• Australian film industry incentives 2003-04

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    Information about tax deductions for investors in Australian films 2003-04

    If you invest in the Australian film industry, you may be eligible for a special tax deduction for capital expenditure incurred in acquiring an interest in the copyright of an Australian film. As an investor, you may be able to claim one of two types of deductions:

    1. Division 10B of Part III of the Income Tax Assessment Act 1936 (ITAA 1936), which gives investors a deduction, spread over two years, for capital contributions used to acquire rights in or under copyrights relating to an 'Australian film', and
    2. Division 10BA of Part III of the ITAA 1936, which gives investors a 100% deduction (in the year the contract is entered into) for capital expenditure used to produce a 'qualifying Australian film' and, as a consequence, they acquire an interest in the initial copyright of the film.

    Division 10B applies to both residents and non-residents, while Division 10BA applies to residents only. A taxpayer can elect that Division 10BA not apply to their project and apply Division 10B.

    Last modified: 12 Jan 2005QC 17476