Income Tax Assessment Act 1997



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

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 ).

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.


(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.

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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