INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 355 - Research and Development  

Subdivision 355-K - Application to Cooperative Research Centres  

SECTION 355-580   When notional deductions for CRC contributions arise  

Monetary contributions are deductible

355-580(1)  
An *R & D entity can deduct for an income year expenditure it incurs during that year to the extent that:


(a) the expenditure is in the form of monetary contributions under the *CRC program; and


(b) the contributions have been or will be spent under the CRC program on one or more *R & D activities for which the R & D entity is registered under section 27A of the Industry Research and Development Act 1986 for an income year.

Note 1:

The R & D activities will need to be conducted during the income year the R & D entity is registered for those activities (see sections 27A and 27J of the Industry Research and Development Act 1986 ).

Note 2:

Expenditure incurred in income years starting on or after 1 July 2011 may be deductible for activities registered for income years starting before 1 July 2011 (see section 355-200 of the Income Tax (Transitional Provisions) Act 1997 ).

355-580(2)  
Subsection (1) does not apply to expenditure to the extent that it is incurred out of Commonwealth funding. No other deductions arise for monetary contributions etc.

355-580(3)  
Neither:


(a) a contribution an *R & D entity can deduct under subsection (1); nor


(b) expenditure incurred under the *CRC program, to the extent that the expenditure is incurred out of:


(i) a contribution an R & D entity can deduct under subsection (1); or

(ii) Commonwealth funding;

can be deducted by any R & D entity under any other provision of this Division for any income year.

355-580(4)  
If an asset ' s *cost includes expenditure incurred under the *CRC program out of:


(a) a contribution an *R & D entity can deduct under subsection (1); or


(b) Commonwealth funding;

an amount equal to the asset ' s decline in value cannot be deducted under this Division by any R & D entity for any income year.


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