103MExpenditure to be nominated only once in meeting licence conditions

103M  Expenditure to be nominated only once in meeting licence conditions Channel provider and part‑channel provider  (i) a person is a channel provider in relation to a subscription TV drama service provided by a licensee because the person supplies a channel; or  (ii) a person is a part‑channel provider in relation to a subscription TV drama service provided by a licensee because the person supplies a package of programs; and  (b) the person nominates the whole or a part of particular expenditure for the purposes of the application of a particular provision of this Division in relation to the subscription TV drama service; the whole or part, as the case may be, of the expenditure must not be nominated by the person for the purposes of:  (c) the application of any other provision of this Division (other than a carry‑forward eligible drama expenditure provision) in relation to that service; or  (d) the application of any provision of this Division in relation to another subscription TV drama service provided by the licensee; or  (e) the application of any provision of this Division in relation to another subscription TV drama service provided by another licensee.  (2) However, the rule in paragraph (1)(e):  (a) does not apply in relation to a person who is a channel provider if:  (i) the person supplies the same or a substantially similar channel to the other licensee; and  (ii) apart from any breaks for the purposes of the transmission of incidental matter, the same or a substantially similar channel supplied by the person is televised by the other licensee on the other subscription TV drama service; and  (b) does not apply in relation to a person who is a part‑channel provider if:  (i) the person supplies the same or a substantially similar package of programs to the other licensee; and  (ii) apart from any breaks for the purposes of the transmission of incidental matter, the same or a substantially similar package of programs supplied by the person is televised by the other licensee on the other subscription TV drama service. Licensee  (b) the licensee nominates the whole or a part of particular expenditure for the purposes of the application of a particular provision of this Division in relation to the subscription TV drama service; the whole or part, as the case may be, of the expenditure must not be nominated by the licensee for the purposes of:  (c) the application of any other provision of this Division (other than a carry‑forward eligible drama expenditure provision) in relation to that service; or  (d) the application of any provision of this Division in relation to another subscription TV drama service provided by the licensee. Subdivision B—Channel provider supplies channel 103N  10% minimum eligible drama expenditure—channel provider supplies channel  (b) a person is a channel provider in relation to the subscription TV drama service because the person supplies a channel;  (c) the channel provider’s new eligible drama expenditure in relation to the subscription TV drama service; and  (d) the channel provider’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service; equals or exceeds 10% of the channel provider’s total program expenditure in relation to the channel. channel provider’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the channel provider’s carry‑forward eligible drama expenditure (within the meaning of subsection 103NA(2)) for the financial year. channel provider’s new eligible drama expenditure, in relation to the subscription TV drama service, means so much of the total expenditure incurred by the channel provider during the financial year on new eligible drama programs as the channel provider nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service. channel provider’s total program expenditure, in relation to the channel, means the total expenditure incurred by the channel provider during the financial year on the program material that is included, or available to be included, in the channel.  (2A) The channel provider is not entitled to nominate, under the definition of channel provider’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the channel provider during the financial year as exceeds 10% of the channel provider’s new eligible drama expenditure in relation to the subscription TV drama service.  (3) Division 3 of Part 10 (which deals with breaches of conditions) does not apply to the condition set out in subsection (1). Note: If the sum of the channel provider’s new eligible drama expenditure and the channel provider’s carry‑forward eligible drama expenditure is less than 10% of the channel provider’s total program expenditure, the shortfall will have to be made up in the next financial year—see sections 103P and 103Q. 103NA  Carry‑forward eligible drama expenditure  (b) a person is a channel provider in relation to the subscription TV drama service because the person supplies a channel; and  (c) the channel provider’s new eligible drama expenditure (within the meaning of section 103N) in relation to the subscription TV drama service for a financial year exceeds 10% of the channel provider’s total program expenditure (within the meaning of section 103N) in relation to the channel for the financial year.  (2) For the purposes of section 103N, the channel provider’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service for the next following financial year is so much of the excess expenditure as the channel provider nominates for the purposes of the application of this subsection in relation to the subscription TV drama service.  (3) Paragraph (1)(c) does not apply to so much of the channel provider’s new eligible drama expenditure (within the meaning of section 103N) in relation to the subscription TV drama service as was incurred before 1 January 2006. 103P  Shortfall of eligible drama expenditure—channel provider supplies channel exclusively to licensee  (a) a licensee (the first licensee) provides a subscription TV drama service (the first subscription TV drama service); and  (b) a person is a channel provider in relation to the subscription TV drama service because the person supplies a channel (the first channel); and  (c) it is not the case that the channel provider supplies the same or a substantially similar channel to another licensee in circumstances where, apart from any breaks for the purposes of the transmission of incidental matter, the same or substantially similar channel supplied by the channel provider is televised by the other licensee on another subscription TV drama service; and  (i) the channel provider’s new eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for a particular financial year (the shortfall year); and  (ii) the channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year;   is less than 10% of the channel provider’s total program expenditure (within the meaning of section 103N) in relation to the first channel for the shortfall year.  (a) the channel provider’s make‑up expenditure is equal to the shortfall amount; or  (b) the first licensee’s make‑up expenditure is equal to the shortfall amount; or  (i) the channel provider’s make‑up expenditure; and  (ii) the first licensee’s make‑up expenditure;   is equal to the shortfall amount. channel provider’s make‑up expenditure means so much of the total expenditure incurred by the channel provider during the make‑up year on new eligible drama programs as the channel provider nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service. first licensee’s make‑up expenditure means so much of the total expenditure incurred by the first licensee during the make‑up year on new eligible drama programs not included, or available to be included, in the first channel as the first licensee nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service.  (a) the channel provider’s new eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year; and  (b) the channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year; fell short of 10% of the channel provider’s total program expenditure (within the meaning of section 103N) in relation to the first channel for the shortfall year. 103Q  Shortfall of eligible drama expenditure—channel provider supplies channel to multiple licensees  (a) a licensee (the first licensee) provides a subscription TV drama service (the first subscription TV drama service); and  (b) a person is a channel provider in relation to the first subscription TV drama service because the person supplies a channel (the first channel); and  (c) the channel provider supplies the same or a substantially similar channel to one or more other licensees (the additional licensees) in circumstances where, apart from any breaks for the purposes of the transmission of incidental matter, the same or substantially similar channel supplied by the channel provider is televised by the additional licensees on subscription TV drama services (the additional subscription TV drama services); and  (i) the channel provider’s new eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for a particular financial year (the shortfall year); and  (ii) the channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year;   is less than 10% of the channel provider’s total program expenditure (within the meaning of section 103N) in relation to the first channel for the shortfall year.  (a) the channel provider’s make‑up expenditure is equal to the shortfall amount; or  (b) the first licensee’s make‑up expenditure is equal to the first licensee’s subscriber percentage of the shortfall amount; or  (c) if the channel provider’s make‑up expenditure is less than the shortfall amount—the first licensee’s make‑up expenditure is equal to the first licensee’s subscriber percentage of the difference between the shortfall amount and the channel provider’s make‑up expenditure. channel provider’s make‑up expenditure means so much of the total expenditure incurred by the channel provider during the make‑up year on new eligible drama programs as the channel provider nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service. first licensee’s make‑up expenditure means so much of the total expenditure incurred by the first licensee during the make‑up year on new eligible drama programs not included, or available to be included, in the first channel as the first licensee nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service. first licensee’s subscriber percentage means the percentage worked out using the following formula:  monthly subscriber number, for a subscription TV drama service for a particular month, means the number worked out using the following formula:   (a) the channel provider’s new eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year; and  (b) the channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year; fell short of 10% of the channel provider’s total program expenditure (within the meaning of section 103N) in relation to the first channel for the shortfall year. subscribers of additional licensees means the sum of the monthly subscriber numbers for the additional subscription TV drama services for each month of operation during the shortfall year. subscribers of first licensee means the sum of the monthly subscriber numbers for the first subscription TV drama service for each month of operation during the shortfall year. Subdivision C—Pass‑through provider supplies channel 103R  10% minimum eligible drama expenditure—pass‑through provider supplies channel  (b) a person is a pass‑through provider in relation to the subscription TV drama service because the person supplies a channel; equals or exceeds 10% of the licensee’s total program expenditure in relation to the channel. licensee’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the licensee’s carry‑forward eligible drama expenditure (within the meaning of subsection 103RA(2)) for the financial year. licensee’s new eligible drama expenditure, in relation to the subscription TV drama service, means the sum of:  (a) so much of the total expenditure incurred by the licensee during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service; and  (b) so much of the total expenditure incurred by the pass‑through provider during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service. licensee’s total program expenditure, in relation to the channel, means the total expenditure incurred by the licensee during the financial year in respect of the supply by the pass‑through provider of the channel.  (2A) The licensee is not entitled to nominate, under the definition of licensee’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the licensee and/or the pass‑through provider during the financial year as exceeds 10% of the licensee’s new eligible drama expenditure in relation to the subscription TV drama service.  (a) the licensee nominates the whole or a part of particular expenditure under paragraph (a) of the definition of licensee’s new eligible drama expenditure in subsection (2); and  (b) the whole or part, as the case may be, of the expenditure is attributable to a new eligible drama program on which expenditure was incurred by the pass‑through provider; that new eligible drama program is to be disregarded in determining the expenditure that may be nominated by the licensee under paragraph (b) of that definition.  (4) Division 3 of Part 10 (which deals with breaches of conditions) does not apply to the condition set out in subsection (1). Note: If the sum of the licensee’s new eligible drama expenditure and the licensee’s carry‑forward eligible drama expenditure is less than 10% of the licensee’s total program expenditure, the shortfall will have to be made up in the next financial year—see section 103S. 103RA  Carry‑forward eligible drama expenditure  (b) a person is a pass‑through provider in relation to the subscription TV drama service because the person supplies a channel; and  (c) the licensee’s new eligible drama expenditure (within the meaning of section 103R) in relation to the subscription TV drama service for a financial year exceeds 10% of the licensee’s total program expenditure (within the meaning of section 103R) in relation to the channel for the financial year.  (2) For the purposes of section 103R, the licensee’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service for the next following financial year is so much of the excess expenditure as the licensee nominates for the purposes of the application of this subsection in relation to the subscription TV drama service.  (3) Paragraph (1)(c) does not apply to so much of the licensee’s new eligible drama expenditure (within the meaning of section 103R) in relation to the subscription TV drama service as was incurred before 1 January 2006. 103S  Shortfall of eligible drama expenditure—pass‑through provider supplies channel  (b) a person is a pass‑through provider in relation to the subscription TV drama service because the person supplies a channel; and  (i) the licensee’s new eligible drama expenditure (within the meaning of section 103R) in relation to the subscription TV drama service for a particular financial year (the shortfall year); and  (ii) the licensee’s carry‑forward eligible drama expenditure (within the meaning of section 103R) in relation to the subscription TV drama service for the shortfall year;   is less than 10% of the licensee’s total program expenditure (within the meaning of section 103R) in relation to the channel for the shortfall year.  (2) It is a condition of the licensee’s licence that, for the next financial year (the make‑up year), the licensee’s make‑up expenditure is equal to the shortfall amount. licensee’s make‑up expenditure, in relation to the subscription TV drama service, means the sum of:  (a) so much of the total expenditure incurred by the licensee during the make‑up year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (2) in relation to the subscription TV drama service; and  (b) so much of the total expenditure incurred by the pass‑through provider during the make‑up year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (2) in relation to the subscription TV drama service.  (a) the licensee’s new eligible drama expenditure (within the meaning of section 103R) in relation to the subscription TV drama service for the shortfall year; and  (b) the licensee’s carry‑forward eligible drama expenditure (within the meaning of section 103R) in relation to the subscription TV drama service for the shortfall year; fell short of 10% of the licensee’s total program expenditure (within the meaning of section 103R) in relation to the channel for the shortfall year. Double counting  (a) the licensee nominates the whole or a part of particular expenditure under paragraph (a) of the definition of licensee’s make‑up expenditure in subsection (3); and  (b) the whole or part, as the case may be, of the expenditure is attributable to a new eligible drama program on which expenditure was incurred by the pass‑through provider; that new eligible drama program is to be disregarded in determining the expenditure that may be nominated by the licensee under paragraph (b) of that definition. Subdivision D—Licensee supplies all program material 103T  10% minimum eligible drama expenditure—licensee supplies all program material  (b) there is none of the following:  (i) a channel provider;  (iii) a part‑channel provider;  (iv) a part‑pass‑through provider;   in relation to the subscription TV drama service; equals or exceeds 10% of the licensee’s total program expenditure in relation to the subscription TV drama service. licensee’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the licensee’s carry‑forward eligible drama expenditure (within the meaning of subsection 103TA(2)) for the financial year. licensee’s new eligible drama expenditure, in relation to the subscription TV drama service, means so much of the total expenditure incurred by the licensee during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service. licensee’s total program expenditure, in relation to the subscription TV drama service, means the total expenditure incurred by the licensee during the financial year on program material that is for televising, or available for televising, by the licensee on the subscription TV drama service.  (3) The licensee is not entitled to nominate, under the definition of licensee’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the licensee during the financial year as exceeds 10% of the licensee’s new eligible drama expenditure in relation to the subscription TV drama service. 103TA  Carry‑forward eligible drama expenditure  (b) there is none of the following:  (i) a channel provider;  (iii) a part‑channel provider;  (iv) a part‑pass‑through provider;  (c) the licensee’s new eligible drama expenditure (within the meaning of section 103T) in relation to the subscription TV drama service for a financial year exceeds 10% of the licensee’s total program expenditure (within the meaning of section 103T) in relation to the subscription TV drama service for the financial year.  (2) For the purposes of section 103T, the licensee’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service for the next following financial year is so much of the excess expenditure as the licensee nominates for the purposes of the application of this subsection in relation to the subscription TV drama service.  (3) Paragraph (1)(c) does not apply to so much of the licensee’s new eligible drama expenditure (within the meaning of section 103T) in relation to the subscription TV drama service as was incurred before 1 January 2006. Subdivision E—Part‑channel provider supplies package of programs 103U  10% minimum eligible drama expenditure—part‑channel provider supplies package of programs  (b) a person is a part‑channel provider in relation to the subscription TV drama service because the person supplies a package of programs;  (c) the part‑channel provider’s new eligible drama expenditure in relation to the subscription TV drama service; and  (d) the part‑channel provider’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service; equals or exceeds 10% of the part‑channel provider’s total program expenditure in relation to the package of programs. part‑channel provider’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the part‑channel provider’s carry‑forward eligible drama expenditure (within the meaning of subsection 103UA(2)) for the financial year. part‑channel provider’s new eligible drama expenditure, in relation to the subscription TV drama service, means so much of the total expenditure incurred by the part‑channel provider during the financial year on new eligible drama programs as the part‑channel provider nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service. part‑channel provider’s total program expenditure, in relation to the package of programs, means the total expenditure incurred by the part‑channel provider during the financial year on the program material that is included, or available to be included, in the package of programs.  (2A) The part‑channel provider is not entitled to nominate, under the definition of part‑channel provider’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the part‑channel provider during the financial year as exceeds 10% of the part‑channel provider’s new eligible drama expenditure in relation to the subscription TV drama service.  (3) Division 3 of Part 10 (which deals with breaches of conditions) does not apply to the condition set out in subsection (1). Note: If the sum of the part‑channel provider’s new eligible drama expenditure and the part‑channel provider’s carry‑forward eligible drama expenditure is less than 10% of the part‑channel provider’s total program expenditure, the shortfall will have to be made up in the next financial year—see sections 103V and 103W. 103UA  Carry‑forward eligible drama expenditure  (b) a person is a part‑channel provider in relation to the subscription TV drama service because the person supplies a package of programs; and  (c) the part‑channel provider’s new eligible drama expenditure (within the meaning of section 103U) in relation to the subscription TV drama service for a financial year exceeds 10% of the part‑channel provider’s total program expenditure (within the meaning of section 103U) in relation to the package of programs for the financial year.  (2) For the purposes of section 103U, the part‑channel provider’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service for the next following financial year is so much of the excess expenditure as the part‑channel provider nominates for the purposes of the application of this subsection in relation to the subscription TV drama service.  (3) Paragraph (1)(c) does not apply to so much of the part‑channel provider’s new eligible drama expenditure (within the meaning of section 103U) in relation to the subscription TV drama service as was incurred before 1 January 2006. 103V  Shortfall of eligible drama expenditure—part‑channel provider supplies a package of programs exclusively to licensee  (a) a licensee (the first licensee) provides a subscription TV drama service (the first subscription TV drama service); and  (b) a person is a part‑channel provider in relation to the subscription TV drama service because the person supplies a package of programs (the first package of programs); and  (c) it is not the case that the part‑channel provider supplies the same or a substantially similar package of programs to another licensee in circumstances where, apart from any breaks for the purposes of the transmission of incidental matter, the same or substantially similar package of programs supplied by the part‑channel provider is televised by the other licensee on another subscription TV drama service; and  (i) the part‑channel provider’s new eligible drama expenditure (within the meaning of section 103U) in relation to the first subscription TV drama service for a particular financial year (the shortfall year); and  (ii) the part‑channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103U) in relation to the first subscription TV drama service for the shortfall year;   is less than 10% of the part‑channel provider’s total program expenditure (within the meaning of section 103U) in relation to the first package of programs for the shortfall year.  (a) the part‑channel provider’s make‑up expenditure is equal to the shortfall amount; or  (b) the first licensee’s make‑up expenditure is equal to the shortfall amount; or  (i) the part‑channel provider’s make‑up expenditure; and  (ii) the first licensee’s make‑up expenditure;   is equal to the shortfall amount. first licensee’s make‑up expenditure means so much of the total expenditure incurred by the first licensee during the make‑up year on new eligible drama programs not included, or available to be included, in the first package of programs as the first licensee nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service. part‑channel provider’s make‑up expenditure means so much of the total expenditure incurred by the part‑channel provider during the make‑up year on new eligible drama programs as the part‑channel provider nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service.  (a) the part‑channel provider’s new eligible drama expenditure (within the meaning of section 103U) in relation to the first subscription TV drama service for the shortfall year; and  (b) the part‑channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103U) in relation to the first TV drama service for the shortfall year; fell short of 10% of the part‑channel provider’s total program expenditure (within the meaning of section 103U) in relation to the first package of programs for the shortfall year. 103W  Shortfall of eligible drama expenditure—part‑channel provider supplies a package of programs to multiple licensees  (a) a licensee (the first licensee) provides a subscription TV drama service (the first subscription TV drama service); and  (b) a person is a part‑channel provider in relation to the first subscription TV drama service because the person supplies a package of programs (the first package of programs); and  (c) the part‑channel provider supplies the same or a substantially similar package of programs to one or more other licensees (the additional licensees) in circumstances where, apart from any breaks for the purposes of the transmission of incidental matter, the same or substantially similar package of programs supplied by the part‑channel provider is televised by the additional licensees on subscription TV drama services (the additional subscription TV drama services); and  (i) the part‑channel provider’s new eligible drama expenditure (within the meaning of section 103U) in relation to the first subscription TV drama service for a particular financial year (the shortfall year); and  (ii) the part‑channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103U) in relation to the first subscription TV drama service for the shortfall year;   is less than 10% of the part‑channel provider’s total program expenditure (within the meaning of section 103U) in relation to the first package of programs for the shortfall year.  (a) the part‑channel provider’s make‑up expenditure is equal to the shortfall amount; or  (b) the first licensee’s make‑up expenditure is equal to the first licensee’s subscriber percentage of the shortfall amount; or  (c) if the part‑channel provider’s make‑up expenditure is less than the shortfall amount—the first licensee’s make‑up expenditure is equal to the first licensee’s subscriber percentage of the difference between the shortfall amount and the part‑channel provider’s make‑up expenditure. first licensee’s make‑up expenditure means so much of the total expenditure incurred by the first licensee during the make‑up year on new eligible drama programs not included, or available to be included, in the first package of programs as the first licensee nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service. first licensee’s subscriber percentage means the percentage worked out using the following formula:  monthly subscriber number, for a subscription TV drama service for a particular month, means the number worked out using the following formula:  part‑channel provider’s make‑up expenditure means so much of the total expenditure incurred by the part‑channel provider during the make‑up year on new eligible drama programs as the part‑channel provider nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service.  (a) the part‑channel provider’s new eligible drama expenditure (within the meaning of section 103U) in relation to the first subscription TV drama service for the shortfall year; and  (b) the part‑channel provider’s carry‑forward eligible drama expenditure (within the meaning of section 103U) in relation to the first TV drama service for the shortfall year; fell short of 10% of the part‑channel provider’s total program expenditure (within the meaning of section 103U) in relation to the first package of programs for the shortfall year. subscribers of additional licensees means the sum of the monthly subscriber numbers for the additional subscription TV drama services for each month of operation during the shortfall year. subscribers of first licensee means the sum of the monthly subscriber numbers for the first subscription TV drama service for each month of operation during the shortfall year. Subdivision F—Part‑pass‑through provider supplies package of programs 103X  10% minimum eligible drama expenditure—part‑pass‑through provider supplies package of programs  (b) a person is a part‑pass‑through provider in relation to the subscription TV drama service because the person supplies a package of programs; equals or exceeds 10% of the licensee’s total program expenditure in relation to the package of programs. licensee’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the licensee’s carry‑forward eligible drama expenditure (within the meaning of subsection 103XA(2)) for the financial year. licensee’s new eligible drama expenditure, in relation to the subscription TV drama service, means the sum of:  (a) so much of the total expenditure incurred by the licensee during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service; and  (b) so much of the total expenditure incurred by the part‑pass‑through provider during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service. licensee’s total program expenditure, in relation to the package of programs, means the total expenditure incurred by the licensee during the financial year in respect of the supply by the part‑pass‑through provider of the package of programs.  (2A) The licensee is not entitled to nominate, under the definition of licensee’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the licensee and/or the part‑pass‑through provider during the financial year as exceeds 10% of the licensee’s new eligible drama expenditure in relation to the subscription TV drama service.  (a) the licensee nominates the whole or a part of particular expenditure under paragraph (a) of the definition of licensee’s new eligible drama expenditure in subsection (2); and  (b) the whole or part, as the case may be, of the expenditure is attributable to a new eligible drama program on which expenditure was incurred by the part‑pass‑through provider; that new eligible drama program is to be disregarded in determining the expenditure that may be nominated by the licensee under paragraph (b) of that definition.  (4) Division 3 of Part 10 (which deals with breaches of conditions) does not apply to the condition set out in subsection (1). Note: If the sum of the licensee’s new eligible drama expenditure and the licensee’s carry‑forward eligible drama expenditure is less than 10% of the licensee’s total program expenditure, the shortfall will have to be made up in the next financial year—see section 103Y. 103XA  Carry‑forward eligible drama expenditure  (b) a person is a part‑pass‑through provider in relation to the subscription TV drama service because the person supplies a package of programs; and  (c) the licensee’s new eligible drama expenditure (within the meaning of section 103X) in relation to the subscription TV drama service for a financial year exceeds 10% of the licensee’s total program expenditure (within the meaning of section 103X) in relation to the package of programs for the financial year.  (2) For the purposes of section 103X, the licensee’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service for the next following financial year is so much of the excess expenditure as the licensee nominates for the purposes of the application of this subsection in relation to the subscription TV drama service.  (3) Paragraph (1)(c) does not apply to so much of the licensee’s new eligible drama expenditure (within the meaning of section 103X) in relation to the subscription TV drama service as was incurred before 1 January 2006. 103Y  Shortfall of eligible drama expenditure—part‑pass‑through provider supplies package of programs  (b) a person is a part‑pass‑through provider in relation to the subscription TV drama service because the person supplies a package of programs; and  (c) the sum of  (i) the licensee’s new eligible drama expenditure (within the meaning of section 103X) in relation to the subscription TV drama service for a particular financial year (the shortfall year); and  (ii) the licensee’s carry‑forward eligible drama expenditure (within the meaning of section 103X) in relation to the subscription TV drama service for the shortfall year;   is less than 10% of the licensee’s total program expenditure (within the meaning of section 103X) in relation to the package of programs for the shortfall year.  (2) It is a condition of the licensee’s licence that, for the next financial year (the make‑up year), the licensee’s make‑up expenditure is equal to the shortfall amount. licensee’s make‑up expenditure, in relation to the subscription TV drama service, means the sum of:  (a) so much of the total expenditure incurred by the licensee during the make‑up year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (2) in relation to the subscription TV drama service; and  (b) so much of the total expenditure incurred by the part‑pass‑through provider during the make‑up year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (2) in relation to the subscription TV drama service.  (a) the licensee’s new eligible drama expenditure (within the meaning of section 103X) in relation to the subscription TV drama service for the shortfall year; and  (b) the licensee’s carry‑forward eligible drama expenditure (within the meaning of section 103X) in relation to the subscription TV drama service for the shortfall year; fell short of 10% of the licensee’s total program expenditure (within the meaning of section 103X) in relation to the package of programs for the shortfall year. Double counting  (a) the licensee nominates the whole or a part of particular expenditure under paragraph (a) of the definition of licensee’s make‑up expenditure in subsection (3); and  (b) the whole or part, as the case may be, of the expenditure is attributable to a new eligible drama program on which expenditure was incurred by the part‑pass‑through provider; that new eligible drama program is to be disregarded in determining the expenditure that may be nominated by the licensee under paragraph (b) of that definition. Subdivision G—Licensee supplies part of program material 103Z  10% minimum eligible drama expenditure—licensee supplies part of program material  (b) some, but not all, of the program material that is televised by the licensee on the subscription TV drama service consists of program material included in a package of programs supplied to the licensee by:  (i) a part‑channel provider; or  (ii) a part‑pass‑through provider;  (c) the remainder of the program material that is televised by the licensee on the subscription TV drama service consists predominantly of drama programs;  (d) the licensee’s new eligible drama expenditure in relation to the subscription TV drama service; and  (e) the licensee’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service; equals or exceeds 10% of the licensee’s total program expenditure in relation to the subscription TV drama service. licensee’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the licensee’s carry‑forward eligible drama expenditure (within the meaning of subsection 103ZAA(2)) for the financial year. licensee’s new eligible drama expenditure, in relation to the subscription TV drama service, means so much of the total expenditure incurred by the licensee during the financial year on new eligible drama programs not included in that package as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service. licensee’s total program expenditure, in relation to the subscription TV drama service, means the total expenditure incurred by the licensee during the financial year on program material that is:  (a) not included in that package; and  (b) for televising, or available for televising, by the licensee on the subscription TV drama service.  (3) The licensee is not entitled to nominate, under the definition of licensee’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the licensee during the financial year as exceeds 10% of the licensee’s new eligible drama expenditure in relation to the subscription TV drama service. 