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  • Item 1 R&D expenditure - Research service provider (RSP)



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

    End of attention

    Write at item 1 'R&D expenditure - Research service provider (RSP)' the expenditure you have incurred to an RSP, to the extent that it has been incurred on R&D activities.

    Apportion expenditure between R&D activities and other activities that the company undertakes and show expenditure on R&D activities only at this label.

    Separate the expenditure at item 1 between Australian owned R&D activities (label A) and foreign owned R&D activities (label B).

    In most circumstances, expenditure to an RSP is not subject to the $20,000 notional deduction threshold. You will therefore be able to claim an R&D tax offset for this expenditure, regardless of the amount. However, these rules will only apply where:

    • the RSP is not an associate of the R&D entity
    • the R&D activities are within a research field for which the RSP is registered under the IR&D Act.
    Further Information

    For further information on amounts incurred to a RSP that you can claim see Contract expenditure you incur to a RSP in our guide Research and development tax incentive - amounts you can claim.

    For further information about apportioning your expenditure between R&D activities and non-R&D activities, see Research and development tax incentive - Keeping records and calculating your notional deductions.

    End of further information
    Last modified: 21 Dec 2012QC 26005