6193

 

2010

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Tax Laws Amendment (Research and Development) Bill 2010

 

 

(Amendments to be moved by Senator Milne on behalf of the Australian Greens in committee of the whole)

(1)     Schedule  1 , item  1 , page 7 (lines 16 to 21) , omit subsection 355-30 ( 2 ), substitute:

             (2)  However, if:

                     (a)  an activity:

                              (i)  is an activity referred to in subsection 355-25(2); or

                             (ii)  produces goods or services; or

                            (iii)  is directly related to producing goods or services; and

                     (b)  the activity is conducted during an income year for which an * R &D entity’s * aggregated turnover is $20 million or more;

the activity is a supporting R &D activity for the R &D entity for the income year only if the activity is conducted during the income year for the dominant purpose of supporting * core R &D activities.

Note 1:       The R &D entity will only be able to be registered under paragraph 27A(1)(b) of the Industry Research and Development Act 1986 for the activity for the income year if the activity is conducted during the year for the dominant purpose of supporting core R &D activities.

Note 2:       The R &D entity will only be able to deduct under section 355-205 expenditure it incurs during an income year on the activity if the R &D entity is registered for the activity for an income year, and the activity is an activity to which section 355-210 applies (see paragraph 355-205(1)(a)).

Note 3:       Similarly, the R &D entity will only be able to deduct under section 355-305 an amount equal to the decline in value over an income year of a depreciating asset used for the activity if the R &D entity is registered for the activity for that year, and the activity is an activity to which section 355-210 applies (see paragraph 355-305(1)(a)).

Note 4:       For notes 2 and 3, the activity will be an activity to which section 355-210 applies if, for example, the activity is conducted for the R &D entity solely within Australia (see paragraph 355-210(1)(a)).

[supporting R &D activities]

(2)     Schedule 1, item 1, page 36 (line 3), after “value)”, insert “, 355-30 (supporting R &D activities)”.

[supporting R &D activities]

(3)     Schedule 3, item 105, page 110 (lines 16 and 17), omit “section 355-100 (tax offsets for R&D)”, substitute “Division 355 (Research and Development)”.

[supporting R &D activities]

(4)     Schedule 3, item 105, page 110 (lines 32 and 33), omit “section 355-100 (tax offsets for R&D)”, substitute “Division 355 (Research and Development)”.

[supporting R &D activities]

(5)     Schedule 3, item 105, page 111 (line 4), omit “section 355-100”, substitute “Division 355”.

[supporting R &D activities]

(6)     Schedule  3 , item  105 , page 111 (line 7) , omit “ section 355-100 ”, substitute “ Division 355 ”.

[supporting R &D activities]

 

6193-EM

 

 

 

Tax Laws Amendment (Research and Development) Bill 2010

 

 

(Request to be moved by Senator Milne on behalf of the Australian Greens in committee of the whole)

 

 

Statement pursuant to the order of

the Senate of 26 June 2000

 

 

 

 

Amendment (1)

The effect of amendment (1) will be to expand the class of activities that can qualify for a refundable tax offset, which would be met from the standing appropriation in section 16 of the Taxation Administration Act 1953 , and the amendment is therefore presented as a request .

 

 

 

 

 

 

 

Statement by the Clerk of the Senate pursuant

to the order of the Senate of 26 June 2000

 

 

 

The Senate has long accepted that an amendment should take the form of a request if it would have the effect of increasing expenditure under a standing appropriation. If it is correct that this amendment requires the Commissioner of Taxation to refund amounts payable from a standing appropriation, it is in accordance with the precedents of the Senate that the amendment be moved as a request.