is capped at the entity’s franking account balance; and

is only available for losses for years for which the entity’s turnover was less than $5 billion.

the current year is:

the 2020-21 income year; or

the 2021-22 income year;

the entity is a *corporate tax entity throughout the current year;

any or all of the following income years were *loss years:

the 2019-20 income year;

the 2020-21 income year;

if the current year is the 2021-22 income year—the 2021-22 income year;

the entity had an *income tax liability for any or all of the following income years:

the 2018-19 income year;

the 2019-20 income year;

if the current year is the 2021-22 income year and the 2021-22 income year was a loss year—the 2020-21 income year;

any of the following requirements are satisfied for the current year and each of the 5 income years before the current year:

the entity has lodged its *income tax return for the year;

the entity was not required to lodge an income tax return for the year;

the Commissioner has made an assessment of the entity’s income tax for the year;

the entity makes a *loss carry back choice for the current year in accordance with Subdivision 160-B.

the sum of the *loss carry back tax offset components for:

the 2018-19 income year; and

the 2019-20 income year; and

if the current year is the 2021-22 income year—the 2020-21 income year;

the entity’s *franking account balance at the end of the current year.

if the entity does not, in its *loss carry back choice for the current year, *carry back any *tax losses to the income year—nil; or

otherwise—so much of the entity’s *income tax liability for the income year as does not exceed:

if, in its loss carry back choice for the current year, the entity carries back only one tax loss to the income year—the amount worked out at step 3 of the following method statement in relation to the tax loss; or

if, in its loss carry back choice for the current year, the entity carries back tax losses for 2 or 3 *loss years to the income year—the sum of the amounts worked out at step 3 of the following method statement in relation to each of those tax losses.

a tax loss of $900,000 for that year and a franking account balance of $280,000; and

for the 2018-19 income year—an income tax liability of $120,000 and net exempt income of $5,000; and

for the 2019-20 income year—an income tax liability of $210,000.

an offset component for the 2018-19 income year of $120,000, calculated by starting with the $405,000 carried back, reducing that at step 2 by $5,000, and multiplying the result by 30%;

an offset component for the 2019-20 income year of $148,500, calculated by starting with the $495,000 carried back and multiplying the result by 30%.

if the entity *carries back an amount to the 2018-19 income year—more than half of the 2018-19 income year; and

if the entity carries back an amount to the 2019-20 income year—more than half of the 2019-20 income year; and

if the *current year is the 2021-22 income year and the entity carries back an amount to the 2020-21 income year—more than half of the 2020-21 income year.

if the current year is the 2021-22 income year:

how much of the entity’s *tax loss (if any) for the 2021-22 income year is to be *carried back to the 2020-21 income year; and

how much of the entity’s tax loss (if any) for the 2021-22 income year is to be carried back to the 2019-20 income year; and

how much of the entity’s tax loss (if any) for the 2021-22 income year is to be carried back to the 2018-19 income year;

in any case:

how much of the entity’s tax loss (if any) for the 2020-21 income year is to be carried back to the 2019-20 income year; and

how much of the entity’s tax loss (if any) for the 2020-21 income year is to be carried back to the 2018-19 income year;

in any case—how much of the entity’s tax loss (if any) for the 2019-20 income year is to be carried back to the 2018-19 income year.

the day the entity lodges its *income tax return for the *current year; or

such later day as the Commissioner allows.

was a *small business entity for the income year; or

would have been a small business entity for the income year if:

each reference in Subdivision 328-C (about what is a small business entity) to $10 million were instead a reference to $5 billion; and

the reference in paragraph 328-110(5)(b) to a small business entity were instead a reference to an entity covered by this section.

the entity cannot *carry back an amount of a *tax loss to the 2018-19 income year unless the entity was a *corporate tax entity throughout:

the 2018-19 income year (disregarding any period when the entity was not in existence); and

the 2019-20 income year; and

the entity cannot carry back an amount of a tax loss to the 2019-20 income year unless the entity was a corporate tax entity throughout the 2019-20 income year (disregarding any period when the entity was not in existence).

the entity cannot *carry back an amount of a *tax loss to the 2018-19 income year unless the entity was a *corporate tax entity throughout:

the 2018-19 income year (disregarding any period when the entity was not in existence); and

the 2019-20 income year; and

the 2020-21 income year; and

the entity cannot carry back an amount of a tax loss to the 2019-20 income year unless the entity was a corporate tax entity throughout:

the 2019-20 income year (disregarding any period when the entity was not in existence); and

the 2020-21 income year; and

the entity cannot carry back an amount of a tax loss to the 2020-21 income year unless the entity was a corporate tax entity throughout the 2020-21 income year (disregarding any period when the entity was not in existence).

