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  • Item 14 Residual feedstock expenditure



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Feedstock expenditure items

    To find out how much to include at the feedstock expenditure items 6 and 14, first determine the following amounts.

    • Feedstock expenditure - expenditure incurred in acquiring or producing materials or goods processed or transformed by the company in R&D activities. It includes expenditure on energy directly input into processing or transforming these materials or goods.
    • Feedstock input - feedstock expenditure for materials or goods that were processed or transformed in R&D activities during the year of income.
    • Feedstock output - the sales proceeds or value of any products obtained during the year of income from processing or transforming the materials or goods that were feedstock expenditure. It is either the amount received or receivable for the products sold in arm's length transactions or, if not sold, or not sold in an arm's length transaction, the amount that would have been received if they had been sold in an arm's length transaction.

    Residual feedstock expenditure is the lesser amount of the company's feedstock input and feedstock output for R&D activities in the year of income.

    If feedstock inputs are:

    • greater than feedstock outputs, record the outputs amount at W Residual feedstock expenditure.
    • less than feedstock outputs, record the inputs amount at W Residual feedstock expenditure.

    This is the residual feedstock expenditure, as defined in subsection 73B(1) of ITAA 1936.


    The residual feedstock expenditure will not be deductible at the concessional rate. It is claimable at 100%. Subsection 73B(14B) of ITAA 1936 allows a deduction for residual feedstock expenditure.

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    At W and X enter the amount of residual feedstock expenditure.


    The amount at W must equal the amount at X otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.

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    Last modified: 24 Jun 2008QC 18884