Commonwealth Consolidated Acts Commonwealth Consolidated ActsExpenditure on buildings, certain assets and interest
(1) Sections 355- 205 (deductions for R&D expenditure) and 355-480 (deductions for earlier year associate R&D expenditure) do not apply to the following expenditure:
(a) expenditure incurred to acquire or construct:
(i) a building or a part of a building; or
(ii) an extension, alteration or improvement to a building;
(b) expenditure included in the * cost of a tangible * depreciating asset for the purposes of Division 40 (as that Division applies as described in section 355- 310 or otherwise);
(c) expenditure incurred for interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936 ) payable to an entity.
Note 1: Expenditure covered by paragraph (a) may be deductible under Division 43 (capital works).
Note 2: The decline in value of an asset covered by paragraph (b) may be notionally deductible under section 355- 305.
Note 3: Expenditure covered by paragraph (c) may be deductible under section 8-1.
Expenditure on core technology
(2) Sections 355- 205 (deductions for R&D expenditure) and 355-480 (deductions for earlier year associate R&D expenditure) do not apply to expenditure incurred in acquiring, or in acquiring the right to use, technology wholly or partly for the purposes of one or more * R&D activities if:
(a) a purpose of the R&D activities was or is:
(i) to obtain new knowledge based on that technology; or
(ii) to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or
(b) the R&D activities were or are an extension, continuation, development or completion of the activities that produced that technology.
Table of sections
355-300 What this Subdivision is about
355-305 When notional deductions for decline in value arise
355-310 Notional application of Division 40
355-315 Balancing adjustments--assets only used for R&D activities