Tax Laws Amendment (Research and Development) Act 2015 (Cth)
This is a compilation of the
The notes at the end of this compilation (the
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
For more information about any editorial changes made in this compilation, see the endnotes.
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
This Act may be cited as the
Tax Laws Amendment (Research and Development) Act 2015 .
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 5 March 2015 |
Schedule 1, Part 1 | The day this Act receives the Royal Assent. | 5 March 2015 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1 — Reduced tax offset rate for expenditure above $100 million
Before “the amount”, insert “all or part of”.
Repeal the note, substitute:
Note 2: This subsection can apply to an entitlement under any subsection of section 355‑100.
Repeal the heading, substitute:
If notional deductions are between $20,000 and $100 million
Add:
If notional deductions exceed $100 million
(3) Despite subsection (1), if the total of those amounts exceeds $100 million, the *R&D entity is instead entitled to a *tax offset for the income year equal to the sum of:
(a) that percentage of $100 million; and
(b) the product of the excess and the *corporate tax rate.
Note: The R&D entity may be able to reduce related amounts that would otherwise be:
(a) included in its assessable income because of a balancing, or feedstock, adjustment; or
(b) payable as extra income tax because of an R&D recoupment;
(see section 355‑720).
Add:
Amount to be included in assessable income may be reduced if notional deductions exceeded $100 million
(4) For the purposes of subsection (3), the partner may choose to reduce the adjusted section 40‑285 amount in that subsection if:
(a) subsection 355‑100(3) applied to the partner for an earlier income year or the event year (the
excess year ); and(b) the partner’s deductions for the excess year included deductions covered by paragraph (1)(c) of this section for the asset.
(5) Subsection 355‑720(3) applies to the partner as if a reduction under subsection (2) of that section for the present year included a reduction under subsection (4) of this section for the event year.
(6) The way the partner prepares its income tax returns is sufficient evidence of the making of a choice under subsection (4).
(7) A choice under subsection (4) is irrevocable.
Add:
(1) The object of this section is to prevent the portion of a *tax offset worked out using the *corporate tax rate being clawed back in later income years.
Note: This applies when the R&D entity’s notional deductions exceed $100 million (see subsection 355‑100(3)).
(2) For the purposes of working out a matter referred to in column 1 of an item of this table for an income year (the
present year ), the *R&D entity may choose to reduce the amount referred to in column 3 of that item if:
(a) subsection 355‑100(3) applied to the R&D entity for an earlier income year or the present year (the
excess year ); and(b) the R&D entity’s deductions for the excess year included deductions covered by a provision referred to in column 2 of that item.
1 | any amount to include in the *R&D entity’s assessable income for the present year because of a *balancing adjustment event happening for an asset it | (a) paragraph 40‑292(1)(b); or (b) paragraph 355‑315(1)(c); for the asset | its adjusted section 40‑285 amount (see subsection 40‑292(5) or 355‑315(3)) for the present year, the asset and the *balancing adjustment event |
2 | any amount of extra income tax payable by the *R&D entity under section 355‑435 for the present year | subsection 355‑450(1) | those excess year deductions |
3 | any amount to include in the *R&D entity’s assessable income for the present year under section 355‑465 | paragraph 355‑465(1)(b) | those excess year deductions |
Note 1: Item 2 is about R&D recoupments and item 3 is about feedstock adjustments.
Note 2: Reducing the amount in column 3 will reduce the amount in column 1.
(3) The *R&D entity’s circumstances may allow it to choose multiple reductions under subsection (2) for the present year. The total of any reductions cannot be more than the amount of its excess under subsection 355‑100(3) for the excess year.
(4) The way an *R&D entity prepares its income tax returns is sufficient evidence of the making of a choice under this section.
(5) A choice under this section is irrevocable.
(1) The Minister must cause a review of the operation of subsection 355‑100(3) (about the rate of tax offset when notional deductions exceed $100 million) to be undertaken as soon as possible after the fifth anniversary of the commencement of that subsection.
