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    Deduction safeguards

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Safeguard provisions are in place to ensure that Australian film industry incentives are not exploited. Two examples are:

    • Expenditure qualifying for the Division 10BA deduction is limited to amounts that the investor may lose if the film venture fails.
    • The Tax Office must be satisfied that the deductions claimed under Division 10B or Division 10BA have not been inflated as part of a non-arm's length transaction.

    Information to be shown in tax returns

    • Individual taxpayers claiming a deduction for an investment in a qualifying Australian film can show the deduction at item D11 on their 2004 tax return for individuals (supplementary section) (NAT 1371 - 6.2004).
    • Trustees are to show the amount at item 15 on their Trust tax return 2004 (NAT 0660 - 6.2004), clearly identifying it as a film industry incentive deduction.
    • Companies are to use Company tax return 2004 (NAT 0656 - 6.2004). The publication Company tax return 2004 instructions (NAT 0669 - 6.2004) has more information about which label to use in the return.
    Last modified: 12 Jan 2005QC 17476