Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 3/11)
Character Range: 5231617–5234389

deduct an amount for an income year for an asset; and
 (b) the applicable *R&D partnership receives an amount as a *recoupment of any or all of the R&D partnership's expenditure included in the *cost of the asset for the purposes of the application of Division 40 as described in paragraph 355‑520(1)(d);
the partner is taken, for the purposes of Subdivisions 20‑A and 355‑G:
 (c) to have incurred the partner's proportion of that expenditure when the R&D partnership incurred that expenditure; and
 (d) to have received the partner's proportion of the recoupment when the R&D partnership received the recoupment.

355‑545  Relevance for net income, and losses, of the R&D partnership
  For an *R&D entity that is a partner of an *R&D partnership, none of the following:
 (a) any expenditure the R&D entity is taken to have incurred because of this Subdivision;
 (b) any amount the R&D entity can deduct under this Subdivision;
 (c) any *recoupment the R&D entity is taken to have received because of this Subdivision;
are to be taken into account in determining the *net income of the R&D partnership, or any *partnership loss of the R&D partnership, for an income year.

Subdivision 355‑K—Application to Cooperative Research Centres

Table of sections
355‑580 When notional deductions for CRC contributions arise

355‑580  When notional deductions for CRC contributions arise

Monetary contributions are deductible
 (1) An *R&D entity can deduct for an income year expenditure it incurs during that year to the extent that:
 (a) the expenditure is in the form of monetary contributions under the *CRC program; and
 (b) the contributions have been or will be spent under the CRC program on one or more *R&D activities for which the R&D entity is registered under section 27A of the Industry Research and Development Act 1986 for an income year.
Note 1: The R&D activities will need to be conducted during the income year the R&D entity is registered for those activities (see sections 27A and 27J of the Industry Research and Development Act 1986).
Note 2: Expenditure incurred in income years starting on or after 1 July 2011 may be deductible for activities registered for income years starting before 1 July 2011 (see section 355‑200 of the Income Tax (Transitional Provisions) Act 1997).
 (2) Subsection (1) does not apply to expenditure to the extent that it is incurred out of Commonwealth funding.

No other deductions arise for monetary contributions etc.
 (3) Neither:
 (a) a contribution an *R&D entity can deduct under subsection (1); nor
 (b) expenditure incurred under the *CRC program, to the extent that the expenditure is incurred out of:
 (i) a contribution an R&D entity can deduct under subsection (1); or
 (ii) Commonwealth funding;
can be deducted by