• Item 5

    Attention

    Warning:

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

    End of attention

    Plant leasing

    (relevant to Australian owned R&D only)

    Item 5 is a component of paragraph (c) of the definition of research and development expenditure in subsection 73B(1) of the ITAA 1936. You will need to show any eligible expenditure incurred in the hire or leasing of an item of plant that is directly in respect of Australian owned R&D activities.

    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.

    Adjust the amount of plant leasing expenditure claimed in accordance with the prepayment provisions (sections 82KZL to 82KZMF of the ITAA 1936).

    At R show the total amount of expenditure incurred on plant leasing for Australian owned R&D (the base amount). Only include plant leasing expenditure in respect of Australian owned R&D if your aggregate research and development amount is greater than $20,000.

    At S show any amount of the plant leasing expenditure on Australian owned R&D claimable at 100%.

    At T show any amount of the plant leasing expenditure on Australian owned R&D claimable at 125%.

    The total of the amounts at S and T must equal the base amount at R.

    For more information, see:

    • subsections 73B(1) and 73B(14) of the ITAA 1936
    • Guide to the R&D tax concession.
    Last modified: 01 Jun 2011QC 24211