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

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

Working out film component of tax loss
Item	Provision	Type of entity
1	165-70	Company - income year when ownership or control changed
2	175-35	Company - deductions that have been used to obtain a tax benefit disallowed
3	268-60 in Schedule 2F to the Income Tax Assessment Act 1936	Trust - income year when ownership or control changed

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