Notional deductions

You will be entitled to an R&D tax offset under the R&D tax incentive if:

  • you have registered eligible R&D activities
  • your total notional deduction amount for an income year is at least $20,000.

If your total notional deductions are less than $20,000, you can only get an R&D tax offset for:

  • expenditure incurred to a research service provider (RSP), for services in a research field for which the RSP is registered under the Industry Research and Development Act 1986 (IR&D Act) - where that RSP isn't an associate of the R&D entity
  • expenditure incurred as a monetary contribution under the Cooperative Research Centre (CRC) program.
    Last modified: 25 Oct 2016QC 25805