When is a feedstock adjustment triggered?
A feedstock adjustment will not be triggered, unless you have claimed the R&D tax incentive for one or more of the following:
- expenditure on acquiring or producing feedstock inputs (including the decline in value of depreciating assets)
- expenditure on energy inputs directly into the processing or transformation of the feedstock inputs.
The feedstock adjustment is triggered in the year in which you do one of the following:
- sell, or otherwise supply to someone else, the feedstock output, or a marketable product derived from it
- apply that output or product to your own use.
The feedstock adjustment also applies where an affiliate or an entity connected with you supplies or uses the marketable product as if you had done so.
The feedstock adjustment can be triggered during the income year in which you claimed the R&D incentive, or a future income year.