08 May 077 Divs 10BA and 10B (film incentives) to be phased outThe Government has announced that the current investor tax incentives available through Division 10BA and Division 10B of ITAA 1936 will be phased out, with no new applications to be accepted after 30 June 2007. This will increase estimated taxation revenue by $55.0 million over three years from 2008 09. The Film Licensed Investment Company scheme will not be renewed beyond its current expiry date of 30 June 2007.
In their place, a producer tax rebate will be introduced, by which Australian producers will be eligible for a 40% refundable rebate on feature films and a 20% refundable rebate on other media productions, including television series, documentaries, and mini series. To be eligible for the rebate, productions will be required to meet criteria, including creative control by Australians, and minimum qualifying expenditure thresholds depending on the type of production. The rebate will apply to expenditure incurred on eligible productions from 1 July 2007.
See Budget Paper No 2 p 101