Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_27
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 27
Character Range: 290936–292136

27  Subsection 73P(2) (definition of incremental expenditure)
Repeal the definition, substitute:

incremental expenditure means expenditure that:
 (a) is research and development expenditure except:
 (i) expenditure to lease or hire plant; and
 (ii) expenditure under a contract to the extent that it is, in substance, for the acquisition of plant and not for the receipt of services; and
 (b) can be taken into account in working out the amount of a deduction under subsection 73B(13) or (14) or could be taken into account in working out the amount of a deduction under subsection 73B(14) apart from paragraph 73B(14)(b).

Note: The effects of paragraph (b) of the definition of incremental expenditure include preventing a company from counting as incremental expenditure:

(a) expenditure that the company is required by subsection 73B(9) to disregard because it was incurred by the company for the purpose of carrying on research and development activities on behalf of another person; and

(b) expenditure on overseas research and development activities that is not certified expenditure and so is expenditure for which subsection 73B(17A) denies a deduction under subsection 73B(13) or (14).