Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:10_8:p3
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 10 cl 8 (pt 3/3)
Character Range: 216766–219229

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 use of the asset in the making of the film (the film proportion). The decline in value of the asset is to be worked out using Division 40.

Note: Under item 10 of the table in section 376‑135, expenditure that sets or increases the cost of the asset does not count as production expenditure.

 (7) If a *balancing adjustment event occurs for the asset before the film is *completed:
 (a) if the asset's *termination value is more than its *adjustable value just before the event occurred—the production expenditure of the company on the film is reduced by the film proportion of the difference; or
 (b) if the asset's termination value is less than its adjustable value just before the event occurred—the production expenditure of the company on the film includes the film proportion of the difference.

376‑130  Production expenditure—special qualifying Australian production expenditure

  Expenditure of a company is also production expenditure of the company on a *film if it is *qualifying Australian production expenditure of the company on the film under section 376‑150 or 376‑165.

Note: This means that the special qualifying Australian production expenditure in sections 376‑150 and 376‑165 is taken into account both in working out the total amount of the company's qualifying Australian production expenditure and in working out the total amount of all the company's production expenditure on the film. The total amount of all production expenditure is relevant to a company's eligibility for the location offset: see the test in paragraph 376‑20(5)(b).

376‑135  Production expenditure—specific exclusions

  Despite sections 376‑125 and 376‑130, the following expenditure of a company is not production expenditure of the company on a *film, except to the extent, if any, as mentioned in column 3 of the table:

Expenditure that does not count as production expenditure on a film
Item                                                                 This kind of expenditure by the company is not production expenditure ...                                                                                                                                            except to the extent to which the expenditure is ...