This is the amount an R & D entity includes in their assessable income.

It is for R & D entities that produce either:
1.    Marketable products; or

2.    Products that can be applied for own use.

The Feedstock adjustment increases assessable income rather than decreasing the offset that might be received. The Feedstock adjustment is designed to recover some or the entire ‘incentive’ component of the R & D tax incentive offset received for feedstock expenditure, i.e. the amount that would be received above the general tax deduction.

The Feedstock adjustment will only be triggered if the R & D tax incentive is claimed or for one or more of the following:
1.    Expenditure on acquiring or producing feedstock inputs, including depreciation); or

2.    Expenditure on energy inputs directly into the processing or transformation of feedstock inputs.

The year in which the Feedstock adjustment applies is when:
1.    You sell / supply to another entity the feedstock output, or a marketable product derived from it; or

2.    You apply the output or product for your own use.

Refer s 355-465(1) Income Tax Assessment Act 1997

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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