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  • What deductions can I claim for investing in Australian films?

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    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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    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 a taxpayer, you may be able to claim a deduction under either:

    1. Division 10B of Part III of the Income Tax Assessment Act 1936 (ITAA 1936), which gives investors a deduction, normally spread over two years, for capital contributions used to acquire rights in or under copyrights relating to an 'Australian film', or
    2. Division 10BA of Part III of ITAA 1936, which gives investors a 100% deduction for capital expenditure used to produce a 'qualifying Australian film' where, 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 instead.

    Taxpayers may also be able to claim deductions under Subdivision 375-H of the Income Tax Assessment Act 1997 (ITAA 1997) for amounts paid for shares in a film licensed investment company.

    Last modified: 13 Mar 2020QC 18463