Made a loss but less than the R&D spend

Company C spent $200,000 on its R&D activity in the year.

Overall the company made a loss of $100,000 during the year.

The ATO will allow the company an R&D rebate of 15% of the $200,000 spent on R&D, so $30,000.

It will also allow it to cash in its losses on the $100,000 loss, which at 30 cents in the dollar is $30,000.

So the total amount the ATO will refund to the company is $30,000 + $30,000 = $60,000.