Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2004-2005
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
FILM LICENSED INVESTMENT COMPANY (CONSEQUENTIAL
PROVISIONS) BILL 2005
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator the Hon. Rod Kemp,
Minister for the Arts and Sport)
FILM LICENSED INVESTMENT COMPANY (CONSEQUENTIAL
PROVISIONS) BILL 2005
OUTLINE
The Film Licensed Investment Company (Consequential Provisions) Bill 2005 amends
the Income Tax Assessment Act 1997 to give effect to the Film Licensed Investment
Company Bill 2005. It also repeals the Film Licensed Investment Company Act 1998
that provided for the pilot film licensed investment company scheme.
FINANCIAL IMPACT STATEMENT
The proposed Film Licensed Investment Company Act 2005 (the FLIC Act) will allow
for $10 million of concessional capital to be raised for investment in qualifying
Australian films in each of the 2005-2006 and 2006-2007 financial years. A 100%
upfront income tax deduction will be available to the initial purchasers of shares in the
film licensed investment company. The Government has budgeted to forego $4 million
in revenue in each of the 2006-2007 and 2007-2008 financial years in relation to the
concession.
NOTES ON CLAUSES
Part 1--Repeal of previous legislation
Clause 1 - Short title
Clause 1 provides that the Bill, when enacted, may be cited as the Film Licensed
Investment Company (Consequential Provisions) Act 2005.
Clause 2 - Commencement
Clause 2(1) contains a table that explains when the provisions of the proposed Film
Licensed Investment Company (Consequential Provisions) Act 2005 commence.
Proposed sections 1, 2 and 3 (and anything else in the proposed Act not covered in the
table in clause 2(1)) commence on the day the proposed Film Licensed Investment
Company (Consequential Provisions) Act 2005 receives the Royal Assent. Schedule 1
will commence at the same time as the proposed Film Licensed Investment Company
Act 2005 (the FLIC Act) commences - this will be the day after the FLIC Act receives
the Royal Assent.
Clause 3 - Schedule(s)
Clause 3 provides that each Act specified in a Schedule to the Act is amended or
repealed as provided for in the Schedule. There is one Schedule to the Bill.
Schedule 1 - Repeal and Amendments
Part 1 - Repeal of previous legislation
Film Licensed Investment Company Act 1998
Item 1 - The whole of the Act
Item 1 provides for the repeal of the Film Licensed Investment Company Act 1998
which provided for the pilot film licensed investment company scheme. The proposed
Film Licensed Investment Company Act 2005 extends the pilot scheme.
Part 2--Other amendments
Income Tax Assessment Act 1997
Items - 2 and 3 - Section 375-850
Items 4 and 5 - Subsection 375-855(1) note
Item 6 - Subsection 375-855(2)
Items 7 and 8 -Subsection 375-855(2) (note)
Items 9 and 10 - Subsection 375-860(2) (note)
Item 15 - Subsection 375-875(2) (note 1)
Item 16 - Subsection 995-1(1) (definition of Arts Minister)
Items 2, 3, 4, 5, 6, 7, 8, 9, 10, 15 and 16 amend the Income Tax Assessment Act 1997
(the ITA Act) to provide for the new dates and cross references valid for the new
proposed Film Licensed Investment Company Act 2005.
Item 11 - Subsection 375-865(1) (note)
Item 14 - Subsection 375-865(2) (note)
Items 11 and 14 amend the notes under subsections 375-865(1) and 375-865(2) to
include reference to section 34 of the Film Licensed Investment Company Act 2005.
This is because section 34 includes new requirements which may be breached by the
FLIC.
Item 12 - Paragraph 375-865(2)(a)
Item 12 amends paragraph 375-865(2)(a) to ensure that requirements under section 34
of the Film Licensed Investment Company Act 2005 are to be included along with
conditions under Division 7 of Part 2 of the Film Licensed Investment Company Act
2005 in regard to determining possible breaches.
Item 13 - Paragraph 375-865(2)(c)
Item 13 provides for the removal of the words "of conditions". This is a consequence of
the change under clause 12.
Part 3--Savings
Item 17 Savings
Item 17 provides that the provisions amended or repealed by Schedule 1 continue to
apply in relation to former film licensed investment companies under the old Film
Licensed Investment Company Act 1998. This allows the former film licensed
investment companies to continue to be subject to the old act without reference to the
new conditions and definitions imposed by the new Film Licensed Investment Company
Act 2005.