House of Representatives

Supplementary Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. P J Keating MP)

GENERAL OUTLINE

The first amendment will amend clause 7 of the Bill to clarify the method of calculating the amount of R & D expenditure which is to be taken to have been incurred, and the amount of R & D recoupment or grant which is to be taken to have been received or to which an entitlement has arisen, as the case may be, by a company which is a partner in a partnership of otherwise eligible companies.

The second amendment amends clause 8 of the Bill and will clarify a provision which could unintentionally operate to negate the operation of section 73B of the Principal Act in the period from its commencement on 25 June 1986 to 20 November 1987.