Item 3 R&D expenditure - 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

Write at item 3 'R&D expenditure - Salary expenditure' the amount of salary expenditure you have incurred for all of your employees, to the extent that it has been incurred on R&D activities.

The amounts shown at this label include expenditure on salary and wages (and associated on costs) of:

  • managers or supervisors of research staff
  • researchers
  • technical employees
  • supervisors of research staff conducting R&D activities.

Apportion the company's expenditure between R&D activities and other activities that the company undertakes. Show expenditure on R&D activities only at this label.

Separate the expenditure at item 3 between Australian owned R&D activities (label E) and foreign owned R&D activities (label F).

Do not show any amounts at this label for expenditure incurred to an associate. If you incurred expenditure to your associate, you are only eligible to claim the amount incurred in the income year to the extent it is paid. Amounts paid to an associate are shown at Part A item 6. You also need to provide further details of expenditure to your associates in Part D - R&D expenditure to associates.

You cannot claim this type of expenditure on R&D activities unless your total notional deduction amount is at least $20,000.

Further Information

For further information about what amounts may be claimed as 'Salary expenditure' see Salary expenditure in our guide Research and development tax incentive - amounts you can claim.

For further information about apportioning your expenditure between R&D activities and non-R&D activities, see Research and development tax incentive - Keeping records and calculating your notional deductions.

End of further information
Last modified: 21 Dec 2012QC 26005