Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 1/8)
Character Range: 291589–294917

10                                                                 An R&D entity:                                                                                                                                                                                                                                            Subdivision 355‑G
                                                                   • receives, or becomes entitled to receive, a recoupment from government relating to R&D activities; or
                                                                   • can deduct, under Division 355, expenditure on goods, materials or energy used during R&D activities to produce marketable products or products applied to the R&D entity's own use;
                                                                   and the entity is entitled under Division 355 to a tax offset relating to those R&D activities.
                                                                   An amount is included in its assessable income.

Subdivision 20‑A—Insurance, indemnity or other recoupment for deductible expenses

Guide to Subdivision 20‑A

20‑10  What this Subdivision is about

      Recoupment of expenses you incurred and can deduct
      Your assessable income may include an amount that you receive by way of insurance, indemnity or other recoupment if:
        it is for a deductible expense; and
        it is not otherwise assessable income.
      Recoupment of expenses you did not incur but can deduct
      Your assessable income may include an amount that another entity receives by way of insurance, indemnity or other recoupment if:
        it is for an expense that you can deduct; and
        it is not otherwise your assessable income.

Table of sections
20‑15 How to use this Subdivision

What is an assessable recoupment?
20‑20 Assessable recoupments
20‑25 What is recoupment?
20‑30 Tables of deductions for which recoupments are assessable

How much is included in your assessable income?
20‑35 If the expense is deductible in a single income year
20‑40 If the expense is deductible over 2 or more income years
20‑45 Effect of balancing charge
20‑50 If the expense is only partially deductible
20‑55 Meaning of previous recoupment law

What if you can deduct a loss or outgoing incurred by another entity?
20‑60 If you are the only entity that can deduct an amount for the loss or outgoing
20‑65 If 2 or more entities can deduct amounts for the loss or outgoing

20‑15  How to use this Subdivision

If you incurred the deductible loss or outgoing
 (1) First, read sections 20‑20 to 20‑30 to work out whether you have received an assessable recoupment. If not, you do not need to read the rest of the Subdivision.
 (2) If you have received one or more assessable recoupments, sections 20‑35 to 20‑55 tell you how much is included in your assessable income for an income year.

If another entity incurred a loss or outgoing you can deduct
 (3) Sections 20‑60 and 20‑65 tell you how to apply this Subdivision.

What is an assessable recoupment?

20‑20  Assessable recoupments

Exclusion
 (1) An amount is not an assessable recoupment to the extent that it is *ordinary income, or it is *statutory income because of a provision outside this Subdivision.

Insurance or indemnity
 (2) An amount you have