was transferred to or from the entity under Division 170 or Subdivision 707-A (about certain company groups); or

exceeds the amount that would be the entity’s tax loss for the year if section 36-55 (about excess franking offsets) were disregarded.

there is a *scheme for a disposition of *membership interests, or an *interest in membership interests, in:

the corporate tax entity; or

an entity that has a direct or indirect interest in the corporate tax entity; and

the scheme is entered into or carried out during the period:

starting at the start of the gain year; and

ending at the end of the *current year; and

the disposition results in a change in who controls, or is able to control, (whether directly, or indirectly through one or more interposed entities) the voting power in the corporate tax entity; and

another entity receives, in connection with the scheme, a *financial benefit calculated by reference to one or more *loss carry back tax offsets to which it was reasonable, at the time the scheme was entered into or carried out, to expect the corporate tax entity would be entitled; and

having regard to the relevant circumstances of the scheme, it would be concluded that a person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling the corporate tax entity to get a loss carry back tax offset.

the extent to which the *corporate tax entity continued to conduct the same activities after the scheme as it did before the scheme;

if the corporate tax entity continued to use the same assets after the scheme as it did before the scheme—the extent to which those assets were assets for which equivalents were not readily available at the time of the scheme;

(c) the matters referred to in subsection 177D(2) of the Income Tax Assessment Act 1936 (applying paragraph 177D(2)(d) as if the reference in that paragraph to Part IVA of that Act were instead a reference to this section).

applies to a *non-share equity interest in the same way as it applies to a *membership interest; and

applies to an *equity holder in the same way as it applies to a *member.

a loss carry back tax offset being allowable to the taxpayer where the whole or a part of that loss carry back tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or

in a case where paragraph (baa) applies—the amount of the whole of the loss carry back tax offset or of the part of the loss carry back tax offset, as the case may be, referred to in that paragraph; and

a loss carry back tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where:

the allowance of the loss carry back tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and

the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or

the allowance of a loss carry back tax offset to a taxpayer; or

the loss carry back tax offset would not have been allowable; or

the whole or a part of a loss carry back tax offset not being allowable to the taxpayer;

in the case of a tax benefit that is referable to a loss carry back tax offset, or a part of a loss carry back tax offset, being allowable to the taxpayer—determine that the whole or a part of the loss carry back tax offset, or the part of the loss carry back tax offset, as the case may be, is not to be allowable to the taxpayer; or

if, in the opinion of the Commissioner:

an amount would have been allowed, or would be allowable, to the relevant taxpayer as a loss carry back tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a loss carry back tax offset to the relevant taxpayer; and

it is fair and reasonable that the amount, or a part of the amount, should be allowable as a loss carry back tax offset to the relevant taxpayer;

(c) not prevent the company from *carrying back its tax loss for the purpose of working out the amount of the company’s *loss carry back tax offset for the 2020-21 or 2021-22 income year;section 195-37 does

has a *tax loss for an income year; and

is a *PDF at the end of the income year;

Division 160 (Corporate loss carry back tax offset for 2020-21 or 2021-22 for businesses with turnover under $5 billion);

paragraph 205-70(4)(b);

paragraph 205-70(5)(b);

subsection 219-15(2) (table items 1, 2, 3, 4 and 9);

subsection 219-30(2) (table items 2, 3 and 4);

subsection 219-50(2);

subsection 219-50(3);

subsection 219-50(4);

paragraph 219-55(1)(a);

subsection 219-75(1);

subsection 219-75(2) (step 2 of the method statement);

paragraph 219-75(3)(a);

subsection 295-490(3);

subsection 392-95(1);

subsection 961-5(3);

subsection 961-55(3);

(p) subsection 995-1(1) (definition of shareholders’ share).

(db) Income Tax Assessment Act 1997 (the corporate loss carry back tax offset for 2020-21 or 2021-22 for businesses with turnover under $5 billion); orDivision 160 of the

the entity is an entity covered by subsection (1A) for the income year in which the time occurs; or

the entity is not a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for the income year; and

the entity would be such a small business entity for the income year if:

each reference in Subdivision 328-C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

(ia) the person is a small business entity, or is a person covered by subsection (1AA), (an eligible business entity); or

the person is not a small business entity; and

the person would be a small business entity if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to a person covered by this subsection.

