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INCOME TAX ASSESSMENT AMENDMENT (RESEARCH AND DEVELOPMENT) BILL 1986

Order of the Day read for the adjourned debate on the motion of the Minister for Industry, Technology and Commerce (Senator Button)-That this Bill be now read a second time.

Question-put and passed.

Bill read a second time.

The Senate, according to Order, resolved itself into Committee for the consideration of the Bill.

In the Committee

Bill, by leave, taken as a whole.

Explanatory Memorandum: Senator Button tabled an Explanatory Memorandum relating to the Income Tax Assessment Amendment (Research and Development) Bill 1986.

On the motion of Senator Button the following amendments were, by leave, taken together and agreed to:

Page 4, clause 7, proposed new sub-section 73b (1), definition of ""contracted expenditure'', line 25, after ""institute'' (first occurring), insert ""or the Coal Research Trust Account''.

Page 4, clause 7, proposed new sub-section 73b (1), definition of ""contracted expenditure'', line 25, after ""performing,'', insert ""or that trust account funding the performance of,''.

Page 11, clause 7, proposed new sub-section 73b (21), line 31, after ""deduction'', insert ""for depreciation''.

Page 11, clause 7, proposed new sub-section 73b (21), line 32, leave out ""under a provision of this Act other than this section''.

Page 12, clause 7, proposed new sub-paragraph 73b (21) (b) (ii), line 6, leave out ""other'', insert ""first-mentioned''.

Page 12, clause 7, proposed new sub-section 73b (22), line 11, after ""deduction'', insert ""for depreciation''.

Page 12, clause 7, proposed new sub-section 73b (22), line 12, leave out ""under a provision of this Act other than this section''.

Senator Vigor, by leave, moved the following amendments together:

Page 4, clause 7, proposed new sub-section 73b (1), definition of ""deduction acceleration factor'', line 34, leave out ""$20,000'', insert ""$2,000''.

Page 4, clause 7, proposed new sub-section 73b (1), definition of ""deduction acceleration factor'', lines 35 to 43, leave out paragraphs (a) and (b), insert ""1.5''.

Debate ensued.

Question-That the amendments be agreed to-put and negatived.

Senator Vigor, by leave, moved the following further amendments together:

Page 5, clause 7, proposed new sub-section 73b (1), definition of ""pilot plant'', lines 10 to 14, leave out the definition, insert the following definition:

"" "pilot plant' means an experimental model of plant for use primarily in research and development activites;''.

Page 5, clause 7, proposed new sub-section 73b (1), definition of ""plant expenditure'', line 23, leave out ""exclusively''.

Page 5, clause 7, proposed new sub-paragraph 73b (1) (a) (ii), definition of ""research and development activities'', line 29, after ""innovation'', insert "", technology transfer into Australia''.

Page 5, clause 7, proposed new sub-sub-paragraph 73b (1) (a) (iii) (b), definition of ""research and development activities'', line 35, after ""processes'', insert "", systems''.

Page 10, clause 7, proposed new paragraph 73b (14) (b), lines 21 and 22, leave out the paragraph.

Page 10, clause 7, proposed new paragraphs 73b (15) (a) and (b), lines 32 to 38, leave out the paragraphs, insert ""one-third of the amount of that qualifying plant expenditure''.

Page 12, clause 7, proposed new sub-paragraphs 73b (23) (e) (i) and (ii), lines 35 to 45, leave out the sub-paragraphs, insert ""the amount ascertained by multiplying the amount by which that written-down value exceeds that consideration receivable by the deduction acceleration factor in relation to the company in relation to the year of income''.

Page 17, clause 7, proposed new paragraph 73b (31) (a), line 38, after ""exclusively'', insert ""or in part''.

Page 18, clause 7, after proposed new paragraph 73b (31) (d), insert the following new paragraph:

""(da) the extent to which the plant, building or extension is used for research and development activities; and''.

Page 18, clause 7, proposed new paragraphs 73b (33) (a) and (b), lines 41 and 42, leave out the paragraphs, insert ""in a manner that is for the benefit of the Australian economy.''.

Debate ensued.

Question-That the amendments be agreed to-put and negatived.

Senator Vigor, by leave, moved the following further amendments together:

Page 8, clause 7, proposed new paragraph 73b (2) (a), line 3, leave out ""market research, market testing or market development, or''.

Page 8, clause 7, proposed new paragraph 73b (2) (b), line 5, leave out the paragraph.

Page 8, clause 7, proposed new paragraph 73b (2) (d), lines 9 and 10, leave out ""or stylistic changes'' and ""processes or production methods''.

Page 8, clause 7, proposed new paragraph 73b (2) (e), line 11, leave out the paragraph.

Page 8, clause 7, proposed new paragraph 73b (2) (g), lines 13 and 14, leave out the paragraph.

Debate ensued.

Question-That the amendments be agreed to-put and negatived.

Bill, as amended, agreed to.

Bill to be reported with amendments.

The Acting Deputy-President (Senator Elstob) resumed the Chair; and the Chairman of Committees (Senator Hamer) reported accordingly.

On the motion of Senator Button the Report from the Committee was adopted, and the Bill read a third time.