Research and development tax concession schedule instructions 2009

List of tables

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Table 1: Australian owned R&D incremental tax concession calculation - s73RA and 73RC steps
Table 2.1: Calculation of the reduced expenditure on Australian owned R&D for the Y0 year of income
Table 2.2: Calculation of the reduced expenditure on Australian owned R&D for the Y-1 year of income
Table 2.3: Calculation of the reduced expenditure on Australian owned R&D for the Y-2 year of income
Table 2.4: Calculation of the reduced expenditure on Australian owned R&D for the Y-3 year of income
Table 3: Calculation of increase in expenditure on Australian owned R&D
Table 4: Foreign owned R&D incremental tax concession calculation - s73RB and 73RD steps
Table 5: Calculation of the reduced expenditure on foreign owned R&D for Y0 year of income
Table 6: Total reduced notional expenditure on foreign owned R&D
Table 7: Calculation of adjusted increase in expenditure on R&D by the group [s73RE]
Table 8.1
Table 8.2
Table 8.3
Table 9: Calculation of adjustment amount for Y0 (AA0)
Table 10: Calculation of adjustment amount for Y-1 (AA-1)
Table 11: Calculation of running average for Y-1 (RA-1)
Table 12: Calculation of the adjustment balance
Table 13: Calculation of the adjustment balance
Table 14: Calculation of the adjusted increase in expenditure on R&D by the group
Table 15: Calculation of your company's share of the Australian owned part of the adjusted increase in expenditure on R&D by the group
Table 16
Table 17: Calculation of your company's share of the foreign owned part of the adjusted increase in expenditure on R&D by the group
Table 18

Table 1: Australian owned R&D incremental tax concession calculation - s73RA and 73RC steps
Row	Company	A Y0 Reduced expenditure on Australian owned R&D D, table 2.1	B Y-1 Reduced expenditure on Australian owned R&D D, table 2.2	C Y-2 Reduced expenditure on Australian owned R&D D, table 2.3	D Y-3 Reduced expenditure on Australian owned R&D D, table 2.4	E Total of columns B, C and D D, table 3	F Column E divided by 3 E, table 3	G Column A minus column F G, table 3	H Zero if column G is negative H, table 3
a	-	-	-	-	-	-	-	-	-
b	-	-	-	-	-	-	-	-	-
c	-	-	-	-	-	-	-	-	-
d	-	-	-	-	-	-	-	-	-
e	Group members - totals from additional table	-	-	-	-	-	-	-	-
f	Total of eligible company and group	-	-	-	-	-	-	-	-

Table 2.1: Calculation of the reduced expenditure on Australian owned R&D for the Y0 year of income
Row	Calculation element	Company 1	Company 2	Company 3
A	Incremental expenditure (step 2.1.1)	$	$	$
B	Adjustments to incremental expenditure (step 2.1.2) Receipt of grants - initial clawback amount attributable to incremental expenditure (step 2.1.3)	$	$	$
B		$	$	$
C	Reduced expenditure on Australian owned R&D (step 2.1.4)	$	$	$
D	(A + B − C) (Write 0 if negative.)	$	$	$

Transfer the amount at D for each company to:

table 1 or additional table (if used) of these instructions, for each relevant company for the year of income
item 1 in part D of the Research and development tax concession schedule 2009 or additional table (if used) for the company, for the year of income, and
F in table 3 of these instructions.

Note: If you are grouped with more than three companies, you will need to complete additional copies of tables 2.1 to 2.4.

Table 2.2: Calculation of the reduced expenditure on Australian owned R&D for the Y-1 year of income
Row	Calculation element	Company 1	Company 2	Company 3
A	Incremental expenditure (step 2.1.1)	$	$	$
B	Adjustments to incremental expenditure (step 2.1.2)	$	$	$
C	Receipt of grants - initial clawback amount attributable to incremental expenditure (step 2.1.3)	$	$	$
C		$	$	$
D	Reduced expenditure on Australian owned R&D (step 2.1.4) (A + B − C) (Write 0 if negative.)	$	$	$
D		$	$	$

Transfer the amount at D for each company to:

table 1 or additional table (if used) of these instructions, for each relevant company for the year of income
item 1 in part D of the Research and development tax concession schedule 2009 or additional table (if used) for the company, for the year of income, and
A in table 3 of these instructions.