(ia) the person is a small business entity, or is a person covered by subsection (1AA), (an eligible business entity); or

the person is not a small business entity; and

the person would be a small business entity if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to a person covered by this subsection.

the employer is not a small business entity for the year of income; and

the employer would be a small business entity for the year of income if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an employer covered by this subsection.

the employer is not a small business entity for the year of income; and

the employer would be a small business entity for the year of income if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an employer covered by this subsection.

the taxpayer is not a small business entity for the year of income; and

the taxpayer would be a small business entity for the year of income if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to a taxpayer covered by this subsection.

the taxpayer is not a small business entity for the expenditure year; and

the taxpayer would be a small business entity for the expenditure year if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to a taxpayer covered by this subsection.

is not a small business entity for the year of income; and

would be a small business entity for the year of income if:

each reference in Subdivision 328-C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity (within the meaning of that Act) covered by this definition.

the entity is not a *small business entity for the income year; and

the entity would be a small business entity for the income year if:

each reference in Subdivision 328-C (about what is a small business entity) to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) to a small business entity were instead a reference to an entity covered by this subsection.

the entity is not a *small business entity for the income year; and

the entity would be a small business entity for the income year if:

each reference in Subdivision 328-C (about what is a small business entity) to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) to a small business entity were instead a reference to an entity covered by this subsection.

(d) for the 2009-10 income year or a later income year—you are one of the following kinds of entity (an eligible business entity):

(i) a *small business entity (other than because of subsection 328-110(4) of the Income Tax Assessment Act 1997);

an entity covered by subsection (1A) of this section.

(a) the entity is not a *small business entity (other than because of subsection 328-110(4) of the Income Tax Assessment Act 1997) for the income year; and

the entity would be such a small business entity for the income year if:

each reference in Subdivision 328-C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

the amount worked out in accordance with those subsections as if that amount were $150 million; and

the product of the excess and the R&D entity’s *corporate tax rate for the income year.

the *R&D entity’s total expenses for the income year worked out in accordance with:

the *accounting principles; or

if accounting principles do not apply in relation to the R&D entity—commercially accepted principles relating to accounting;

any amount the R&D entity can deduct for the income year as mentioned in subsection 355-100(1), to the extent the amount is not covered by paragraph (a) for the income year.

disregard an amount to which paragraph (2)(a) otherwise applies if paragraph (2)(b) has previously applied in relation to the amount; and

disregard an amount to which paragraph (2)(b) otherwise applies if paragraph (2)(a) has previously applied in relation to the amount.

the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and

the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be.

a refundable R&D tax offset; or

a non-refundable R&D tax offset; or

a part of a refundable R&D tax offset; or

a part of a non-refundable R&D tax offset;

an amount would have been allowed, or would be allowable, to the relevant taxpayer as a refundable R&D tax offset, or a non-refundable R&D tax offset, in relation to a year of income if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a refundable R&D tax offset, or a non-refundable R&D tax offset, as the case may be, to the relevant taxpayer in relation to that year of income; and

it is fair and reasonable that the amount, or a part of the amount, should be allowable as a refundable R&D tax offset, or a non-refundable R&D tax offset, as the case may be, to the relevant taxpayer;

subsection 355-315(2);

subsection 355-475(1);

subsection 355-525(2).

the R&D entity receives a recoupment from government of expenditure on R&D activities for which it has obtained tax offsets under this Division; or

the R&D entity can deduct under this Division expenditure on goods, materials or energy used during R&D activities to produce marketable products or products applied to the R&D entity’s own use; or

a balancing adjustment event happens for an asset held by the R&D entity (or an R&D partnership in which the R&D entity is a partner) for which tax offsets have been obtained under this Division and for which an amount is otherwise included in the R&D entity’s (or R&D partnership’s) assessable income.

