Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p1
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 1/17)
Character Range: 565212–567933

3                                                     R&D entity                                                                                                                           R&D partnership

Deduction
 (3) If the R&D partnership could deduct for the event year an amount under subsection 40‑285(2) of the new Act for:
 (a) the asset; and
 (b) the event;
if Division 40 of that Act applied as described in subsection (2) of this section, the partner is taken to be able to deduct under subsection 355‑525(2) of the new Act the partner's proportion of that amount for the event year.

Amount to be included in assessable income
 (4) If an amount (the section 40‑285 amount) would be included in the R&D partnership's assessable income for the event year under subsection 40‑285(1) of the new Act for the asset and the event if Division 40 of that Act applied as described in subsection (2) of this section, the sum of:
 (a) the partner's proportion of that amount; and
 (b) the following amount;
is taken to be included in the partner's assessable income for the event year under subsection 355‑525(3) of the new Act:

where:

adjusted section 40‑285 amount means so much of the section 40‑285 amount as does not exceed the total decline in value.
old law 1.25 rate deductions means the sum of the partner's notional Division 40 deductions, and notional Division 42 deductions, (if any) for the asset that were multiplied by 1.25 in working out the old law deductions.
total decline in value means the asset's cost, less its adjustable value, worked out under Division 40 of the new Act as it applies as described in subsection (2).

Application of Division 355
 (4A) In applying Division 355 of the new Act in relation to the asset for the income year, if one or more partners (including the partner) in the R&D partnership is entitled under section 355‑100 of the new Act to tax offsets for one or more income years for deductions under section 355‑520 of that Act for the asset, the partner is taken to have:
 (a) if an amount is taken to be included in the R&D entity's assessable income for the event year as mentioned in subsection (4) of this section—a clawback amount under section 355‑448 of the new Act for the income year equal to the amount mentioned in subsection (4B) of this section; or
 (b) if the partner is taken to be able to deduct an amount as mentioned in subsection (3) of this section—a catch up amount under section 355‑467 of the new Act for the income year equal to the amount of that deduction.
 (4B) The amount is an amount equal to the partner's proportion of the following:

where:
adjusted section 40‑285 amount means so much of the section 40‑285 amount as does not exceed the