INCOME TAX ASSESSMENT ACT 1997 - SECT 376.65 Film authority must issue certificate for an Australian film for the producer offset

INCOME TAX ASSESSMENT ACT 1997 - SECT 376.65

  (1)   The * film authority must issue a certificate to a company for a * film in relation to the producer offset if the film authority is satisfied that:

  (a)   the company either carried out, or made the arrangements for the carrying out of, all the activities that were necessary for the * making of the film; and

  (b)   the conditions in subsections   (2) to (6) are met.

Note:   The operation of paragraph   (a) is affected by paragraph   376 - 180(1)(d) (which deals with the situation where one company takes over the making of a film from another company).

Type of film

  (2)   The conditions in this subsection are that:

  (a)   the * film:

  (i)   has a significant Australian content (see section   376 - 70); or

  (ii)   has been made under an * arrangement entered into between the Commonwealth or an authority of the Commonwealth and a foreign country or an authority of the foreign country; and

  (b)   the film was produced for:

  (i)   exhibition to the public in cinemas or by way of television broadcasting (including broadcasting by way of the delivery of a television program by a broadcasting service within the meaning of the Broadcasting Services Act 1992 ); or

  (ii)   distribution to the public as a video recording (whether on video tapes, digital video disks or otherwise); and

  (c)   the film is:

  (i)   a * feature film; or

  (ii)   a single episode program; or

  (iii)   a series; or

  (iv)   a season of a series; or

  (v)   a short form animated film that is not covered by subparagraph   (i), (ii), (iii) or (iv); and

  (d)   the film is not, or is not to a substantial extent:

  (i)   a film for exhibition as an advertising program or a commercial; or

  (ii)   a film for exhibition as a discussion program, a quiz program, game show, a panel program, a variety program or a program of a like nature; or

  (iii)   a film of a public event (other than a * documentary); or

  (iv)   a training film; or

  (v)   a computer game (within the meaning of the Classification (Publications, Films and Computer Games) Act 1995 ); or

  (vi)   a news or current affairs program; or

  (vii)   a reality program (other than a documentary).

Single episode programs

  (3)   The conditions in this subsection are that, if the * film is a single episode program, it:

  (a)   is of a like nature to a * feature film; and

  (b)   is produced for:

  (i)   exhibition to the public by way of television broadcasting (including broadcasting by way of the delivery of a television program by a broadcasting service within the meaning of the Broadcasting Services Act 1992 ); or

  (ii)   distribution to the public as a video recording (whether on video tapes, digital video disks or otherwise); and

  (c)   if the program is a * documentary--is of at least one half of a commercial hour in duration; and

  (d)   if the program is not a documentary--is of at least one commercial hour in duration.

Short form animated film

  (4)   The conditions in this subsection are that, if the * film is a short form animated film, it:

  (a)   is a program comprising one or more episodes which are produced wholly or principally for exhibition together, for a national market or national markets under a single title; and

  (b)   is predominantly made using cell, stop motion, digital or other animation; and

  (c)   contains a common theme or themes; and

  (d)   is of at least one quarter of a commercial hour in duration.

Series and seasons of series

  (5)   The conditions in this subsection are that:

  (a)   if the application for the certificate is for a * film that is a series and not for a film that is a season of that series:

  (i)   the series is made up of at least 2 episodes; and

  (ii)   each episode of the series is at least one half of a commercial hour in duration, except where the film is predominantly made using cell, stop motion, digital or other animation, in which case each episode is at least one quarter of a commercial hour in duration; and

  (iii)   in the case of a series other than a drama series--the series has a new creative concept (see section   376 - 70); and

  (b)   if the application for the certificate is for a film that is a season of a series:

  (i)   the season is made up of at least 2 episodes; and

  (ii)   each episode of the series is at least one half of a commercial hour in duration, except where the film is predominantly made using cell, stop motion, digital or other animation, in which case each episode is at least one quarter of a commercial hour in duration; and

  (iii)   in the case of a series other than a drama series--the series has a new creative concept (see section   376 - 70).

Expenditure thresholds

  (6)   The conditions in this subsection are as set out in the table.

  (7)   The amount worked out for a * film under this subsection is the amount worked out using the formula:

where:

"duration of film in hours" means the total length of the * film, measured in hours.

"total QAPE" means the total of the company's * qualifying Australian production expenditure on the * film (as determined by the * film authority under section   376 - 75).