Part VI - Film Hire Tax Amendment Act 1988

This commentary item was published in Public Information Bulletin Volume 174, May 1988

More information about Public Information Bulletins.

This Act amends the Film Hire Tax Act 1930 by inserting several definitions to assist in determining the characterisation of films for the purposes of the principal Act.

Section 1 - Short Title and Application

This section provides that this Act is to be read together with, and form part of, the Film Hire Tax Act 1930.

Section 2 - Interpretation

This section amends section 42 of the principal Act. Section 42 is the interpretation provision and this amendment inserts several definitions in the provision. The definitions will assist film hire taxpayers in determining, in cases of doubt, whether or not a film is a commonwealth film. The determination of the origin of films is important as films which are characterised as "commonwealth" are subject to a preferential rate of tax compared to foreign films. The rate being 10 percent of net receipts, calculated pursuant to the film hire tax provisions.

The following definitions are inserted into the Act:-

"Commonwealth company"; "Commonwealth country"; "Commonwealth film"; and "Foreign film".

The definitions are self explanatory and are similar to the definitions which applied to film hire tax prior to the Cinematograph Films Act 1976. That Act abolished the commonwealth film quotas in relation to the exhibition of films. However the previous definitions still have relevance as the determination of what constitutes commonwealth is relevant in determining the relevant rate of tax to impose.

This amendment has effect from 1 January 1981. This will now validate the manner in which the tax has been imposed in those years and ensure that those taxpayers who were entitled to be taxed at the preferential commonwealth rate can confirm the correct characterisation of the film.