Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
The amendments to the Taxation Laws Amendment (Research and Development) Bill 2001:
- remove the provision that treats trading stock as plant while it is subject to research and development activities;
- remove the concurrent plant use provisions; and
- ensure that an eligible company which is unregistered but receives an R & D Start grant can establish a 3 year history for the incremental concession.
Date of effect: Amendments 1 to 6 and 8 to 10 omit the relevant provisions from the date of effect of those provisions. Amendment 7 applies to assessments for the income year in which 1 July 2001 occurs and for later income years. Amendments 11 and 12 apply to expenditure incurred in the first income year starting after 30 June 2001.
Proposal announced: The amendments have not previously been announced.
Financial impact: The amendments will result in a cost to the revenue as set out in the following table.
Compliance cost impact: The amendments are not expected to result in any additional compliance costs.