Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:4_73y
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 4 cl 73Y
Character Range: 116450–117873

73Y  Additional deduction

 (1) The object of this section is to provide a tax incentive, in the form of a deduction, to make eligible companies more internationally competitive by:
 (a) encouraging the development by eligible companies of innovative products, processes and services; and
 (b) increasing investment by eligible companies in defined research and development activities; and
 (c) promoting the technological advancement of eligible companies through a focus on innovation and high technical risk in defined research and development activities; and
 (d) encouraging the use by eligible companies of strategic research and development planning; and
 (e) creating an environment that is conducive to increased commercialisation of new processes and product technologies developed by eligible companies.
The benefits of the tax incentive are targeted by being limited to particular expenditure on certain defined activities.

 (2) Each of the companies that have all or part of the premium amount distributed to it can deduct the lesser of:
 (a) 50% of that amount for the year of income for which it is distributed; or
 (b) 50% of the amount of incremental expenditure incurred by the company in the Y0 year of income that is eligible for a deduction under section 73B at the rate of 125%.

Note: The paragraph (2)(b) amount may be less than the paragraph (2)(a) amount because of sections 73C, 73CA or 73CB.