10Eligible R&D goods

#### 10 Eligible R&D goods (1) In this Schedule: > eligible R&D goods means goods where all of the following conditions are satisfied: (a) the goods are for use by a person, being: (i) a goods producer; or (ii) an eligible R&D entity; (b) the goods are for use mainly in carrying out one or more of the following: (i) an eligible R&D activity; (ii) an ancillary activity in relation to an eligible R&D activity of the person; (c) in the case of a general purpose road vehicle, or parts for such a vehicle—the vehicle is for use exclusively within premises that are: (i) owned, leased or controlled by the person; and (ii) used, or for use, by the person mainly in carrying out activities covered by subparagraph (b)(i) or (ii); (d) the goods are not software-creation goods in relation to the person. (2) For the purposes of this clause, a person is an eligible R&D entity at a particular time if: (a) the person has, as at that time, entered into an agreement under section 28 or 31 of the Industry Research and Development Act 1986 in respect of a project that is being carried out at that time; or (b) as at that time: (i) the Industry Research and Development Board has registered the person under section 39F of that Act; and (ii) that registration is in force; or (c) as at that time, the Industry Research and Development Board has registered the person under section 39J of that Act, or registered the person jointly with another person or persons under section 39P of that Act, in respect of the year of income of the person in which that time occurs. (3) In this clause: > eligible process means a process made up mainly of activities where, if goods were for use exclusively to perform one or more of those activities, the goods would be: (a) eligible business goods (other than eligible R&D goods); or (b) aids to manufacture; or (c) auxiliaries to aids to manufacture. > eligible R&D activity means any of the following: (a) systematic, investigative or experimental activities that involve innovation or technical risk and are carried out mainly for one or more of the following purposes: (i) creating new or improved goods that are, or are likely, to be produced, manufactured, processed or treated in Australia; (ii) creating new or improved eligible processes for use, or likely use, in Australia; (iii) acquiring new knowledge mainly for the purpose of creating such new or improved goods or processes; (b) other activities that are carried out mainly for a purpose directly related to the carrying out of an activity covered by paragraph (a); but does not include any of the following activities: (c) market research, market testing or market development, or sales promotion (including consumer surveys); (d) prospecting, exploring or drilling for minerals or petroleum; (e) making cosmetic modifications or stylistic changes to products, processes or production methods; (f) management studies or efficiency surveys; (g) research in social sciences, arts or humanities; (h) feasibility studies; (i) activities the main purpose of which is: (i) creating new or improved services; or (ii) acquiring new knowledge mainly for the purpose of creating new or improved services; (j) quality control; (k) activities that are carried out mainly for a purpose directly related to the carrying out of an activity covered by any of paragraphs (c) to (j). > software-creation goods, in relation to a person, means goods that: (a) are for use mainly in making, altering or reproducing computer programs (other than programs for use by the person mainly in carrying out an eligible process); and (b) are not for use mainly in connection with the embodying of computer programs in microchips.