At item 2 enter the amount of salary expenditure for employees who are actually carrying out an eligible R&D activity (as defined in subsection 73B(1) of ITAA 1936, including:
- salaries, wages, allowances, bonuses, overtime payments, penalty rate payments, annual leave, sick leave and long service leave, and
- on-costs such as contributions to a superannuation fund, premiums for workers' compensation insurance and payroll tax.
You may need to apportion the expenditure incurred between R&D and non-R&D activities. For more information, see Taxation Ruling IT 2552 - Research and development (R&D) - costing of expenditure, paragraphs 4-12.
End of further informationThis item does not include:
- salary expenditure incurred in the construction of R&D plant, depreciating assets, structural improvements or buildings
- salary expenditure of R&D support staff not directly connected with the research activity - include those at item 3 Other R&D expenditure, and
- salary expenditure claimed that is to be adjusted in accordance with the prepayment provisions (sections 82KZL to 82KZMF of ITAA 1936).
At E enter the total R&D salary expenditure incurred (the base amount).
At F enter any amount of the total R&D salary expenditure claimable at 100%.
At G enter any amount of the total R&D salary expenditure claimable at 125%.
The total of the amounts at F and G must equal the base amount otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.
End of attentionMore information
For more information, see: