INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 376 - Films generally (tax offsets for Australian production expenditure)  

Subdivision 376-B - Tax offsets for Australian expenditure in making a film  

Refundable tax offset for Australian expenditure in making a film (location offset)

SECTION 376-20   Minister must issue certificate for a film for the location offset  

376-20(1)  
The * Arts Minister must issue a certificate to a company for a * film in relation to the location offset if the Minister is satisfied that the conditions in subsections (2), (3) and (5) are met. Type of film

376-20(2)  
The conditions in this subsection are that:


(a) the * film was produced for:


(i) exhibition to the public in cinemas or by way of television broadcasting (including broadcasting by way of the delivery of a television program by a broadcasting service within the meaning of the Broadcasting Services Act 1992 ); or

(ii) distribution to the public as a video recording (whether on video tapes, digital video disks or otherwise); and


(b) the film is:


(i) a * feature film or a film of a like nature; or

(ii) a mini-series of television drama; or

(iii) a television series that is not covered by subparagraph (i) or (ii); and


(c) the film is not, or is not to a substantial extent:


(i) if the film is covered by subparagraph (b)(i) or (ii) - a * documentary; or

(ii) a film for exhibition as an advertising program or a commercial; or

(iii) a film for exhibition as a discussion program, a quiz program, game show, a panel program, a variety program or a program of a like nature; or

(iv) a film of a public event; or

(v) if the film is covered by subparagraph (b)(i) or (ii) - a film forming part of a drama program series that is, or is intended to be, of a continuing nature; or

(vi) a training film; or

(vii) a computer game (within the meaning of the Classification (Publications, Films and Computer Games) Act 1995 ).
Television series

376-20(3)  
The conditions in this subsection are that:


(a) if the * film is a television series that is not covered by subparagraph (2)(b)(i) or (ii), it is made up of 2 or more episodes that:


(i) are produced wholly or principally for exhibition to the public on television under a single title; and

(ii) contain a common theme or themes; and

(iii) contain dramatic elements that form a narrative structure; and

(iv) are produced wholly or principally for exhibition together, for a national market or national markets; and
Note:

A documentary can be a television series.


(b) if the film is a television series that is not covered by subparagraph (2)(b)(i) or (ii):


(i) for a television series that is predominantly a digital animation or other animation - the * making of the television series (other than a pilot episode, if any, or activities mentioned in paragraph 376-125(3)(a) ) takes place within a period of not longer than 36 months; or

(ii) otherwise - all principal photography for the television series (other than a pilot episode, if any) takes place within a period of not longer than 12 months; and


(c) if the film is a television series that is not covered by subparagraph (2)(b)(i) or (ii) - the amount worked out for the film under subsection (6) is at least $ 1 million.

376-20(4)  
To avoid doubt, and without limiting subparagraph (3)(a)(iii), a * film satisfies the requirement in that subparagraph if:


(a) the sole or dominant purpose of the film is to depict actual events, people or situations; and


(b) the film depicts those events, people or situations in a dramatic or entertaining way, with a heavy emphasis on dramatic impact or entertainment value. Conditions relating to expenditure thresholds

376-20(5)  
The conditions in this subsection are that:


(a) the total of the company ' s * qualifying Australian production expenditure on the * film (as determined by the * Arts Minister under section 376-30 ) is at least $ 15 million; and


(b) (Repealed by No 61 of 2011)


(c) the company either carried out, or made the arrangements for the carrying out of, all the activities in Australia that were necessary for the making of the film.

Note:

The operation of paragraph (c) is affected by paragraph 376-180(1)(d) (which deals with the situation where one company takes over the making of a film from another company).

376-20(6)  
For the purposes of paragraph (3)(c), the amount for a * film is worked out by using the formula:


Total QAPE
Duration of film in hours

where:

duration of film in hours
means the total length of the * film, measured in hours.

total QAPE
means the total of the company ' s * qualifying Australian production expenditure on the * film (as determined by the * Arts Minister under section 376-30 ).


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