View full documentView full document Previous section | Next section
Senate

Income Tax Assessment Amendment Bill 1981

Income Tax Assessment Amendment Act 1981

Supplementary Explanatory Memorandum

circulated by authority of the minister for finance, senator the hon. dame margaret guilfoyle d.b.e.

Introductory note

This supplementary memorandum, which is to be read in conjunction with the Explanatory Memorandum on the Bill as originally introduced, explains the operation of amendments made to the Bill in the House of Representatives.

The principal effect of the amendments is to alter the time at which deductions conferred under the new film incentive scheme are to become available in relation to investments in films under contractual arrangements entered into on or before 27 May 1981, the day on which the Bill was introduced into the House.

Under the Bill as introduced into the House, deductions were in all instances to become available when the relevant film was completed and used to produce income. By virtue of the amendments, this basis of deduction is to apply for expenditure under contracts entered into on or after 28 May 1981.

Expenditure under contracts entered into on or after 1 October 1980, the date of commencement of the scheme, and on or before 27 May 1981 is to qualify for deduction in the year of expenditure, on the basis outlined in the ministerial statement of 18 December 1980.

It is not necessary that the amount contracted during this period be actually expended on or before 27 May 1981 for a deduction to be available on this basis. Thus, for example, an amount committed under a contract entered into during the transitional period, but which is not actually outlaid by the investor until the 1981-82 income year, will, on the basis set out in the December statement, qualify for deduction in that year irrespective of when the film is completed and marketed. If outlaid before the current income year comes to an end, of course, the deduction would be available in the assessment of 1980-81 income.

The following notes relate to those provisions proposed to be inserted in the Income Tax Assessment Act 1936 (the "Principal Act") by the Bill and that reflect the amendments made to the Bill in the House.


View full documentView full documentBack to top