Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_73ra
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 73RA
Character Range: 302482–305247

73RA  Increases in expenditure on Australian owned R&D by eligible companies

 (1) For the purposes of section 73QA, work out the increase in expenditure on Australian owned R&D by the eligible company as follows:

      Method statement
           Step 1. For each of the Y0, Y‑1, Y‑2 and Y‑3 years of income, work out the eligible company's incremental expenditure incurred in its group membership period.
           Step 2. For each of the Y0, Y‑1, Y‑2 and Y‑3 years of income, work out how much (if any) of the initial clawback amount (if any) under section 73C relating to expenditure incurred by the eligible company is attributable to incremental expenditure incurred in the eligible company's group membership period.
           Step 3. For each of those years of income, reduce (but not below zero) the result of step 1 for the year of income by the result of step 2 for the year of income. The result is the reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the year of income.
           Step 4. Add up:

                (a) the reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y‑1 year of income; and
                (b) the reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y‑2 year of income; and
                (c) the reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y‑3 year of income.

           Step 5. Divide the result of step 4 by 3.
           Step 6. Subtract the result of step 5 from the reduced expenditure on Australian owned R&D by the eligible company in its group membership period for the Y0 year of income (see step 3). The result is the change in expenditure on Australian owned R&D by the eligible company.
                  Note: The change in expenditure on Australian owned R&D by the eligible company may be a positive or negative number or zero.
           Step 7. The increase in expenditure on Australian owned R&D by the eligible company is:

                (a) the change in expenditure on Australian owned R&D by the eligible company; or
                (b) zero, if the change in expenditure on Australian owned R&D by the eligible company is a negative number.
 (2) For the purposes of section 73QA, work out the total increase in expenditure on Australian owned R&D by the eligible companies in the group as follows:

      Method statement
           Step 1. For each group member that is an eligible company, work out the increase in expenditure on Australian owned R&D by the eligible company under subsection (1) of this section.
           Step 2. Total the results of step 1.