Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 1/34)
Character Range: 5338406–5341511

7                                               Expenditure incurred in delivering or distributing the film
                                                expenditure incurred by the applicant company in delivering or distributing the film prior to the end of the income year in which the *film is complete to the extent to which it is incurred for, or reasonably attributable to, any of the following:
                                                (a) acquiring Australian classification certificates;
                                                (b) sound mix mastering licenses;
                                                (c) re‑versioning the film in Australia;
                                                (d) freight services provided by a company in Australia for delivery of contracted deliverables in relation to the film;
                                                (e) storing the film in a film vault in Australia.

 (3) General business overheads of the company are covered by item 1 of the table in subsection (2) only to the extent to which they do not exceed the lesser of:
 (a) 5% of the total of all the company's *total film expenditure on the *film; and
 (b) $500,000.
 (3A) Expenditure incurred for the purchase of services is not covered by item 4 of the table in subsection (2) if the services are, to any extent, performed by an individual who is not an Australian resident.

Expenditure that is not qualifying Australian production expenditure
 (4) For the purposes of the producer offset, the following expenditure of a company is not qualifying Australian production expenditure of a company on a *film:
 (a) expenditure on the film that is paid for with *development assistance received from any of the following bodies:
 (ii) Film Australia Limited;
 (iii) the Australian Film Commission;
 (iv) the Australian Film, Television and Radio School;
 (v) Screen Australia;
  unless the amount or value of the assistance has been repaid;
 (b) subject to subsection (4A), the following expenditure:
 (i) *development expenditure on the film;
 (ii) remuneration provided to the principal director, producers and principal cast associated with the film;
  to the extent that such expenditure comprises greater than 20% of the company's *total film expenditure on the film;
 (c) for a series other than a drama series, or a season of a series other than a drama series—expenditure on an episode beyond the episode in which the 65th commercial hour of the series is reached.
 (4A) Paragraph (4)(b) does not apply to a *film that is a *documentary.
 (5) In applying paragraph (4)(c), episodes completed before 1 July 2011 count towards the limit in that paragraph.
 (6) Total film expenditure on a film means:
 (a) expenditure covered by sections 376‑125, 376‑130, 376‑150 and 376‑170; and
 (b) expenditure mentioned in column 2 of the table in section 376‑135, to the extent that it is not covered by paragraph (a).

Expenditure generally—common rules

376‑175  Expenditure to be worked out on an arm's length basis
  For the purposes of this Division, if any 2 or more