for the event year;

if the section 40-285 amount is a deduction—the amount of the deduction; or

if the section 40-285 amount is an amount included in the R&D partnership’s assessable income—so much of the section 40-285 amount as does not exceed the total decline in value.

(a) you can deduct an amount for the asset under former Income Tax Assessment Act 1936; orsection 73BA of the

you could so deduct an amount if you had not chosen a tax offset under former section 73I of that Act;

a balancing adjustment event happens in an income year commencing on or after 1 July 2011 for an asset held by the R&D entity; and

(b) at some time when the R&D entity held the asset, it used the asset for the purpose of the carrying on by or on its behalf of research and development activities (within the meaning of former Income Tax Assessment Act 1936).section 73B of the

(a) a reference in those sections to the purpose of conducting R&D activities for which you were registered under Industry Research and Development Act 1986;section 27A of the

a reference to the purpose described in paragraph (1)(b) of this section.

(a) sections 104-235 and 104-240 of the new Act (as amended by the Tax Laws Amendment (Research and Development) Act 2011);

(b) sections 104-235 and 104-240 of the new Act (as those sections apply because of Tax Laws Amendment (Research and Development) Act 2011);Part 2 of Schedule 4 to the

paragraph 43-35(a);

subparagraph 355-205(1)(a)(i);

subparagraph 355-215(b)(ii);

subparagraph 355-220(1)(b)(ii);

subparagraph 355-480(1)(a)(i);

paragraph 355-580(1)(b).

(a) a balancing adjustment event happens in an income year (the event year) commencing on or after 1 July 2011 for an asset held by the R&D entity; and

(b) the R&D entity cannot deduct an amount under Income Tax Assessment Act 1997 (the new Act), as that section applies apart from:section 40-25 of the

Division 355 of that Act; and

(ii) former Income Tax Assessment Act 1936 (the old Act);section 73BC of the

either or both of the following subparagraphs apply:

(i) the R&D entity can deduct (the old law deductions) under former section 73BA or 73BH of the old Act an amount for one or more income years for the asset;

(ii) the R&D entity chooses tax offsets under former old law deductions) under those former sections for one or more income years for the asset; andsection 73I of the old Act instead of deductions (also the

(d) the R&D entity is registered under Industry Research and Development Act 1986 for one or more R&D activities for the event year; andsection 27A of the

if Division 40 of the new Act applied as described in subsection (2) of this section:

the R&D entity could deduct for the event year an amount under subsection 40-285(2) of that Act for the asset and the balancing adjustment event; or

an amount would be included in the R&D entity’s assessable income for the event year under subsection 40-285(1) of that Act for the asset and the balancing adjustment event.

the asset; and

the event;

that amount; and

the following amount;

section 355-315 of the new Act;

(b) former Tax Laws Amendment (Research and Development) Act 2011);section 73BF of the old Act (as that section applies because of Part 2 of Schedule 4 to the

(a) a balancing adjustment event happens in an income year (the event year) commencing on or after 1 July 2011 for an asset held by an R&D partnership; and

the R&D partnership cannot deduct an amount under section 40-25, as that section applies apart from:

(i) Income Tax Assessment Act 1997 (the new Act); andDivision 355 of the

(ii) former Income Tax Assessment Act 1936 (the old Act);section 73BC of the

either or both of the following subparagraphs apply:

(i) the partner can deduct (the old law deductions) under former section 73BA or 73BH of the old Act an amount for one or more income years for the asset;

(ii) the partner chooses tax offsets under former old law deductions) under those former sections for one or more income years for the asset; andsection 73I of the old Act instead of deductions (also the

(d) the partner is registered under Industry Research and Development Act 1986 for one or more R&D activities for the event year; andsection 27A of the

if Division 40 of the new Act applied as described in subsection (2) of this section:

the R&D partnership could deduct for the event year an amount under subsection 40-285(2) of that Act for the asset and the balancing adjustment event; or

an amount would be included in the R&D partnership’s assessable income for the event year under subsection 40-285(1) of that Act for the asset and the balancing adjustment event.

the asset; and

the event;

the partner’s proportion of that amount; and

the following amount;

section 355-525 of the new Act;

(b) former Tax Laws Amendment (Research and Development) Act 2011);section 73BF of the old Act (as that section applies because of Part 2 of Schedule 4 to the

(a) apart from Subdivision H (prepaid expenditure) of Income Tax Assessment Act 1936, an eligible company can deduct an amount under former section 73B, 73BA, 73BH, 73QA, 73QB or 73Y of that Act for an income year commencing before 1 July 2011; andDivision 3 of Part III of the

that Subdivision applies to the calculation of that amount; and

apart from former paragraph 73B(10)(a) of that Act, the eligible company could deduct an amount, as a result of that application of that Subdivision, for an income year commencing on or after 1 July 2011.

you incurred core technology expenditure (within the meaning of that former section) in an income year commencing before 1 July 2011 in relation to the core technology under one or more contracts entered into at or after the time referred to in former subsection 73B(12) of that Act; and

(b) that expenditure (the undeducted expenditure) cannot be deducted for the last income year commencing before 1 July 2011.

a deduction under any other Division of that Act for any income year; and

a tax offset under any other Division of that Act for any income year.

subparagraph 27A(3)(b)(i);

subparagraph 27B(1)(c)(ii);

subparagraph 27J(1)(c)(ii);

paragraph 28A(1)(b);

paragraph 28D(2)(b).

required or permitted by this Act to be prescribed; or

necessary or convenient to be prescribed for carrying out or giving effect to this Act.