Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 33/34)
Character Range: 5158378–5161403

be determined by applying a systematic progression of work that:
 (i) is based on principles of established science; and
 (ii) proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and
 (b) that are conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services).
 (2) However, none of the following activities are core R&D activities:
 (a) market research, market testing or market development, or sales promotion (including consumer surveys);
 (b) prospecting, exploring or drilling for minerals or *petroleum for the purposes of one or more of the following:
 (i) discovering deposits;
 (ii) determining more precisely the location of deposits;
 (iii) determining the size or quality of deposits;
 (c) management studies or efficiency surveys;
 (d) research in social sciences, arts or humanities;
 (e) commercial, legal and administrative aspects of patenting, licensing or other activities;
 (f) activities associated with complying with statutory requirements or standards, including one or more of the following:
 (i) maintaining national standards;
 (ii) calibrating secondary standards;
 (iii) routine testing and analysis of materials, components, products, processes, soils, atmospheres and other things;
 (g) any activity related to the reproduction of a commercial product or process:
 (i) by a physical examination of an existing system; or
 (ii) from plans, blueprints, detailed specifications or publicly available information;
 (h) developing, modifying or customising computer software for the dominant purpose of use by any of the following entities for their internal administration (including the internal administration of their business functions):
 (i) the entity (the developer) for which the software is developed, modified or customised;
 (ii) an entity *connected with the developer;
 (iii) an *affiliate of the developer, or an entity of which the developer is an affiliate.

355‑30  Supporting R&D activities
 (1) Supporting R&D activities are activities directly related to *core R&D activities.
 (2) However, if an activity:
 (a) is an activity referred to in subsection 355‑25(2); or
 (b) produces goods or services; or
 (c) is directly related to producing goods or services;
the activity is a supporting R&D activity only if it is undertaken for the dominant purpose of supporting *core R&D activities.

355‑35  R&D entities
 (1) Each of the following is an R&D entity:
 (a) a body corporate incorporated under an *Australian law;
 (b) a body corporate incorporated under a *foreign law that is an Australian resident.
Note: Each of the above paragraphs extends to a body corporate acting in its capacity as trustee of a public trading trust (see subsection 102T(9) of the Income Tax Assessment Act 1936).
 (2) A body corporate incorporated under a *foreign law that:
 (a) is a resident of a foreign country for the purposes of an agreement in