Tax Laws Amendment (2007 Measures No. 5) Act 2007 (164 of 2007)

Schedule 10   Streamlining concessions for Australian films and Australian film production

Part 3   Repeal of Divisions 10B and 10BA

Income Tax Assessment Act 1997

63   At the end of section 36-40

Add:

(3) A film loss is the *film component (if any) of a *tax loss.

(4) Your *tax loss for an income year has a film component if your *film deductions for the year exceed the sum of:

(a) your *assessable film income for the year; and

(b) your *net exempt film income for the year.

The amount of the film component is the excess or the tax loss, whichever is lesser.

(5) However, if your *tax loss worked out under a provision listed in the table, the film component is what that tax loss would have been if:

(a) your *film deductions for the *loss year had been your only deductions; and

(b) your *assessable film income for the loss year had been your only assessable income; and

(c) your *net exempt film income for the loss year had been your only *net exempt income.

However, the film component cannot exceed the actual tax loss.