Tax Rulings

TR 2021/5: Income tax: research and development tax offsets – the ‘at risk’ rule

This tax ruling relates to preventing R&D entities from claiming expenditure that is classified as not ‘at risk’, in that the R&D entity does not bear the financial burden of carrying out the R&D activities. This applies when the R&D entity receives or expects to receive any benefit or payment as a direct or indirect result of undertaking the R&D, regardless of its outcome. This ruling aims to provide clarity when ‘at risk’ rules apply, particularly in contracts for products or services involving R&D activities.