Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_73qa:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 73QA (pt 1/2)
Character Range: 293490–296139

73QA  Extra deduction for increase in expenditure on Australian owned research and development

Prerequisites for deduction

 (1) An eligible company may deduct an amount for the Y0 year of income if:
 (a) the company can deduct an amount for that year under subsection 73B(13) or (14) for incremental expenditure incurred in the company's group membership period; and
 (b) for each of the Y‑1, Y‑2 and Y‑3 years of income, any of the following conditions is met:
 (i) the eligible company could deduct for the year of income an amount under subsection 73B(13) or (14) for expenditure incurred in its group membership period;
 (ii) one of the eligible company's other group members could deduct for the year of income an amount under subsection 73B(13) or (14) for expenditure incurred in its group membership period;
 (iii) the eligible company received a start grant or commercial ready grant in respect of the year of income;
 (iv) one of the eligible company's other group members received a start grant or commercial ready grant in respect of the year of income;
  (whether or not the same condition is met for 2 or more of those years, and whether or not a condition is met by the same company for 2 or more of those years); and
 (c) the amount (the eligible company's share of the Australian owned part of the adjusted increase in expenditure on R&D by the group) worked out under subsection (3) is more than zero.

Amount of deduction

 (2) The amount of the eligible company's deduction for the Y0 year of income is 50% of the eligible company's share of the Australian owned part of the adjusted increase in expenditure on R&D by the group.

 (3) The eligible company's share of the Australian owned part of the adjusted increase in expenditure on R&D by the group is the amount worked out using the formula:
where:

adjusted increase in expenditure on R&D by the group means the amount worked out under section 73RE.

increase in expenditure on Australian owned R&D by the eligible company means the amount worked out under subsection 73RA(1).

net increase in expenditure on Australian owned R&D by the group means the amount worked out under section 73RC.

net increase in expenditure on foreign owned R&D by the group means the amount worked out under section 73RD.

total increase in expenditure on Australian owned R&D by the eligible companies in the group means the amount worked out under subsection 73RA(2).

Note: The amount worked out using the formula will not be more than zero if at least one of the following is zero:

(a) the increase in expenditure on Australian owned R&D by the eligible company;

(b) the net increase