Income Tax Assessment Act 1997
An R & D entity may be entitled to a tax offset for R & D activities. The tax offset may be a refundable tax offset if the R & D entity ' s aggregated turnover is less than $20 million.
To be entitled to the tax offset, the R & D entity needs one or more notional deductions under this Division.
There are 2 main kinds of notional deductions. One is for expenditure on R & D activities. The other is for the decline in value of tangible depreciating assets used for R & D activities.
All of these notional deductions require the R & D entity to be registered for the R & D activities under Part III of the Industry Research and Development Act 1986 .