Show download pdf controls
  • Item 2 Salary expenditure



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

    End of attention

    At item 2 enter the amount of salary expenditure for employees who are actually carrying out an eligible R&D activity (as defined in subsection 73B(1) of ITAA 1936, including:

    • salaries, wages, allowances, bonuses, overtime payments, penalty rate payments, annual leave, sick leave and long service leave, and
    • on-costs such as contributions to a superannuation fund, premiums for workers' compensation insurance and payroll tax.
    Further Information

    You may need to apportion the expenditure incurred between R&D and non-R&D activities. For more information, see Taxation Ruling IT 2552 - Research and development (R&D) - costing of expenditure, paragraphs 4-12.

    End of further information

    This item does not include:

    • salary expenditure incurred in the construction of R&D plant, depreciating assets, structural improvements or buildings
    • salary expenditure of R&D support staff not directly connected with the research activity - include those at item 3 Other R&D expenditure, and
    • salary expenditure claimed that is to be adjusted in accordance with the prepayment provisions (sections 82KZL to 82KZMF of ITAA 1936).

    At E enter the total R&D salary expenditure incurred (the base amount).

    At F enter any amount of the total R&D salary expenditure claimable at 100%.

    At G enter any amount of the total R&D salary expenditure claimable at 125%.


    The total of the amounts at F and G must equal the base amount otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.

    End of attention

    More information

    For more information, see:

    Last modified: 24 Jun 2008QC 18884