Table 2.3: Calculation of the reduced expenditure on Australian owned R&D for the Y-2 year of income
Row	Calculation element	Company 1	Company 2	Company 3
A	Incremental expenditure (step 2.1.1)	$	$	$
B	Adjustments to incremental expenditure (step 2.1.2)	$	$	$
C	Receipt of grants - initial clawback amount attributable to incremental expenditure (step 2.1.3)	$	$	$
C		$	$	$
D	Reduced expenditure on Australian owned R&D (step 2.1.4) (A + B − C) (Write 0 if negative.)	$	$	$
D		$	$	$

Transfer the amount at D for each company to:

table 1 or additional table (if used) of these instructions, for each relevant company for the year of income
item 1 in part D of the Research and development tax concession schedule 2009 or additional table (if used) for the company, for the year of income, and
B in table 3 of these instructions.

Table 2.4: Calculation of the reduced expenditure on Australian owned R&D for the Y-3 year of income
Row	Calculation element	Company1	Company 2	Company 3
A	Incremental expenditure (step 2.1.1)	$	$	$
B	Adjustments to incremental expenditure (step 2.1.2)	$	$	$
C	Receipt of grants - initial clawback amount attributable to incremental expenditure (step 2.1.3)	$	$	$
C		$	$	$
D	Reduced expenditure on Australian owned R&D (step 2.1.4) (A + B − C) (Write 0 if negative.)	$	$	$
D		$	$	$

Transfer the amount at D for each company to:

table 1 or additional table (if used) of these instructions, for each relevant company for the year of income
item 1 in part D of the Research and development tax concession schedule 2009 or additional table (if used) for the company, for the year of income, and
C in table 3 of these instructions.

Table 3: Calculation of increase in expenditure on Australian owned R&D
Row	Calculation element	Company 1	Company 2	Company 3
A	Reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y-1 year of income (from D in table 2.2)	$	$	$
A		$	$	$
B	Reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y-2 year of income (from D in table 2.3)	$	$	$
B		$	$	$
C	Reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y-3 year of income (from D in table 2.4)	$	$	$
C		$	$	$
D	Total (A + B + C)	$	$	$
E	Average reduced incremental expenditure on Australian owned R&D for theY-1, Y-2 and Y-3 years (D ÷ 3)	$	$	$
E		$	$	$
F	Reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y-0 year of income (from D in table 2.1)	$	$	$
F		$	$	$
G	Change in expenditure on Australian owned R&D (F − E)	$	$	$
G	Change in expenditure on Australian owned R&D (F − E)	$	$	$
H	If G above is a negative number, write 0 at H. Otherwise, this is equal to the amount shown at G. This is the increase in expenditure on Australian owned R&D.	$	$	$
H		$	$	$

Transfer the amount at D for each company to:

column E in table 1 for each company.

Transfer the amount at E for each company to:

column F in table 1 for each company.

Transfer the amount at G for each company to:

column G in table 1 for each company.

Transfer the amount at H for each company to:

column H in table 1 for each company, and
A of table 15 for the claimant company only.

If the result at H is zero, leave M item 3 in part D of the Research and development tax concession schedule 2009 blank (you are ineligible for the Australian owned R&D incremental tax concession), and print X in the No box at the top of part D of the Research and development tax concession schedule 2009.

Note: If you are grouped with more than three companies, you will need to complete additional copies of table 3.

