24Definition of qualifying expenditure amount

24 Definition of qualifying expenditure amount

(1) A recipient body’s qualifying expenditure amount for a financial year is the sum of the following: (a) expenditure the body incurs during that year on research and development activities for a designated primary industry sector in relation to the body, where expenditure on those activities: (i) is for the benefit of that sector and the Australian community generally; and (ii) is in accordance with the body’s funding agreement; and (iii) if the body is a statutory recipient body—is in accordance with the body’s annual operational plan; (b) any carry‑over amount for the body for that year under subsection 23(5), multiplied by 2; (c) if applicable—the amount covered by subsection (2) of this section for that year.

Note 1: For research and development activity, see section 9.

Note 2: Paragraphs (a) and (c) cover expenditure the body incurs, regardless of the source of the money that is being spent. Examples of sources of money are payments by the Commonwealth under Division 2, payments by a State or Territory or an authority of a State or Territory under a contract with the recipient body and voluntary industry contributions.

Note 3: If there is more than one designated primary industry sector in relation to the body, paragraph (a) covers expenditure the body incurs during the financial year on research and development activities for each of those sectors.

Note: Example: To continue the example in subsection 23(5), assume for the 2026‑27 financial year the total of the amounts covered by paragraph (a) for the body is $1.5 million.

Note: There is a carry‑over amount of $200,000 for the body for the 2026‑27 financial year, so the amount covered by paragraph (b) is $400,000.

Note: Assume paragraph (c) is not applicable.

Note: The body’s qualifying expenditure amount for the 2026‑27 financial year is $1.9 million.

Additional amount for some statutory recipient bodies (2) For a statutory recipient body (except Wine Australia), the amount for the purposes of paragraph (1)(c) is expenditure the body incurs during that year in doing the following: (a) paying or discharging expenses, charges, obligations and liabilities incurred by the body in the performance of its functions or the exercise of its powers; (b) paying remuneration, allowances, fees or expenses payable under the Primary Industries Research and Development Act 1989. (3) Paragraph (2)(a) does not apply to expenditure on a matter covered by subsection 21(2), (4), (5) or (6). Exclusion (4) Paragraphs (1)(a) and (c) do not apply to expenditure of the following kinds: (a) a payment by the recipient body to the Commonwealth under section 16 or 17; (b) a payment by the recipient body to the Commonwealth that is a payment of a debt as mentioned in subsection 86(2); (c) expenditure of a kind prescribed by the rules for the purposes of this paragraph.