Item 1 Contracted expenditure - RRA



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Contracted expenditure is expenditure on work carried out by a registered research agency (RRA) on behalf of an eligible company. The RRA must not be an associate of the eligible company, and must have been registered under section 39F of the IRADA 1986 when the expenditure was incurred. The RRA must have been registered in respect of the class of R&D activities on which the expenditure was incurred.

At item 1 enter expenditure on items included in paragraph (c) of the definition of 'contracted expenditure' under subsection 73B(1) of ITAA 1936. These amounts should be adjusted as required under subsection 73B(11) of ITAA 1936 for advance and accelerated expenditure.

Expenditure qualifies as contracted expenditure only if, at the time the expenditure was incurred, the eligible company was capable of using, or had formulated a plan to use, any results of the R&D directly in connection with a business that the company carried on or proposed to carry on (subsection 73B(1B) of ITAA 1936).

At A enter the total amount of contracted expenditure that is RRA incurred (the base amount).

At B enter any amount of the contracted expenditure claimable at 100%.

At C enter any amount of the contracted expenditure claimable at 125%.

At D enter any amount of the contracted expenditure claimable at 150%.


The total of the amounts at B, C and D must equal the base amount otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.

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Last modified: 24 Jun 2008QC 18884