Table 4: Foreign owned R&D incremental tax concession calculation - s73RB and 73RD steps
Row	Campany	A Y0 E, table 5	B Y-1 A, table 6	C Y-2 B, table 6	D Y-3 C, table 6	E Total of columns B, C and D D, table 6	F Column E divided by 3 E, table 6	G Column A minus column F G, table 6	H Zero if column G is negative H, table 6
a	-	-	-	-	-	-	-	-	-
b	-	-	-	-	-	-	-	-	-
c	-	-	-	-	-	-	-	-	-
d	-	-	-	-	-	-	-	-	-
e	Group members - totals from additional table	-	-	-	-	-	-	-	-
f	Total of eligible company and group	-	-	-	-	-	-	-	-

Table 5: Calculation of the reduced expenditure on foreign owned R&D for Y0 year of income
Row	Calculation element	Company 1	Company 2	Company 3
A	Foreign owned R&D expenditure from part A of the Research and development tax concession schedule 2009 (step 3.1.1)	$	$	$
A		$	$	$
B	Adjustments to foreign owned R&D expenditure (step 3.1.2)	$	$	$
C	Expenditure on foreign owned R&D (A + B)	$	$	$
D	Receipt of grants - initial clawback amount attributable to incremental expenditure (step 3.1.3)	$	$	$
D		$	$	$
E	Reduced expenditure on foreign owned R&D (step 3.1.4) (C − D) (Write 0 if negative.)	$	$	$
E		$	$	$

Transfer the amount at E for each company to:

column A, for each company, in table 4 above
item 1 in part E of the Research and development tax concession schedule 2009 or additional table (if used) for the Y0 year of income, and
F in table 6 of these instructions (for the Y0 year).

Note: If you are grouped with more than three companies, you will need to complete additional copies of table 5. Also, if you did not have a nil expenditure year for the Y-1, Y-2 and Y-3 years, you will need to use additional copies of this table when completing step 3.3.2.

Table 6: Total reduced notional expenditure on foreign owned R&D
Row	Calculation element	Company 1	Company 2	Company 3
A	Reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the Y-1 year of income	$	$	$
A		$	$	$
B	Reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the Y-2 year of income	$	$	$
B		$	$	$
C	Reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the Y-3 year of income	$	$	$
C		$	$	$
D	Total reduced notional expenditure on foreign owned R&D (A + B + C)	$	$	$
D		$	$	$
E	Average reduced notional expenditure on foreign owned R&D for the Y-1, Y-2 and Y-3 years (D ÷ 3)	$	$	$
E		$	$	$
F	Reduced expenditure on foreign owned R&D by the eligible company in its group membership period for the Y-0 year of income (E in table 5)	$	$	$
F		$	$	$
G	Change in expenditure on foreign owned R&D (F - E)	$	$	$
G	Change in expenditure on foreign owned R&D (F - E)	$	$	$
H	If G above is a negative number, write 0 at H. Otherwise, H is equal to the amount shown at G. This is the increase in expenditure on foreign owned R&D.	$	$	$
H		$	$	$

Transfer the amount at D for each company to:

column E in table 4 for the relevant company.

Transfer the amount at E for each company to:

column F in table 4 for the relevant company.

Transfer the amount at G for each company to:

column G in table 4 for the relevant company.

Transfer the amount at H for each company to:

column H in table 4 for the relevant company
A in table 17 for the claimant company only.

If the result at H is zero, leave K item 2 in part E of the Research and development tax concession schedule 2009 blank (you are ineligible for the foreign owned R&D incremental tax concession), and print X in the No box at the top of part E of the Research and development tax concession schedule 2009.

Note: If you are grouped with more than three companies, you will need to complete additional copies of table 6.

Table 7: Calculation of adjusted increase in expenditure on R&D by the group [s73RE]
Adjustment balance calculation [s73V] – Adjustment balance inputs	Adjustment balance calculation [s73V] – A Group R&D spend Y-1	Adjustment balance calculation [s73V] – B Group R&D spend Y-2	Adjustment balance calculation [s73V] – C Group R&D spend Y-3	Adjustment balance calculation [s73V] – D AA0	Adjustment balance calculation [s73V] – E AA-1	Adjustment balance calculation [s73V] – F RA-1	Adjustment balance calculation [s73V] – G Adjustment balance	s73RE calculation – H Adjusted increase in expenditure by the group
-	C, table 8.1	C, table 8.2	C, table 8.3	D, table 9	D, table 10	D, table 11	C, table 12 or F, table 13	E, table 14
-	-	-	-	-	-	-	-	-