(2) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of receiving it.
Insert:
Amount to be included in assessable income may be reduced if notional deductions exceeded $100 million
(4A) For the purposes of subsection (4), the partner may choose to reduce the adjusted section 40‑285 amount in that subsection if:
(a) subsection 355‑100(3) of the
Income Tax Assessment Act 1997 applied to the partner for an earlier income year or the event year (theexcess year ); and(b) the partner’s deductions for the excess year included deductions covered by paragraph (1)(c) of this section for the asset.
(4B) Subsection 355‑720(3) of the
Income Tax Assessment Act 1997 applies to the partner as if a reduction under subsection (2) of that section for the present year included a reduction under subsection (4A) of this section for the event year.(4C) The way the partner prepares its income tax returns is sufficient evidence of the making of a choice under subsection (4A).
(4D) A choice under subsection (4A) is irrevocable.
Add:
355‑720 Certain related amounts may be reduced if notional deductions exceeded $100 million
Section 355‑720 of the
Income Tax Assessment Act 1997 also applies as if the table in subsection (1) of that section included the following item:
1A | any amount to include in the *R&D entity’s assessable income for the present year because of a *balancing adjustment event happening for an asset it |
(b) paragraph 355‑320(1)(c) of that Act | its adjusted section 40‑285 amount (see subsection 40‑292(3) or 355‑320(4) of that Act) for the present year, the asset and the *balancing adjustment event |
The amendments made by this Part apply in relation to an R&D entity’s assessments for income years commencing on or after 1 July 2014.
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
The abbreviation key sets out abbreviations that may be used in the endnotes.
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
The
If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.
A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.
If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.
ad = added or inserted | o = order(s) |
am = amended | Ord = Ordinance |
amdt = amendment | orig = original |
c = clause(s) | par = paragraph(s)/subparagraph(s) |
C[x] = Compilation No. x | /sub‑subparagraph(s) |
Ch = Chapter(s) | pres = present |
def = definition(s) | prev = previous |
Dict = Dictionary | (prev…) = previously |
disallowed = disallowed by Parliament | Pt = Part(s) |
Div = Division(s) | r = regulation(s)/rule(s) |
ed = editorial change | reloc = relocated |
exp = expires/expired or ceases/ceased to have | renum = renumbered |
effect | rep = repealed |
F = Federal Register of Legislation | rs = repealed and substituted |
gaz = gazette | s = section(s)/subsection(s) |
LA = | Sch = Schedule(s) |
LIA = | Sdiv = Subdivision(s) |
(md) = misdescribed amendment can be given | SLI = Select Legislative Instrument |
effect | SR = Statutory Rules |
(md not incorp) = misdescribed amendment | Sub‑Ch = Sub‑Chapter(s) |
cannot be given effect | SubPt = Subpart(s) |
mod = modified/modification | |
No. = Number(s) | commenced or to be commenced |
Tax Laws Amendment (Research and Development) Act 2015 | 13, 2015 | 5 Mar 2015 | 5 Mar 2015 (s 2(1) items 1, 2) | |
Treasury Laws Amendment (A Tax Plan for the COVID‑19 Economic Recovery) Act 2020 | 92, 2020 | 14 Oct 2020 | Sch 4 (items 12–14): 1 Jan 2021 (s 2(1) item 7) | Sch 4 (item 14) |
s 2......................................... | am No 92, 2020 |
Part 2..................................... | rep No 92, 2020 |
item 10................................... | rep No 92, 2020 |
item 11................................... | rep No 92, 2020 |
item 12................................... | rep No 92, 2020 |
item 13................................... | rep No 92, 2020 |
item 14................................... | rep No 92, 2020 |
item 15................................... | rep No 92, 2020 |
item 16................................... | rep No 92, 2020 |
item 17................................... | rep No 92, 2020 |
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