Income Tax Assessment Act 1936

Div 3 heading inserted by No 172 of 1978.

S 73RA repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s 82KZLB . S 73RA formerly read:

SECTION 73RA INCREASES IN EXPENDITURE ON AUSTRALIAN OWNED R & D BY ELIGIBLE COMPANIES  
73RA(1)
For the purposes of section 73QA , work out the increase in expenditure on Australian owned R & D by the eligible company as follows: Method statement

Step 1.

For each of the Y ₀ , Y _-1 , Y _-2 and Y _-3 years of income, work out the eligible company ' s incremental expenditure incurred in its group membership period.

Step 2.

For each of the Y ₀ , Y _-1 , Y _-2 and Y _-3 years of income, work out how much (if any) of the initial clawback amount (if any) under section 73C relating to expenditure incurred by the eligible company is attributable to incremental expenditure incurred in the eligible company ' s group membership period.

Step 3.

For each of those years of income, reduce (but not below zero) the result of step 1 for the year of income by the result of step 2 for the year of income. The result is the reduced expenditure on Australian owned R & D by the eligible company in its group membership period for the year of income.

Step 4.

Add up:

(a) the reduced expenditure on Australian owned R & D by the eligible company in its group membership period for the Y _-1 year of income; and

(b) the reduced expenditure on Australian owned R & D by the eligible company in its group membership period for the Y _-2 year of income; and

(c) the reduced expenditure on Australian owned R & D by the eligible company in its group membership period for the Y _-3 year of income.

Step 5.

Divide the result of step 4 by 3.

Step 6.

Subtract the result of step 5 from the reduced expenditure on Australian owned R & D by the eligible company in its group membership period for the Y ₀ year of income (see step 3). The result is the change in expenditure on Australian owned R & D by the eligible company .

Note:

The change in expenditure on Australian owned R & D by the eligible company may be a positive or negative number or zero.

Step 7.

The increase in expenditure on Australian owned R & D by the eligible company is:

(a) the change in expenditure on Australian owned R & D by the eligible company; or

(b) zero, if the change in expenditure on Australian owned R & D by the eligible company is a negative number.

73RA(2)
For the purposes of section 73QA , work out the total increase in expenditure on Australian owned R & D by the eligible companies in the group as follows: Method statement

Step 1.

For each group member that is an eligible company, work out the increase in expenditure on Australian owned R & D by the eligible company under subsection (1) of this section.

Step 2.

Total the results of step 1.

S 73RA inserted by No 164 of 2007 , s 3 and Sch 11 item 37, effective 25 September 2007. For application provision, see note under s 73B(1AAA) . For transitional provisions regarding reduced notional expenditure on foreign owned R & D, see note under s 73P(1) .