Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:10_1:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 10 cl 1 (pt 1/13)
Character Range: 177988–180814

1  Division 376
Repeal the Division, substitute:

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

Table of Subdivisions

376‑A Guide to Division 376
376‑B Tax offsets for Australian expenditure in making a film
376‑C Production expenditure and qualifying Australian production expenditure
376‑D Certificates for films and other matters

Subdivision 376‑A—Guide to Division 376

376‑1  What this Division is about

      Companies may be entitled to 1 of 3 refundable tax offsets in relation to Australian expenditure incurred in making films. The offsets are designed to support and develop the Australian screen media industry by providing concessional tax treatment for Australian expenditure.

Table of sections

376‑2 Key features of the tax offsets for Australian production expenditure on films
376‑5 Structure of this Division

376‑2  Key features of the tax offsets for Australian production expenditure on films

 (1) The 3 tax offsets are:
 (a) a refundable tax offset for Australian expenditure in making an Australian film (the producer offset); and
 (b) a refundable tax offset for Australian expenditure in making any film (the location offset); and
 (c) a refundable tax offset for Australian expenditure on post, digital and visual effects production for any film (the PDV offset).

 (2) A company is only entitled to one of these offsets in relation to a film.

 (3) The amount of the offset is determined as a percentage of certain Australian expenditure incurred by a company in producing the film:
 (a) the amount of the producer offset is 40% of the company's qualifying Australian production expenditure on the film if the film is a feature film, and 20% of such expenditure if the film is not a feature film; and
 (b) the amount of the location offset is 15% of the company's qualifying Australian production expenditure on the film; and
 (c) the amount of the PDV offset is 15% of the company's qualifying Australian production expenditure on the film that relates to post, digital and visual effects production for the film.

 (4) One of the requirements for entitlement to these offsets is that a company must be issued with a certificate for the film. The certificate will state the amount of Australian expenditure on which the offset will be determined.

 (5) The offset is claimed by a company in its income tax return.

376‑5  Structure of this Division

 (1) Subdivision 376‑B tells you about the different tax offsets available for films, who can get each offset and what conditions must be met to get each offset. It also tells you how to work out the amount of each offset.

 (2) Subdivision 376‑C explains what is meant by:
 (a) production expenditure on a film; and
 (b) qualifying Australian production expenditure on a film.
It also contains some