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Taxation Laws Amendment (Research and Development) Bill 2001

Supplementary Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Requests for amendment to be moved on behalf of the Government

General outline and financial impact

Amendments to the Taxation Laws Amendment (Research and Development) Bill 2001

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.

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
$1m $2m $2m $2m $3m

Compliance cost impact: The amendments are not expected to result in any additional compliance costs.

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