• Item 10

    Attention

    Warning:

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

    End of attention

    Post 29 January 2001 balancing losses

    (relevant to Australian owned R&D only)

    If the company is entitled to deduct an amount under section 40-292 of the ITAA 1997 following a balancing adjustment event (such as disposal), include at item 10 the part of the balancing adjustment amount that relates to the use of the asset for the purpose of carrying on Australian owned R&D. The part of the balancing adjustment amount claimable at 125% is worked out using the formula in subsection 40-292(4) of the ITAA 1997. The remaining part of the balancing adjustment amount that relates to the use of the asset for the purpose of carrying on Australian owned R&D is claimable at 100%. Any amount relating to the use of the asset for another taxable purpose is not shown on the research and development tax concession schedule.

    If the company is entitled to deduct an amount under section 73BF of the ITAA 1936 following a balancing adjustment event, include the amount of the balancing adjustment at item 10. The part of the balancing adjustment that the company is entitled to claim at 125% is worked out using the formula in subsection 73BF(3) of the ITAA 1936. The remaining part is claimable at 100%.

    At K write the amount of any balancing adjustment (deduction).

    At N write any balancing adjustment (deduction) claimable at 100%.

    At O write any balancing adjustment (deduction) claimable at 125%.

    The total of the amounts at N and O must equal the base amount at K.

    For more information, see:

    • section 40-292 of the ITAA 1997
    • section 73BF of the ITAA 1936
    • Guide to the R&D tax concession.
    Last modified: 02 Jun 2010QC 22870