Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 (67 of 2024)

Schedule 6   Location offset and producer offset for films

Part 2   Location offset conditions

Division 1   Amendments

Income Tax Assessment Act 1997

9   At the end of section 376-20

Add:

Use of resident entities for post, digital and visual effects production

(7) The condition in this subsection is that:

(a) the company has entered into a contract for the provision of some or all of the *post, digital and visual effects production for the *film with an entity that:

(i) is an Australian resident; or

(ii) is a foreign resident but does have a *permanent establishment in Australia and does have an *ABN; and

(b) all or part of the post, digital and visual effects production (the contracted post, digital and visual effects production ) to which that contract relates has, under the contract, been provided by the entity to the company; and

(c) if the entity is a foreign resident - all or partof the contracted post, digital and visual effects production that has been provided by the entity to the company was provided at or through the entity's permanent establishment in Australia; and

(d) all or part of the company's expenditure on the contracted post, digital and visual effects production is *qualifying Australian production expenditure of the company on the film.

Minimum training expenditure requirement

(8) The condition in this subsection is that the company:

(a) satisfies the minimum training expenditure requirement for the *film under subsection 376-27(1); or

(b) is exempt from that requirement for the film under:

(i) section 376-28 (the permanent film infrastructure exemption); or

(ii) section 376-29 (the training programs exemption).