Document ID: chunk:federal_register_of_legislation:C2004A00962:clause:1_6:p1
Version: federal_register_of_legislation:C2004A00962
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/6)
Character Range: 22063–24888

6                               Regulations
                                expenditure prescribed by the regulations

 (2) Legal costs will be covered by item 1 in the table in subsection (1) only if they relate to:
 (a) writers' contracts; or
 (b) chain of title and other copyright issues.

 (3) General business overheads of the company are covered by item 3 in the table in subsection (1) only to the extent to which they do not exceed the lesser of:
 (a) 2% of the total of all the company's *production expenditure on the *film; or
 (b) $500,000.

376‑50  Qualifying Australian production expenditure—specific exclusions

  Despite sections 376‑40 and 376‑45, the following expenditure of a company is not qualifying Australian production expenditure of a company on a *film:
 (a) expenditure that is incurred at a time when:
 (i) the company is not an Australian resident; and
 (ii) the company does not have both a *permanent establishment in Australia and an *ABN;
 (b) expenditure in relation to:
 (i) remuneration and other benefits provided to a person for the person's services in relation to the *making of the film; or
 (ii) travel and other costs associated with the services a person provides in relation to the making of the film;
  if the person:
 (iii) is not a member of the cast; and
 (iv) enters Australia to work on the film for less than 2 consecutive calendar weeks;
 (c) expenditure prescribed by the regulations.

376‑55  Qualifying Australian production expenditure—treatment of services embodied in goods

  If:
 (a) a company incurs expenditure for the provision of what is essentially a service; and
 (b) the results of the service are provided to the company by being embodied in goods that are delivered to the company; and
 (c) the service that is embodied in the goods was predominantly performed outside Australia;
the service is not provided to the company in Australia merely because the goods are delivered to the company in Australia.

Note: Paragraph (b)—a document, for example, might set out legal or other professional advice or a computer disk might contain a program that has been made or data that has been compiled.

Expenditure generally

376‑60  Expenditure to be worked out in Australian dollars

 (1) Expenditure that is incurred in foreign currencies is to be converted into Australian dollars for the purposes of quantifying both:
 (a) the total of all of a company's *production expenditure on a *film; and
 (b) the total of the company's *qualifying Australian production expenditure on a film.

 (2) The conversion rate to be used is the average of the exchange rates applicable from time to time during the period that:
 (a) starts on the earliest day on which:
 (i) principal photography takes place; or
 (ii) the production of the animated image commences; and