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    Deduction safeguards



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

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    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