Key issues in Offset
Administration
CELEBRATING
Alex Sangston
AUST
Seni RAL
or M IAN ST
anager, ORIES
ProduRUTH
cer OffHA
setRL
& EY
Co-production
CEO, SCREEN AUSTRALIA
1
PRODUCER OFFSET – Questions to keep in mind
1. What is the Offset for?
2. Who takes the risk?
3. What does the Govt expect from the Offset?
4. How broad are SA’s responsibilities?
5. What is the role of the Provisional certificate?
2
PRODUCER OFFSET – Certs issued to 30 June 2015
500
400
300
Provisionals
200
Finals
100
0
Features
Docs
Tv/Other
3
PRODUCER OFFSET - Distribution
Section 376-60
The amount of the producer offset is:
(a) if the film is a feature film—40%; or
(b) if the film is not a feature film—20%;
Section 376-65(2)
(b) the film was produced for:
(i) exhibition to the public in cinemas or by way of
television broadcasting… or
(ii) distribution to the public as a video recording…
4
PRODUCER OFFSET – Incurred expenditure
•
Qualifying – not excluded
•
Australian – goods/services provided in Australia
•
Production – making of the film
•
Expenditure – incurred
5
PRODUCER OFFSET – Incurred expenditure
Section 376-125
(1) A company’s
production expenditure on a film
is expenditure that the company
incurs…
6
PRODUCER OFFSET - Footage
Section 376-150
(1) The following expenditure of a company is also qualifying
Australian production expenditure of the company on a film:
…
2
Expenditure incurred in acquiring Australian copyright
expenditure incurred to acquire copyright, or a licence in relation to
copyright, in a pre-existing work for use in the film if the copyright
is held by an individual or a company that is an Australian resident
7
PRODUCER OFFSET - Footage
Section 376-55
(4) The company is not entitled to the producer offset if:
…
(c) a certificate for the film has been issued at any time
under section 376-20 (certificate for the location offset)
(whether or not the certificate is still in force); or
(d) a certificate for the film has been issued at any time
under section 376-45 (certificate for the PDV offset)
(whether or not the certificate is still in force); or
8
PRODUCER OFFSET – Arm’s Length
Section 376-175
For the purposes of this Division, if any 2 or more parties to:
(a) an *arrangement under which a company incurs expenditure in
relation to a *film; or
(b) any act or transaction directly or indirectly connected with
expenditure that a company incurs in relation to a film;
do not deal with each other at *arm’s length in relation to the
arrangement, or in relation to the act or transaction, the expenditure is
taken to be only so much (if any) of the expenditure as would have
been incurred if they had been dealing with each other at arm’s length
in relation to the arrangement, or in relation to the act or transaction.
9
PRODUCER OFFSET – Arm’s Length
Section 376-175
…if any 2 or more parties to:
(a) an
*arrangement under which a company incurs
expenditure in relation to a *film; or
(b)
any act or transaction directly or indirectly
connected with expenditure that a company incurs in
relation to a film;
10
PRODUCER OFFSET – ‘Marketing’
Section 376-170(2)
6
Expenditure incurred in producing Australian copyright
promotional material
expenditure incurred in Australia in the income year of the *completion
of the *film or an earlier year in respect of any of the following:
(a) producing material
for publicising or otherwise
promoting the film where the copyright in the material is held
or partially held by a company that is an Australian resident;
11
PRODUCER OFFSET – Wrap up
•
Case-by-case
•
Final is not bound by Provisional
•
Offset is taxpayers’ money
•
Government’s ROI
•
Industry must self-police
12
Document Outline
