Eligible feedstock expenditure
(relevant to Australian owned and foreign owned R&D)
Include at item 6 the amount of eligible feedstock expenditure as defined in subsections 73B(1) and 73B(1A) of the ITAA 1936 for relevant Australian owned or foreign owned R&D. Eligible feedstock expenditure is the excess of the feedstock input over the feedstock output for the related activities, in the year of income. The eligible feedstock expenditure for Australian owned R&D can attract the additional 25% concession component.
You cannot claim this type of expenditure in respect of Australian owned R&D unless your aggregate research and development amount is greater than $20,000.
You cannot claim this type of expenditure in respect of foreign owned R&D unless your expenditure on foreign owned R&D is greater than $20,000.
For Australian owned R&D only, show the remainder of feedstock input at item 14 as residual feedstock expenditure. For more information, see item 14.
Adjust the amount of eligible feedstock expenditure claimed in accordance with the prepayment provisions (sections 82KZL to 82KZMF of the ITAA 1936).
This item excludes:
- eligible feedstock expenditure in respect of Australian owned R&D where your aggregate research and development amount is less than or equal to $20,000
- eligible feedstock expenditure in respect of foreign owned R&D where your expenditure on foreign owned R&D is less than or equal to $20,000.
At V show the total amount of eligible feedstock expenditure (the base amount).
At W show any amount of eligible feedstock expenditure on Australian owned R&D claimable at 100%.
At X show any amount of eligible feedstock expenditure on Australian owned R&D claimable at 125%.
At Z show any amount of eligible feedstock expenditure on foreign owned R&D.
The total of the amounts at W, X and Z must equal the base amount at V.
For more information, see:
- subsections 73B(1), 73B(1A), 73B(14), 73B(14C) and 73B(14D) of the ITAA 1936
- Guide to the R&D tax concession.