Federal Register of Legislation - Australian Government

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A Bill for an Act to provide for consequential matters relating to the enactment of the Film Licensed Investment Company Act 2005, and for related purposes
Administered by: DCITA
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 31 May 2005
Introduced HR 26 May 2005

 

 

 

 

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.