Inserts for
Tax Laws Amendment (2013 Measures No. 2) Bill 2013: Targeting R&D tax incentive to small and medium businesses

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  			
2.  Schedule ??	The day this Act receives the Royal Assent.		
3.  			
Schedule ??—Targeting R&D tax incentive to small and medium businesses
  
Income Tax Assessment Act 1997
1  After section 355‑100
Insert:
355‑103  Exception for large businesses
	(1)	Despite section 355‑100, an *R&D entity is not entitled under that section to a *tax offset for an income year if its amount worked out under subsection (2) for the income year is $20 billion or more.
R&D entity’s aggregated assessable income
	(2)	The *R&D entity’s amount for the income year is the sum of:
	(a)	its assessable income for the income year; and
	(b)	the assessable income for the income year of any entity that is *connected with the R&D entity at any time during the income year; and
	(c)	the assessable income for the income year of any entity that is an *affiliate of the R&D entity at any time during the income year; and
	(d)	the assessable income for the income year of any entity of which the R&D entity is an affiliate at any time during the income year.
2  Application of amendment
The amendment made by this Schedule applies in relation to an R&D entity’s assessments for income years commencing on or after 1 July 2013.