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PART B Amount of expenditure on the following items

Last updated 23 June 2008

Item 1 Cooperative research centre contributions

At I item 1 enter the amount of any contributions to cooperative research centres (CRCs) that the company has made during the year of income.

Item 2 Trading stock expenditure

At J item 2 enter the total of any trading stock expenditures that were included as base amounts in items 1 to 5 of Part A Calculation of research and development deduction. Trading stock expenditures are expenditures incurred in connection with acquiring trading stock.

Item 3 Royalties paid to non-residents for the use of core technology

At K item 3 enter the total of any royalties paid for core technology used in R&D activities.

Item 4 Total expenditure on plant and depreciating assets

At N item 4 enter the total of any expenditure incurred in this income year on purchasing any items of plant or depreciating assets used in R&D activities.

Item 5 Total expenditure on core technology

At O item 5 enter the total of any expenditure incurred in this financial year on core technology that was used in R&D activities.

Item 6 Building expenditure and other adjustments required to calculate the company's aggregate R&D amount

At X item 6 enter other amounts not included in Part A that are needed to calculate the company's aggregate R&D amount. These amounts form part of the aggregate research and development amount even though they are not deductible under 73B of the ITAA 1936.

These include:

  • the total amount of any capital expenditure on buildings used for the purpose of carrying on R&D activities, deductible under Division 43 of ITAA 1997, and
  • for companies that are lodging a return regarding income and deductions for a period before or after they joined a consolidated group the additional aggregate research and development amount calculated in accordance with section 716-850 of ITAA 1997
Attention

These items are not eligible for a deduction under the R&D tax concession but form part of the aggregate R&D amount (subsection 73B(1) of ITAA 1936).

End of attention
Attention

Only complete this part if the company chooses the R&D tax offset.

End of attention

At X item 6 also record any positive or negative adjustments that may need to be made where a company has a transitional accounting period and the amounts reported in Part A relate to a period that is less than or greater than 12 months. At X you can record the necessary adjustments to those amounts for the purpose of calculating the aggregate R&D amount. The aggregate R&D amount is calculated using the 12-month period that is the tax offset year (ATOID 2003/989).

QC18884