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 an Australian film (producer offset)

SECTION 376-65   Film authority must issue certificate for an Australian film for the producer offset  

376-65(1)  
The * film authority must issue a certificate to a company for a * film in relation to the producer offset if the film authority is satisfied that:


(a) the company either carried out, or made the arrangements for the carrying out of, all the activities that were necessary for the * making of the film; and


(b) the conditions in subsections (2) to (6) are met.

Note:

The operation of paragraph (a) 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).

Type of film

376-65(2)  
The conditions in this subsection are that:


(a) the * film:


(i) has a significant Australian content (see section 376-70 ); or

(ii) has been made under an * arrangement entered into between the Commonwealth or an authority of the Commonwealth and a foreign country or an authority of the foreign country; and


(b) 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


(c) the film is:


(i) a * feature film; or

(ii) a single episode program; or

(iii) a series; or

(iv) a season of a series; or

(v) a short form animated film that is not covered by subparagraph (i), (ii), (iii) or (iv); and


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


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

(ii) 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

(iii) a film of a public event (other than a *documentary); or

(iv) a training film; or

(v) a computer game (within the meaning of the Classification (Publications, Films and Computer Games) Act 1995 ); or

(vi) a news or current affairs program; or

(vii) a reality program (other than a documentary).
Single episode programs

376-65(3)  
The conditions in this subsection are that, if the * film is a single episode program, it:


(a) is of a like nature to a * feature film; and


(b) is produced for:


(i) exhibition to the public 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


(c) if the program is a * documentary - is of at least one half of a commercial hour in duration; and


(d) if the program is not a documentary - is of at least one commercial hour in duration.

Short form animated film

376-65(4)  
The conditions in this subsection are that, if the * film is a short form animated film, it:


(a) is a program comprising one or more episodes which are produced wholly or principally for exhibition together, for a national market or national markets under a single title; and


(b) is predominantly made using cell, stop motion, digital or other animation; and


(c) contains a common theme or themes; and


(d) is of at least one quarter of a commercial hour in duration.

Series and seasons of series

376-65(5)  
The conditions in this subsection are that:


(a) if the application for the certificate is for a * film that is a series and not for a film that is a season of that series:


(i) the series is made up of at least 2 episodes; and

(ii) each episode of the series is at least one half of a commercial hour in duration, except where the film is predominantly made using cell, stop motion, digital or other animation, in which case each episode is at least one quarter of a commercial hour in duration; and

(iii) the series has a new creative concept (see section 376-70 ); and


(b) if the application for the certificate is for a film that is a season of a series:


(i) the season is made up of at least 2 episodes; and

(ii) each episode of the series is at least one half of a commercial hour in duration, except where the film is predominantly made using cell, stop motion, digital or other animation, in which case each episode is at least one quarter of a commercial hour in duration; and

(iii) the series has a new creative concept (see section 376-70 ).
Expenditure thresholds

376-65(6)  


The conditions in this subsection are as set out in the table.


Expenditure thresholds
Item For this type of film ... The total of the company ' s qualifying Australian production expenditure on the film (as determined by the film authority under section 376-75) is at least ... and the amount for the film worked out under subsection (7) is at least ...
1 A * feature film $500,000 not applicable
2 A single episode program other than a * documentary $500,000 not applicable
3 A single episode program that is a * documentary $500,000 $ 250,000
4 A short form animated film that is not a * feature film, a single episode program, a series or a season of a series $ 250,000 $ 1,000,000
5 A * film where the application for the certificate is for a series and not for a season of that series, and the series is not a * documentary $ 1 million $ 500,000
6 A * film where the application for the certificate is for a series and not for a season of that series, and the series is a * documentary $500,000 $ 250,000
7 A * film where the application for the certificate is for a season of a series, and the series is not a * documentary $ 1 million $ 500,000
8 A * film where the application for the certificate is for a season of a series, and the series is a * documentary $500,000 $ 250,000

376-65(7)  
The amount worked out for a * film under this subsection is the amount worked out 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 * film authority under section 376-75 ).


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