Tax Laws Amendment (Research and Development) Act 2015 (13 of 2015)

Schedule 1   Reduced tax offset rate for expenditure above $100 million

Part 1   Main amendments

Income Tax Assessment Act 1997

4   At the end of section 355-100


If notional deductions exceed $100 million

(3) Despite subsection (1), if the total of those amounts exceeds $100 million, the *R&D entity is instead entitled to a *tax offset for the income year equal to the sum of:

(a) that percentage of $100 million; and

(b) the product of the excess and the *corporate tax rate.

Note: The R&D entity may be able to reduce related amounts that would otherwise be:

(a) included in its assessable income because of a balancing, or feedstock, adjustment; or

(b) payable as extra income tax because of an R&D recoupment;

(see section 355-720).