On 31 August 2021, the Environment and Communications Legislation Committee handed down its report on the Treasury Laws Amendment (2021 Measures No 5) Bill 2021, which would reform reforms to the Australian Screen Production Incentive; and consequential matters arising from the corporate insolvency reforms.
As you read this, it may seem ‘arid’ but it has inflamed and galvanised the film industry, or part of it – the post-production, digital and visual effects (PDV) which has helped fund big movies and television series in Australia (see related TT article).
The report deals exclusively with the film matters (ie Sch 1).
- The Liberal-aligned Senators recommended the Bill be passed with some minor variations, including to the rules affecting the copyright cap for documentaries.
- Labor wants Sch 1 dropped from the Bill, other than the increase in the Producer Offset for television and the removal of the 65 hour cap.
- The Greens want 4 things removed and requested “proper consultation” with the industry before revised legislation is introduced. [LTN 170, 3/9/21]
The Bill – Schedule 1, amends: the Income Tax Assessment Act 1997 to:
- increase the producer offset, for films that are not feature films, released in cinemas,
- to 30 per cent of total qualifying Australian production expenditure;
- increase the minimum qualifying Australian production expenditure threshold for claiming the producer offset and the post, digital and visual effects offset to $1 million;
- remove the 65 commercial hour cap on claiming qualifying Australian production expenditure for a drama series and seasons of a drama series; and create limitations on what a company can count as a films qualifying Australian production expenditure.
Innovation and Science Australia to be renamed: Bill passes Parliament
The Industry Research and Development Amendment (Industry Innovation and Science Australia) Bill 2021was passed unamended by Federal Parliament on 30 August 2021. It will rename the independent statutory board currently known as “Innovation and Science Australia” (“ISA”) to “Industry Innovation and Science Australia” (“IISA”) and will make the necessary consequential amendments (ie to other Acts). [LTN 170, 3/9/21]
[Tax Month – September 2021] 28.9.21