(a) the R&D entity has an amount (a clawback amount) under section 355-440, 355-445, 355-446, 355-447, 355-448 or 355-449 for the present year; and

(b) the R&D entity has received, or is entitled to receive, a *tax offset under offset year) in relation to that clawback amount.section 355-100 for one or more income years (each an

the entity, or another entity mentioned in subsection (5), receives or becomes entitled to receive a *recoupment from either of the following (otherwise than under the *CRC program):

an *Australian government agency;

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

the recoupment is received, or the entitlement to receive the recoupment arises, during the present 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 subsection (1) that is deducted under this Division; and

for each asset (if any) for which expenditure referred to in subsection (1) 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 *R&D entity;

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

(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

(b) it obtains under offset year) for deductions under this Division:section 355-100 *tax offsets for one or more income years (each an

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) as 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;

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

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

this Division; and

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

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

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

(e) an amount (the section 40-285 amount) is included in the R&D entity’s assessable income for the present year under subsection 355-315(3) for the asset and the balancing adjustment event.

the asset’s *cost; and

the asset’s *adjustable value, worked out under Division 40 as if that Division applied with the changes described in section 355-310.

a *balancing adjustment event happens in the present year for an asset *held by the R&D entity and for which:

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

(b) 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

(c) an amount (the section 40-285 amount) is included in the R&D entity’s assessable income for the asset under section 40-285 (after applying subsection 40-292(2)) for the present year.

the partner is a partner in an *R&D partnership; and

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

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

this Division; and

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

the partner is entitled under section 355-100 to *tax offsets for one or more income years for deductions under section 355-520 for the asset; and

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

(f) an amount (the section 40-285 amount) would, as mentioned in subsection 355-525(3), be included in the R&D partnership’s assessable income for the present year for the asset and the balancing adjustment event.

the asset’s *cost; and

the asset’s *adjustable value, worked out under Division 40 as if that Division applied with the changes described in section 355-310.

(a) the partner is a partner in an *R&D partnership; and

a *balancing adjustment event happens in the present 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

one or more partners (including the partner) in the R&D partnership are entitled under section 355-100 to *tax offsets for one or more income years for deductions under section 355-520 for the asset; and

(d) an amount (the section 40-285 amount) is included in the R&D partnership’s assessable income for the asset under section 40-285 (after applying subsection 40-293(2)) for the present year.

the starting offset were the *tax offset the R&D entity would have received under section 355-100 for the offset year if the total amount mentioned in subsection 355-100(1) were:

decreased by the sum of the portions of any such other clawback amounts that are attributable to the offset year; and

increased by the sum of the portions of any such other catch up amounts that are attributable to the offset year; and

(b) the reference to the “total amount” in the definition of adjusted offset were a reference to that amount as so adjusted.

a balancing adjustment event happens for an asset held by the R&D entity (or an R&D partnership in which the R&D entity is a partner); and

tax offsets have been obtained under this Division for deductions for the asset; and

the R&D entity (or the R&D partnership) can otherwise deduct an amount for the asset and the balancing adjustment event.

(a) the R&D entity has an amount (a catch up amount) under section 355-465, 355-466, 355-467 or 355-468 for an asset for the present year; and

(b) the R&D entity has received, or is entitled to receive, a *tax offset under offset year) in relation to the asset.section 355-100 for one or more income years (each an

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

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

this Division; and

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

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

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

the R&D entity can deduct, for the present year, an amount under subsection 355-315(2) for the asset and the balancing adjustment event.

a *balancing adjustment event happens in the present year for an asset *held by the R&D entity for which:

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

(b) 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

(c) the R&D entity can deduct an amount (the section 40-285 amount) for the asset under section 40-285 (after applying subsection 40-292(2)) for the present year.

the partner is a partner in an *R&D partnership; and

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

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

this Division; and

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

the partner is entitled under section 355-100 to *tax offsets for one or more income years for deductions under section 355-520 for the asset; and

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

the partner can deduct an amount under subsection 355-525(2) for the present year for the asset and the balancing adjustment event.

the partner is a partner in an *R&D partnership; and

a *balancing adjustment event happens in the present 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

one or more partners (including the partner) in the R&D partnership are entitled under section 355-100 to *tax offsets for one or more income years for deductions under section 355-520 for the asset; and

(d) the R&D partnership can deduct an amount (the section 40-285 amount) for the asset under section 40-285 (after applying subsection 40-293(2)) for the present year.

the starting offset were the *tax offset the R&D entity would have received under section 355-100 for the offset year if the total amount mentioned in subsection 355-100(1) were:

increased by the sum of the portions of any such other catch up amounts that are attributable to the offset year; and

decreased by the sum of the portions of any such other clawback amounts that are attributable to the offset year; and

