Income Tax Assessment Act 1997
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.
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 ).
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)
(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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