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INCOME TAX ASSESSMENT ACT 1997 - SECT 376.65

Film authority must issue certificate for an Australian film for the producer offset

  (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)   Subject to subsection   (6A), the conditions in this subsection are as set out in the table.

 

Expenditure thresholds

Item

For this type of film ...

The total of the company's qualifying Australian production expenditure on the film (as determined by the film authority under section   376 - 75) is at least ...

and the amount for the film worked out under subsection   (7) is at least ...

1

A * feature film

$500,000

not applicable

2

A single episode program other than a * documentary

$500,000

not applicable

3

A single episode program that is a * documentary

$500,000

$250,000

4

A short form animated film that is not a * feature film, a single episode program, a series or a season of a series

$250,000

$1,000,000

5

A * film where the application for the certificate is for a series and not for a season of that series, and the series is not a * documentary

$1 million

$500,000

6

A * film where the application for the certificate is for a series and not for a season of that series, and the series is a * documentary

$500,000

$250,000

7

A * film where the application for the certificate is for a season of a series, and the series is not a * documentary

$1 million

$500,000

7A

A * film where:

(a) the application for the certificate is for a season of a series; and

(b) the series is a drama series; and

(c) the series is not a * documentary; and

(d) the season meets the conditions in subsection   (6B)

$35 million

not applicable

8

A * film where the application for the certificate is for a season of a series, and the series is a * documentary

$500,000

$250,000

  (6A)   A * film that is both of the type referred to in item   7, and of the type referred to in item   7A, of the table in subsection   (6) meets the conditions in that subsection if the film meets the conditions set out in one or both of those items.

  (6B)   The conditions in this subsection are that:

  (a)   the season is made up of 2 or more episodes that are produced wholly or principally for exhibition together under a single title; and

  (b)   the season 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)   either:

  (i)   for a season that is predominantly a digital animation or other animation--the * making of the season (other than a pilot episode, if any) takes place within a period of not longer than 36 months; or

  (ii)   otherwise--all principal photography for the season (other than a pilot episode, if any) takes place within a period of not longer than 12 months.

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

Start formula start fraction Total QAPE over Duration of film in hours end fraction end 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).



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