Table 8.1: R&D spend Y-1
Row	Calculation element	Amount
A	Group Y-1 from table 1(row f of column B)	$
B	Group Y-1 from table 4 (row f of column B)	$
C	R&D spend Y-1 (A + B) Transfer the result at C to: column A in table 7 C in table 9 E in table 13.	$
C		$

Table 8.2: R&D spend Y-2
Row	Calculation element	Amount
A	Group Y-2 from table 1 (row f of column C)	$
A	Group Y-2 from table 1 (row f of column C)	$
B	Group Y-2 from table 4 (row f of column C)	$
B	Group Y-2 from table 4 (row f of column C)	$
C	R&D spend Y-2 (A + B) Transfer the result at C to: column B in table 7 above A in table 9 C in table 10 A in table 11.	$
C		$

Table 8.3: R&D spend Y-3
Row	Calculation element	Amount
A	Group Y-3 from table 1 (row f of column D)	$
A	Group Y-3 from table 1 (row f of column D)	$
B	Group Y-3 from table 4 (row f of column D)	$
B	Group Y-3 from table 4 (row f of column D)	$
C	R&D spend Y-3 (A + B) Transfer the result at C to: column C in table 7 A in table 10 B in table 11.	$
C		$

Table 9: Calculation of adjustment amount for Y0 (AA0)
Row	Calculation element	Amount
A	R&D spend Y-2 (from C in table 8.2)	$
A	R&D spend Y-2 (from C in table 8.2)	$
B	A 0.8	$
C	R&D spend Y-1 (from C in table 8.1)	$
C	R&D spend Y-1 (from C in table 8.1)	$
D	AA0 (B - C) (Write 0 if negative.)	$

Transfer the amount at D to:

column D, AA0, in table 7
A in table 12
B in table 13.

Table 10: Calculation of adjustment amount for Y-1 (AA-1)
Row	Calculation element	Amount
A	R&D spend Y-3 (from C in table 8.3)	$
A	R&D spend Y-3 (from C in table 8.3)	$
B	A × 0.8	$
C	R&D spend Y-2 (from C in table 8.2)	$
C	R&D spend Y-2 (from C in table 8.2)	$
D	AA-1 (B - C) (Write 0 if negative.)	$

Transfer the amount at D to:

column E in table 7
B in table 12
C in table 13.

Table 11: Calculation of running average for Y-1 (RA-1)
Row	Calculation element	Amount
A	The R&D spend Y-2 (from C in table 8.2)	$
A	The R&D spend Y-2 (from C in table 8.2)	$
B	The R&D spend Y-3 (from C in table 8.3)	$
B	The R&D spend Y-3 (from C in table 8.3)	$
C	Total (A + B)	$
D	RA-1 (C divided by 2)	$

Transfer the result from D to:

column F in table 7
A in table 13.

Table 12: Calculation of the adjustment balance
Row	Calculation elements	Amout
A	Write AA0 (from column D in table 7)	$
A	Write AA0 (from column D in table 7)	$
B	Write AA-1 (from column E in table 7)	$
B	Write AA-1 (from column E in table 7)	$
C	Adjustment balance (A + B)	$

Transfer the amount at C to:

column G in table 7
D in table 14.

Table 13: Calculation of the adjustment balance
Row	Calculation element	Amount
A	RA-1 (from column F in table 7)	$
B	Write AA0 (from column D in table 7)	$
C	Write AA-1 (from column E in table 7)	$
D	Subtotal (A + B + C)	$
E	R&D spend Y-1 (from Cin table 8.1)	$
F	Adjustment balance (D − E) (Write 0 if negative.)	$

Transfer the amount at F to:

column G in table 7, and
D in table 14.

