Item 2 Salary expenditure



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

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.
Further Information

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 information

This 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.

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More information

For more information, see:

Last modified: 24 Jun 2008QC 18884