Australia R&D Tax Incentive (Income Tax Assessment Act 1997 Division 355) 355-446-475: ss 355-446 to 355-475 Make balancing adjustment clawbacks and catch-up deductions for R&D assets

When a balancing adjustment event happens for an asset (held by the entity or an R&D partnership) whose decline in value produced offsets, the entity works out a clawback amount where an amount is included in assessable income (for assets used only for R&D, capped at cost less adjustable value; for partly used assets, apportioned by R&D deductions to total decline in value) and includes the s 355-450 amount; where instead a deduction arises it works out a catch-up amount and may deduct the s 355-475 amount; each prior clawback or catch-up for the same offset year is taken into account.