The Tax Laws Amendment (Research and Development) Bill 2013 received the Royal Assent on 5 March 2015. The Act is now cited as the Tax Laws Amendment (Research and Development) Act 2015, and is Act No 13 of 2015.
As introduced, the Bill proposed to amend the Income Tax Assessment Act 1997 to deny access to the research and development tax incentive for companies with aggregated assessable income of $20 billion or more for an income year; and the Industry Research and Development Act 1986 to provide that the conditions for eligibility of research and development activities conducted outside Australia would continue to operate as intended.
The Bill was amended in the Senate. The broad effect of the amendments is that the laws will apply retrospectively to 1 July 2014 (as opposed to 1 July 2013 as originally proposed), and that there will now be a reduced tax offset rate for companies with expenditure above $100 million. For expenditure above $100 million, companies will be able to claim a tax offset at the company tax rate.