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Other things you need to be aware of

You should consider other requirements under the ITAA 1997 and IR&D Act.

Last updated 9 January 2022

If you are an eligible R&D entity and you want to claim the tax incentive, you should consider other requirements under the ITAA 1997 and IR&D Act. These include that you:

  • must register your R&D activities every year
  • may need to adjust your income tax return if        
    • you have received a government recoupment (clawback adjustment)
    • your eligible activities have produced tangible products for supply to someone else, or to be applied to your own use - other than in transforming such products for supply (feedstock adjustment)
    • you are registered for GST
  • must claim your R&D tax offset by lodging a company tax return and R&D tax incentive schedule at the end of your income year
  • must keep adequate records to demonstrate to AusIndustry, Innovation Australia and to us that you carried out the eligible R&D activities and that you did incur eligible R&D expenditure for those activities
  • must consider any special transitional rules that apply for situations that extend over income years where the R&D tax concession provisions and the R&D tax incentive provisions apply.

Also note that amounts which you are notionally entitled to deduct under Division 355 are not able to be actually deducted under or in relation to any other provisions.

More information is available at Registering, Adjustments, and Eligibility.