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A Bill for an Act to amend the law relating to taxation, and for related purposes
Administered by: Treasury
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 15 Nov 2013
Introduced HR 14 Nov 2013
Table of contents.

2013

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

Tax Laws Amendment (Research and Development) Bill 2013

 

No.      , 2013

 

(Treasury)

 

 

 

A Bill for an Act to amend the law relating to taxation, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 2

Schedule 1—Targeting R&D tax incentive to small and medium businesses        3

Income Tax Assessment Act 1997                                                                              3

Industry Research and Development Act 1986                                                      4

 

 


A Bill for an Act to amend the law relating to taxation, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Tax Laws Amendment (Research and Development) Act 2013.

2  Commencement

                   This Act commences on the day this Act receives the Royal Assent.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1Targeting R&D tax incentive to small and medium businesses

  

Income Tax Assessment Act 1997

1  After section 355‑100

Insert:

355‑103  Exception for large businesses

             (1)  Despite section 355‑100, an *R&D entity is not entitled under that section to a *tax offset for an income year if its amount worked out under subsection (2) for the income year is $20 billion or more.

R&D entity’s aggregated assessable income

             (2)  The *R&D entity’s amount for the income year is the sum of:

                     (a)  its assessable income for the income year; and

                     (b)  the assessable income for the income year of any entity that is *connected with the R&D entity at any time during the income year; and

                     (c)  the assessable income for the income year of any entity that is an *affiliate of the R&D entity at any time during the income year; and

                     (d)  the assessable income for the income year of any entity of which the R&D entity is an affiliate at any time during the income year.

             (3)  However, for the purposes of this section, disregard the assessable income of an entity that is only *connected with the *R&D entity because both of them are controlled by the same *Australian government agency.

             (4)  In working out whether an entity is *connected with the R&D entity for the purposes of this section:

                     (a)  treat references in section 328‑125 to at least 40% as references to more than 50%; and

                     (b)  disregard subsection 328‑125(6).

Industry Research and Development Act 1986

2  At the end of paragraph 28D(2)(b)

Add:

                     ; or (iii)  would be reasonably likely to be registered under section 27A for the R&D entity for an income year if subsection 355‑103(1) of the Income Tax Assessment Act 1997 were disregarded.

Note:          Subsection 355‑103(1) of the Income Tax Assessment Act 1997 prevents large businesses from being entitled to the R&D tax offset.

3  Application of amendments

The amendments made by this Schedule apply in relation to an R&D entity’s assessments for income years commencing on or after 1 July 2013.