Item 34: [Research and development by apItem 34: [Research and development by approved R&D body]

#### Item 34: \[Research and development by approved R&D body\] (1) Goods for use by an approved R&D body (the exemption user) mainly in carrying out one or more of the following activities: (a) an eligible R&D activity that is carried out mainly for one or more of the following purposes: (i) creating new or improved goods that will be, or are likely to be, manufactured in Australia or to which a process or treatment will be, or is likely to be, applied in Australia by anyone as described in paragraph (a), (b) or (c) of the definition of manufacture‑related activity in exemption Item 18; (ii) creating a new or improved activity that will be, or is likely to be, carried out in Australia by anyone and would be covered by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35; (iii) acquiring new knowledge mainly for either of those purposes; (b) an activity carried out mainly for a purpose directly related to an activity covered by paragraph (a); (c) an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a) or (b); (d) an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (c). (2) Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1). (3) This Item does not cover: (a) generally‑excluded property (as defined by section 12); (b) a general‑purpose road vehicle, unless it is for use exclusively: (i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or (ii) in going between adjacent premises covered by subparagraph (i); or (iii) for a combination of both; (c) goods for use mainly in the development or duplication of computer programs that will be, or are likely to be, tax‑advantaged computer programs (not counting programs that will be, or are likely to be, mainly for use by the exemption user in carrying out an activity covered by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35). > Note: \[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).\] (4) For the purposes of this Item, a person is an approved R&D body at a particular time if any of the following conditions is met: (a) before that time, the person has entered into an agreement under section 28 or 31 of the Industry Research and Development Act 1986 for a project that is being carried on at that time; (b) the person is registered at that time under section 39F of that Act; (c) the person is registered at that time under section 39J or 39P of that Act for the year of income of the person in which that time happens. (5) In this Item, eligible R&D activity means a systematic, investigative or experimental activity that involves innovation or technical risk, but does not include: (a) market research, market testing or market development, or sales promotion (including consumer surveys); (b) management studies or efficiency surveys; (c) feasibility studies.