(b) the reference to the “total amount” in the definition of adjusted offset were a reference to that amount as so adjusted.

an Accelerating Commercialisation Grant under the program administered by the Commonwealth known as the Entrepreneurs’ Programme;

an amount required to be included in the company’s assessable income under subsection 355-450(1).

if the section 40-285 amount is an amount included in the R&D entity’s assessable income—a clawback amount under section 355-447 of the new Act for the income year; or

if the section 40-285 amount is a deduction—a catch up amount under section 355-466 of the new Act for the income 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.

if the section 40-285 amount is an amount included in the R&D partnership’s assessable income—a clawback amount under section 355-449 of the new Act for the income year; or

if the section 40-285 amount is a deduction—a catch up amount under section 355-468 of the new Act for the income 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.

if an amount is taken to be included in the R&D entity’s assessable income for the event year as mentioned in subsection (4) of this section—a clawback amount under section 355-446 of the new Act for the income year equal to the amount mentioned in subsection (4B) of this section; or

if the R&D entity is taken to be able to deduct an amount as mentioned in subsection (3) of this section—a catch up amount under section 355-465 of the new Act for the income year equal to the amount of that deduction.

if an amount is taken to be included in the R&D entity’s assessable income for the event year as mentioned in subsection (4) of this section—a clawback amount under section 355-448 of the new Act for the income year equal to the amount mentioned in subsection (4B) of this section; or

if the partner is taken to be able to deduct an amount as mentioned in subsection (3) of this section—a catch up amount under section 355-467 of the new Act for the income year equal to the amount of that deduction.

the entity’s name;

(b) the entity’s ABN or, if the first information the entity gave the Commissioner indicating the entity’s entitlement to the tax offset does not include the entity’s ABN but does include the entity’s ACN (within the meaning of the Corporations Act 2001), the entity’s ACN;

if, according to the first information the entity gave the Commissioner indicating the entity’s entitlement to the tax offset, the total described in paragraph (4)(a) exceeds the total described in paragraph (4)(b)—the excess.

the total of what the entity can deduct for the income year as described in subsection (1) of this section;

(b) the total of the amounts the entity has under Income Tax Assessment Act 1997 for the income year.section 355-445 of the

the entity gives the Commissioner a notice in writing that the information mentioned in paragraph (3)(c) contains an error; and

the notice contains information that corrects the error.

as a result of reviewing under section 30D a reviewable decision that was made in accordance with the determination because of section 31D, the Board is satisfied that the determination is incorrect; or

the determination is inconsistent with:

a decision of a court; or

a decision of the Administrative Appeals Tribunal on review of an internal review decision relating to a reviewable decision that was made in accordance with the determination because of section 31D; or

this Act, the regulations or the decision-making principles.

relates to the interested person; and

has not been finalised;

the entity has previously applied for registration, or for variation of the entity’s registration, for corresponding activities for an earlier income year; and

a decision on the previous application either has not been made or is subject to review under Division 5 of Part III of the Act.

you start to hold the asset; and

you start to use the asset, or have it installed ready for use, for a taxable purpose.

it is not reasonable to conclude that you will use the asset principally in Australia for the principal purpose of carrying on a business; or

it is reasonable to conclude that the asset will never be located in Australia.

(a) the asset is allocated to a low-value pool, or expenditure on the asset is allocated to a software development pool (see Subdivision 40-E of the Income Tax Assessment Act 1997); or

(b) you or another taxpayer has deducted or can deduct amounts for the asset under Subdivision 40-F of the Income Tax Assessment Act 1997 (about primary production depreciating assets).

you are a small business entity for the income year; or

you would be a small business entity for the income year if:

(i) each reference in Subdivision 328-C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $5 billion; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this section.

you start to hold the asset at or after the 2020 budget time; and

you start to use the asset, or have it installed ready for use, for a taxable purpose in the current year; and

you are covered by section 40-150 for the asset; and

you are covered by section 40-155 (about businesses with turnover under $5 billion) for the current year; and

no balancing adjustment event happens to the asset in the current year.

if the asset’s start time occurs in the current year—the asset’s cost as at the end of the current year, disregarding any amount included in the asset’s cost after 30 June 2022; or

if the asset’s start time occurred in an earlier year—the sum of its opening adjustable value for the current year and any amount included in the second element of its cost for the current year, disregarding any amount included in the asset’s cost after 30 June 2022.