Table 14: Calculation of the adjusted increase in expenditure on R&D by the group
Row	Calculation element	Amount
A	Row f of column G in table 1	$
B	Row f of column G in table 4	$
C	A + B (Write 0 if negative.)	$
D	Adjustment balance (from column G in table 7)	$
D	Adjustment balance (from column G in table 7)	$
E	Adjusted increase in expenditure by the group (C − D) (Write 0 if negative.)	$
E		$

Transfer the result at E to:

column H in table 7
E in table 15
E in table 17.

Table 15: Calculation of your company's share of the Australian owned part of the adjusted increase in expenditure on R&D by the group
Row	Calculation element	Amount
A	Increase in expenditure on Australian owned R&D by the eligible company (row a of column H in table 1)	$
A		$
B	Total increase in expenditure on Australian owned R&D by the eligible companies in the group (row f of column H in table 1)	$
B		$
C	Net increase in expenditure on Australian owned R&D by the group (row f of column G in table 1)	$
C		$
D	Net increase in expenditure on foreign owned R&D by the group (row f of column G in table 4) Note: If the figure at row f of column G in table 4 is negative, write 0 at this label.	$
D		$
E	Adjusted increase in expenditure on R&D by the group (from E in table 14)	$
E		$
F	A ÷ B (Do not round this number.)	$
F	A ÷ B (Do not round this number.)	$
G	C + D	$
H	C ÷ G (Do not round this number.)	$
H	C ÷ G (Do not round this number.)	$
I	The company's share of the Australian owned part of the adjusted increase (E × F × H)	$
I		$

Transfer the amount at I to:

A in table 16.

Note: If the figures at A, B, C or E above are zero, leave M item 3 in part D of the Research and development tax concession schedule 2009 blank (you are ineligible for the Australian owned R&D incremental tax concession), and print X in the No box at the top of part D of the Research and development tax concession schedule 2009. If you are ineligible, skip step 5.2 and go to step 6.

Table 16: Company
Row	Calculation element	Amount
A	The company's share of the Australian owned part of the adjusted increase (from I in table 15)	$
B	A × 0.5	$

Transfer the amount at B to M item 3 in part D of the Research and development tax concession schedule 2009, and to M item 7 of the Company tax return 2009.

Print X in the Yes box at the top of part D of the Research and development tax concession schedule 2009.

Table 17: Calculation of your company's share of the foreign owned part of the adjusted increase in expenditure on R&D by the group
Row	Calculation element	Amount
A	Increase in expenditure on foreign owned R&D by the eligible company (row a of column H in table 4)	$
A		$
B	Total increase in expenditure on foreign owned R&D by the eligible companies in the group (row f of column H in table 4)	$
B		$
C	Net increase in expenditure on foreign owned R&D by the group (row f of column G in table 4)	$
C		$
D	Net increase in expenditure on Australian owned R&D by the group (row f of column G in table1) Note: If the figure at row f of column G in table 1 is negative, write 0 at this label.	$
D		$
E	Adjusted increase in expenditure on R&D by the group (from E in table 14)	$
E		$
F	A ÷ B (Do not round this number.)	$
F	A ÷ B (Do not round this number.)	$
G	C + D	$
H	C ÷ G (Do not round this number.)	$
H	C ÷ G (Do not round this number.)	$
I	The company's share of the foreign owned part of the adjusted increase (E × F × H)	$
I		$

Transfer the amount at I to:

A in table 18.

Note: If the figures at A, B, C or E above are zero, leave K item 2 in part E of the Research and development tax concession schedule 2009 blank (you are ineligible for the foreign owned R&D incremental tax concession), and print X in the No box at the top of part E of the Research and development tax concession schedule 2009. If you are ineligible, skip step 6.2 and go to Part F - R&D tax offset (eligible Australian owned expenditure only).

Table 18: Company
Row	Calculation element	Amount
A	The company's share of the foreign owned part of the adjusted increase (from I in table 17)	$
B	A × 0.75	$

Transfer the amount at B to K item 2 in part E of the Research and development tax concession schedule 2009, and to K item 7 of the Company tax return 2009, and print X in the Yes box at the top of part E of the Research and development tax concession schedule 2009.

Last modified: 12 Aug 2020QC 21746