Commonwealth Consolidated Acts

INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986 - SECT 39AA

             (1)  The object of this Part is to complement the tax incentive provided by sections 73B, 73BA, 73I, 73QA and 73QB of the Income Tax Assessment Act 1936 by giving the Board the role to determine whether eligible companies satisfy the requirements for the incentive.

             (2)  The object of sections 73B, 73BA, 73I, 73QA and 73QB of the Income Tax Assessment Act 1936 is to provide a tax incentive, in the form of a deduction, to encourage research and development activities in Australia and make eligible companies more internationally competitive by:

                     (a)  encouraging the development by eligible companies of innovative products, processes and services; and

                     (b)  increasing investment by eligible companies in defined research and development activities; and

                     (c)  promoting the technological advancement of eligible companies through a focus on innovation or high technical risk in defined research and development activities; and

                     (d)  encouraging the use by eligible companies of strategic research and development planning; and

                     (e)  creating an environment that is conducive to increased commercialisation of new processes and product technologies developed by eligible companies.

The benefits of the tax incentive are targeted by being limited to particular expenditure on certain defined activities.