103ZAA  Carry‑forward eligible drama expenditure  (b) some, but not all, of the program material that is televised by the licensee on the subscription TV drama service consists of program material included in a package of programs supplied to the licensee by:  (i) a part‑channel provider; or  (ii) a part‑pass‑through provider;  (c) the remainder of the program material that is televised by the licensee on the subscription TV drama service consists predominantly of drama programs; and  (d) the licensee’s new eligible drama expenditure (within the meaning of section 103Z) in relation to the subscription TV drama service for a financial year exceeds 10% of the licensee’s total program expenditure (within the meaning of section 103Z) in relation to the subscription TV drama service for the financial year.  (2) For the purposes of section 103Z, the licensee’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service for the next following financial year is so much of the excess expenditure as the licensee nominates for the purposes of the application of this subsection in relation to the subscription TV drama service.  (3) Paragraph (1)(c) does not apply to so much of the licensee’s new eligible drama expenditure (within the meaning of section 103Z) in relation to the subscription TV drama service as was incurred before 1 January 2006. Subdivision H—Annual returns 103ZA  Licensee to lodge annual return  (1) A licensee who provides one or more subscription TV drama services must, within 60 days after the end of each financial year of operation, give to the ACMA a return, in the approved form, containing such information as is required by that form in relation to the application of this Division in connection with those services.  (b) the person intentionally contravenes that requirement.  (3) A reference in this section to an approved form is a reference to a form approved, in writing, by the ACMA for the purposes of the provision in which the expression appears. 103ZB  Channel provider and part‑channel provider to lodge annual return  (1) If a person is a channel provider or a part‑channel provider in relation to one or more subscription TV drama services provided by a licensee during a financial year, the person must, within 60 days after the end of that financial year, give to the ACMA a return, in the approved form, containing such information as is required by that form in relation to the application of this Division in connection with those services.  (b) the person intentionally contravenes that requirement.  (a) a person is a channel provider or a part‑channel provider in relation to one or more subscription TV drama services provided by a licensee during a financial year; and  (b) the person contravenes subsection (1) in relation to the financial year; the ACMA must inform the licensee, in writing, of that contravention as soon as practicable after the ACMA becomes aware of that contravention.  (4) A reference in this section to an approved form is a reference to a form approved, in writing, by the ACMA for the purposes of the provision in which the expression appears. 103ZC  ACMA may inquire into the correctness of an annual return   The ACMA may make whatever inquiries it thinks necessary or desirable in order to determine whether a return given to it under this Subdivision contains correct information. 103ZD  Nominations to be attached to annual returns Licensee  (1) A nomination that:  (a) is made by a licensee; and  (b) relates to the application of a provision of this Division in respect of a financial year; must:  (c) be in writing; and  (d) accompany the return given by the licensee under section 103ZA for that financial year. Channel provider and part‑channel provider  (2) A nomination that:  (a) is made by a person who is a channel provider or a part‑channel provider in relation to one or more subscription TV drama services provided by a licensee during a financial year; and  (b) relates to the application of a provision of this Division in respect of that financial year; must:  (c) be in writing; and  (d) accompany the relevant return given by the channel provider or the part‑channel provider, as the case may be, under section 103ZB for that financial year. Subdivision J—Miscellaneous 103ZG  Anti‑avoidance—transactions between persons not at arm’s length  (a) a person has incurred expenditure in connection with a transaction where the parties to the transaction are not dealing with each other at arm’s length in relation to the transaction; and  (b) apart from this section, the expenditure is counted for the purposes of the application of this Division; and  (c) the amount of the expenditure is greater or less than is reasonable; the ACMA may, by writing, determine that the amount of the expenditure is taken, for the purposes of the application of this Division in relation to the parties to the transaction, to be the amount that would have been reasonable if the parties were dealing with each other at arm’s length.  (2) A determination under subsection (1) has effect accordingly. 103ZH  Expenditure to be expressed in Australian currency  (1) For the purposes of this Division, expenditure is to be expressed in Australian currency.  (2) For the purposes of this Division, if expenditure is incurred otherwise than in Australian currency, the expenditure is to be expressed in Australian currency at a rate equal to whichever of the following is applicable:  (a) if the expenditure is incurred in connection with a transaction and the parties to the transaction have agreed on the exchange rate that is applicable to the expenditure—that exchange rate; or  (b) in any other case—the exchange rate applicable at the time when the expenditure is incurred.