How do you calculate the feedstock adjustment?
To calculate the feedstock adjustment to include in your assessable income in the trigger year, first work out the lesser of the following two amounts, then divide that amount by three:
- expenditure in acquiring or producing feedstock inputs and energy inputs for which you have claimed the incentive, to the extent that it is reasonably attributable to the production of the relevant feedstock output (feedstock expenditure)
- feedstock revenue.
Each feedstock output can only lead to one feedstock adjustment. Note, if an entity’s notional R&D deductions that exceeds $100 million for an income year, the amount of feedstock expenditure used in the calculation of the feedstock adjustment may be reduced.