Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:10_8:p2
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 10 cl 8 (pt 2/3)
Character Range: 213979–216997

expenditure—special rules for the location offset

376‑140 Production expenditure—special rules for the location offset

Qualifying Australian production expenditure—common rules

376‑145 Qualifying Australian production expenditure—general test
376‑150 Qualifying Australian production expenditure—specific inclusions
376‑155 Qualifying Australian production expenditure—specific exclusions
376‑160 Qualifying Australian production expenditure—treatment of services embodied in goods

Qualifying Australian production expenditure—special rules for the location offset and the PDV offset

376‑165 Qualifying Australian production expenditure—special rules for the location offset and the PDV offset

Qualifying Australian production expenditure—special rules for the producer offset

376‑170 Qualifying Australian production expenditure—special rules for the producer offset

Expenditure generally—common rules

376‑175 Expenditure to be worked out on an arm's length basis
376‑180 Expenditure incurred by prior production companies

Production expenditure—common rules

376‑125  Production expenditure—general test

 (1) A company's production expenditure on a *film is expenditure that the company incurs to the extent to which it:
 (a) is incurred in, or in relation to, the *making of the film; or
 (b) is reasonably attributable to:
 (i) the use of equipment or other facilities for; or
 (ii) activities undertaken in;
  the making of the film.

 (2) The making of a *film means the doing of the things necessary for the production of the first copy of the film.

 (3) The making of a *film includes:
 (a) pre‑production activities in relation to the film; and
 (b) post‑production activities in relation to the film; and
 (c) any other activities undertaken to bring the film up to the state where it could reasonably be regarded as ready to be distributed, broadcast or exhibited to the general public.

 (4) The making of a *film does not include:
 (a) developing the proposal for the *making of the film; or
 (b) arranging or obtaining finance for the film; or
 (c) distributing the film; or
 (d) promoting the film.

 (5) Without limiting subsection (1), a company's production expenditure on a *film:
 (a) may be expenditure that is incurred in the income year for which the *tax offset is sought or in an earlier income year; and
 (b) may be expenditure of either a capital or a revenue nature; and
 (c) may be expenditure that gives rise to a deduction.
Paragraph (c) has effect subject to item 10 of the table in section 376‑135 (which deals with capital allowances).

 (6) If:
 (a) a company:
 (i) *holds a *depreciating asset; and
 (ii) uses the asset, while held, in the *making of a *film; and
 (b) deductions in relation to the asset are available under Division 40 (which deals with capital allowances);
the production expenditure of the company on the film includes an amount equal to the decline in the value of the asset to the extent to which that decline is reasonably attributable to the