Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:10_4:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 10 cl 4 (pt 1/8)
Character Range: 237159–240177

4                                               Expenditure incurred in other countries
                                                expenditure incurred outside Australia:
                                                (a) for the remuneration of an Australian resident, or the purchase of goods or services from companies or *permanent establishments that have an *ABN; and
                                                (b) during the period in which principal photography for the film takes place outside Australia
                                                if the subject matter of the film reasonably requires the location in which the expenditure is incurred to be used for principal photography.

 (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.

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:
 (i) the Film Finance Corporation Australia Limited;
 (ii) Film Australia Limited;
 (iii) the Australian Film Commission;
 (iv) the Australian Film, Television and Radio School;
  unless the amount or value of the assistance has been repaid;
 (b) 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 or a season of a series—expenditure on an episode beyond the 65th episode of the series.

 (5) In applying paragraph (4)(c), episodes completed before 1 July 2007 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 parties to:
 (a) an *arrangement under which a company incurs expenditure in relation to a *film; or
 (b) any act or transaction directly or indirectly connected with expenditure that a company incurs in relation to a film;
do not deal with each other at *arm's length in relation to the arrangement, or in relation to the act or transaction, the expenditure is taken to be only so much (if any) of the expenditure as would have been incurred if they had been dealing with each other at arm's length in relation