Item 6 Eligible feedstock expenditure

Feedstock expenditure items

To find out how much to include at the feedstock expenditure items 6 and 14, first determine the following amounts.

• Feedstock expenditure - expenditure incurred in acquiring or producing materials or goods processed or transformed by the company in R&D activities. It includes expenditure on energy directly input into processing or transforming these materials or goods.
• Feedstock input - feedstock expenditure for materials or goods that were processed or transformed in R&D activities during the year of income.
• Feedstock output - the sales proceeds or value of any products obtained during the year of income from processing or transforming the materials or goods that were feedstock expenditure. It is either the amount received or receivable for the products sold in arm's length transactions or, if not sold, or not sold in an arm's length transaction, the amount that would have been received if they had been sold in an arm's length transaction.

Include at item 6 the amount of eligible feedstock expenditure as defined in subsections 73B(1) and (1A) of ITAA 1936 for related R&D activities. It is the excess of the feedstock input over the feedstock output for the related activities, in the year of income. The eligible feedstock expenditure will attract the additional 25% concession component.

If the company has eligible feedstock expenditure, include this amount at item 6. Enter the remainder of feedstock input at item 14 as residual feedstock expenditure.

At V enter the total amount of eligible feedstock expenditure (the base amount).

At W enter any amount of eligible feedstock expenditure claimable at 100%.

At X enter any amount of the eligible feedstock expenditure claimable at 125%.

More information

For more information, see:

• subsection 73B(1)of ITAA 1936
• subsection 73B(1A) of ITAA 1936
• Guide to the R&D tax concession