Commonwealth Numbered Acts

INDUSTRIAL RESEARCH AND DEVELOPMENT INCENTIVES AMENDMENT ACT 1981 No. 44 of 1981 - SECT 3

3. (1) Section 4 of the Principal Act is amended -

(a) by omitting from the definition of "eligible expenditure" in sub-section
(1) "in respect of which the company has eligible contract expenditure in
excess of $1,500, or eligible salary expenditure, or both"; and

   (b)  by omitting from the definition of "eligible salary expenditure" in
        sub-section (1) all the words after "engaged in by" (first occurring)
        and substituting "those employees during that period or those
        periods".

(2) Section 4 of the Principal Act is amended -

(a) by omitting "and" from paragraph (a) of the definition of "Australia" in
sub-section (1);

(b) by adding at the end of the definition of "Australia" in sub-section (1)
the following word and paragraph:



"; and (c) in relation to construction operations - includes such areas of the
sea or seabed adjacent to Australia as are prescribed;";

   (c)  by inserting after the definition of "concentration" in sub-section
        (1) the following definition:



"'construction operations' means operations relating to, and carried out at
the site of, the construction of a building;";

   (d)  by omitting from sub-section (1) the definition of "eligible company"
        and substituting the following definition:



"'eligible company' means -

   (a)  a company (being a body corporate) that carries on, or proposes to
        carry on, the manufacture of goods, mining operations, construction
        operations or software production in Australia; or

   (b)  a recognized company that carries on, or proposes to carry on, the
        manufacture of goods, mining operations, construction operations or
        software production in Australia;";

   (e)  by inserting in the definition of "eligible expenditure" in
        sub-section (1) ", less any part of that expenditure that is
        expenditure on ineligible
software research and development" after "year" (last occurring);

   (f)  by inserting after the definition of "eligible salary expenditure" in
        sub-section (1) the following definition:



"'eligible software research and development', in relation to a company, means
industrial research and development by the company that relates to the
production, or proposed production, of software for computers or for similar
equipment that are, or is -

   (a)  manufactured, or proposed to be manufactured, in Australia by that
        company or by another company that, by virtue of section 5, is deemed
        to be related to that company;

   (b)  used, or proposed to be used, in the manufacture in Australia of goods
        by that company or by another company that, by virtue of section 5, is
        deemed to be related to that company;

   (c)  used, or proposed to be used, in mining operations in Australia of
        that company or of another company that, by virtue of section 5, is
        deemed to be related to that company; or

   (d)  used, or proposed to be used, in construction operations in Australia
        of that company or of another company that, by virtue of section 5, is
        deemed to be related to that company;";

   (g)  by adding at the end of the definition of "industrial research and
        development" in sub-section (1):



", but does not include experimentation or analysis in relation to software
production, or proposed software production, the object of which is -

   (c)  to acquire knowledge that may be of use for the purpose of devising or
        developing improved material products; or

   (d)  to apply knowledge for the purpose referred to in paragraph (c);";

   (h)  by inserting after the definition of "industrial research and
        development" in sub-section (1) the following definitions:



"'ineligible software research and development', in relation to a company,
means industrial research and development by the company that -

   (a)  relates to software production or proposed software production; and

   (b)  is not eligible software research and development;



"'material products' includes software for computers or for similar
equipment;";

   (j)  by inserting after the definition of "prototype" in sub-section (1)
        the following definition:



"'recognized company' means a company that, at the relevant time, is a
recognized company for the purposes of this Act by virtue of a declaration
under paragraph 6 (1) (aa);";

   (k)  by inserting after the definition of "salary or wages" in sub-section
        (1) the following definition:



"'software production' means the production of software for computers or for
similar equipment;";

   (m)  by omitting sub-section (5) and substituting the following
        sub-section:



"(5) A reference in this Act to industrial research and development, in
relation to an eligible company, shall be read as a reference to such, and
only to such, industrial research and development as is -

   (a)  performed by or for the company directly in relation to -

        (i)    the manufacture, or proposed manufacture, in Australia of goods
               by the company or by another company that, by virtue of section
               5, is deemed to be related to the company;

        (ii)   the manufacture, or proposed manufacture, in Australia of goods
               by another person, being goods that are directly related to the
               sale or manufacture of goods manufactured, or proposed to be
               manufactured, in Australia by the company or by another company
               that, by virtue of section 5, is deemed to be related to the
               company;

        (iii)  mining operations, or proposed mining operations, in Australia
               of the company or of another company that, by virtue of section
               5, is deemed to be related to the company;

        (iv)   construction operations, or proposed construction operations,
               in Australia of the company or of another company that, by
               virtue of section 5, is deemed to be related to the company; or

        (v)    software production, or proposed software production, in
               Australia by the company or by another company that, by virtue
               of section 5, is deemed to be related to the company; or

   (b)  performed by the company, acting as a research organization, directly
        in relation to -

        (i)    the manufacture, or proposed manufacture, in Australia, of
               goods by another person;

        (ii)   mining operations, or proposed mining operations, in Australia
               of another person;

        (iii)  construction operations, or proposed construction operations,
               in Australia of another person; or

        (iv)   software production, or proposed software production, in
               Australia by another person."; and

   (n)  by omitting sub-section (9) and substituting the following
        sub-section:



"(9) A company shall be deemed for the purposes of this Act to have carried on
the manufacture of goods, construction operations or software production in a
year if, under a contract entered into between the company and any other
person, that other person manufactured goods, carried on construction
operations or carried on software production, as the case may be, for the
company in that year.".
(3) Section 4 of the Principal Act is amended by omitting "4" from the
definition of "grant year" in sub-section (1) and substituting "9".

(4) Section 4 of the Principal Act is amended -

(a) by inserting after the definition of "Advisory Committee" in subsection
(1) the following definition:



"'appointed member' means the Chairman or a member referred to in paragraph 9
(1) (c);";and

   (b)  by inserting after the definition of "technical information" in
        sub-section (1) the following definition:



"'Technical Standing Committee' means the Technical Standing Committee
established by section 19A;".