Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Film Licensed Investment Company Bill 1998

Part 1 P reliminary

   

1   Short title

                   This Act may be cited as the Film Licensed Investment Company Act 1998 .

2   Commencement

                   This Act commences on the day on which it receives the Royal Assent.

3   Overview

(1)   This Act sets up a pilot scheme. The purpose of the pilot scheme is to encourage investment in qualifying Australian films.

(2)   Under the scheme, a company may apply for a concessional capital licence. The shareholders in the licensed companies (FLICs) are able to obtain a 100% tax deduction for money invested in the companies if that money is then invested in qualifying Australian films.

(3)   The scheme operates during the period commencing on the day that the Minister grants the first licence (which will occur during the 1998-99 financial year) and ending on 30 June 2002. During the licence period, up to $40 million will be able to be raised for investment in qualifying Australian films.

Note:          For qualifying Australian film see subsection 6(1).

4   Objects of the pilot scheme

                   The objects of the scheme are as follows:

                     (a)  to encourage the production of qualifying Australian films which portray Australian perspectives and Australia’s cultural diversity;

                     (b)  to encourage the production of qualifying Australian films which are of a high standard and are likely to be commercially successful;

                     (c)  to support and promote the ongoing development of the Australian film industry through encouraging the use of Australia’s creative resources and industry expertise;

                     (d)  to ensure that the level of the Commonwealth’s assistance to the Australian film industry is quantifiable, accountable, and transparent.

5   Extraterritorial operation

                   Subparagraph 25(a)(v), section 27, Part 3 and the Schedule extend to acts, omissions, matters and things outside Australia, whether or not in a foreign country.

6   Definitions

             (1)  In this Act, unless the contrary intention appears:

allowable deduction percentage has the meaning given in section 37.

Application rules means the rules made by the Minister under section 9.

bank includes but is not limited to a body corporate that holds an authority under subsection 9(3) of the Banking Act 1959.

concessional capital means money paid to a FLIC by a person for the issue, during the FLIC’s licence period, of shares to that person.

concessional capital licence means a licence granted by the Minister under section 16.

film licensed investment company means a company that has been granted a concessional capital licence under section 16 (whether or not the licence has ceased to be in force).

FLIC means a film licensed investment company.

invested in a film has the meaning given in subsection (2).

licence period , in relation to a FLIC, means the period commencing on the day on which the FLIC was granted a concessional capital licence and ending:

                     (a)  if the licence is revoked—on the day specified by the Minister under section 33 as the day on which it is revoked; or

                     (b)  otherwise—on 30 June 2000.

non-concessional capital means capital raised by the FLIC after the end of the licence period.

period of the scheme means the period commencing on the day the Minister grants the first licence under the scheme and ending on 30 June 2002.

provisionally certified film means a film that has been issued with a provisional certificate under section 124ZAB of the Income Tax Assessment Act 1936 .

qualifying Australian film has the same meaning as it has in Division 10BA of Part III of the Income Tax Assessment Act 1936 .

Secretary means the Secretary to the Department of Communications and the Arts.

Selection Advisory Panel means a body established under the Application rules to advise the Minister in respect of applications for a concessional capital licence.

             (2)  For the purposes of this Act, money is invested in a film if it is:

                     (a)  spent by a FLIC as a contribution to the cost of producing the film for the purpose of becoming the first owner, or one of the first owners, of the copyright in the film when the copyright comes into existence; or

                     (b)  if the FLIC has contributed to the cost of production of a film for the purpose set out in paragraph (a)—spent by a FLIC as a contribution to the cost of marketing and distributing the film.

7   Application of the Criminal Code

                   Chapter 2 of the Criminal Code applies to all offences against this Act.