INCOME TAX ASSESSMENT ACT 1997 - SECT 376.2 Key features of the tax offsets for Australian production expenditure on films

INCOME TAX ASSESSMENT ACT 1997 - SECT 376.2

  (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:

  (i)   if the film is a feature film that was produced for commercial exhibition to the public in cinemas--40% of the company's qualifying Australian production expenditure on the film; and

  (ii)   otherwise--30% of the company's qualifying Australian production expenditure on the film; and

  (b)   the amount of the location offset is 16.5% of the company's qualifying Australian production expenditure on the film; and

  (c)   the amount of the PDV offset is 30% 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.