Income Tax Assessment Act 1997
Sections 355-205 (deductions for R & D expenditure) and 355-480 (deductions for earlier year associate R & D expenditure) do not apply to the following expenditure:
(a) expenditure incurred to acquire or construct:
(i) a building or a part of a building; or
(ii) an extension, alteration or improvement to a building;
(b) expenditure included in the *cost of a tangible *depreciating asset for the purposes of Division 40 (as that Division applies as described in section 355-310 or otherwise);
(c) expenditure incurred for interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936 ) payable to an entity.
Expenditure covered by paragraph (a) may be deductible under Division 43 (capital works).
The decline in value of an asset covered by paragraph (b) may be notionally deductible under section 355-305 .
Expenditure covered by paragraph (c) may be deductible under section 8-1 .Expenditure on core technology 355-225(2)
Sections 355-205 (deductions for R & D expenditure) and 355-480 (deductions for earlier year associate R & D expenditure) do not apply to expenditure incurred in acquiring, or in acquiring the right to use, technology wholly or partly for the purposes of one or more *R & D activities if:
(a) a purpose of the R & D activities was or is:
(i) to obtain new knowledge based on that technology; or
(ii) to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or
(b) the R & D activities were or are an extension, continuation, development or completion of the activities that produced that technology.