section 40-155 would not cover you for the income year if the reference in that section to $5 billion were instead a reference to $50 million; and

any of the exclusions in this section applies in relation to the asset.

entered into a contract under which you would hold the asset; or

started to construct the asset; or

started to hold the asset in some other way.

on a day before 6 October 2020, you:

enter into a contract under which you hold an asset on that day, or will hold the asset on a later day; or

start to construct an asset; or

start to hold an asset in some other way; and

(b) on a day on or after 6 October 2020 (the conduct day), you engage in conduct that results in you:

entering into a contract under which you hold the post-6 October 2020 asset on the conduct day, or will hold that asset on an even later day; or

starting to construct the post-6 October 2020 asset; or

starting to hold the post-6 October 2020 asset in some other way; and

the post-6 October 2020 asset is the asset mentioned in paragraph (a), or an identical or substantially similar asset; and

you engage in that conduct for the purpose, or for purposes that include the purpose, of satisfying paragraph 40-160(1)(a) for the post-6 October 2020 asset.

entering into a contract under which the partnership would hold an asset;

starting to construct an asset;

acquiring an option to enter into such a contract.

another entity held the asset when it was first used, or first installed ready for use, other than:

as trading stock; or

merely for the purposes of reasonable testing or trialling; or

(b) you started holding the asset under Income Tax Assessment Act 1997 (about splitting a depreciating asset) or section 40-125 of that Act (about merging depreciating assets); orsection 40-115 of the

you already satisfied paragraph 40-160(1)(a) of this Act for the asset as a member of a consolidated group or a MEC group of which you are no longer a member.

the asset is a licence (including a sub-licence) relating to an intangible asset; and

the exclusion in that subsection applies in relation to the intangible asset.

either:

you start to use the asset, or have it installed ready for use, for a taxable purpose in the current year; or

you started to use the asset, or have it installed ready for use, for a taxable purpose in an earlier income year; and

you are covered by section 40-150 for the asset; and

you are covered by section 40-155 (about businesses with turnover under $5 billion) for the current year; and

the eligible second element worked out under section 40-175 for the asset for the year is greater than nil; and

no balancing adjustment event happens to the asset in the current year.

(a) if the asset’s decline in value for the year would, apart from Income Tax Assessment Act 1997—the amount worked out under subsection (3); orsection 40-145, be worked out under section 40-82 of the

if the asset’s decline in value for the year would, apart from section 40-145, be worked out under Subdivision 40-BA of this Act—the amount worked out under subsection (4); or

otherwise—the amount worked out under subsection (5).

(a) the amount that would be the asset’s decline in value for the year under Income Tax Assessment Act 1997, assuming the reference in subparagraph 40-82(3A)(b)(ii) of that Act to 31 December 2020 were instead a reference to the 2020 budget time; andsection 40-82 of the

the eligible second element worked out under section 40-175 of this Act for the asset for the year.

the amount that would be worked out under paragraph 40-130(2)(a) or (4)(a) (whichever is applicable) for the year, assuming the references in paragraphs 40-130(2)(a) and (4)(a) to 30 June 2021 were instead references to the 2020 budget time; and

the eligible second element worked out under section 40-175 for the asset for the year; and

the amount that would be worked out under paragraph 40-130(2)(b) or (4)(b) (whichever is applicable) for the year, assuming the references in paragraphs 40-130(2)(b) and (4)(b) to “the amount worked out under paragraph (a)” were instead references to “the amounts worked out under paragraphs 40-170(4)(a) and (b)”.

(a) the amount that would be the asset’s decline in value for the year under Income Tax Assessment Act 1997, disregarding any amounts included in the eligible second element worked out under section 40-175 of this Act for the asset for the year; andDivision 40 of the

the eligible second element worked out under section 40-175 for the asset for the year.

the income year;

the period beginning at the 2020 budget time and ending on 30 June 2022.

start to hold the asset; and

start to use it, or have it installed ready for use, for a taxable purpose.

at or after the 2020 budget time; and

on or before 30 June 2022.

the asset is a licence (including a sub-licence) relating to an intangible asset; and

the exception in that subsection applies in relation to the intangible asset.

any of the following has applied before the joining entity became a *subsidiary member for the purposes of working out the asset’s decline in value under Division 40:

section 40-82;

(ii) Subdivision 40-BA of the Income Tax (Transitional Provisions) Act 1997;

Subdivision 40-BB of that Act; and