Commonwealth act

Income Tax (Film Royalties) Act 1977

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

131 of 1977

Collection

act

Plain English Summary

2/10 complexity

This Act imposes a 10% withholding tax on payments made to foreign residents for the right to use films and video tapes in Australia.

How it works:

When an Australian business pays a foreign film company to license a movie or video, the Australian company must withhold 10% of that payment.
This withheld amount is paid to the Australian Taxation Office as income tax on behalf of the foreign resident.
The Act operates as a "machinery" provision—it actually levies the tax, while the detailed rules (such as who is liable and when payment is due) are found in section 136a of the Income Tax Assessment Act 1936.

Why it matters: This ensures foreign film distributors and copyright holders pay tax on income earned from the Australian market, even if they have no other business presence in Australia.

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Current sections

Direct links to the current provisions in Income Tax (Film Royalties) Act 1977.

Income Tax (Film Royalties) Act 1977

INCOME TAX (FILM ROYALTIES) ACT 1977

No. 131 of 1977

An Act to impose income tax upon income derived by non-residents in respect of the supply of films and video tapes.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title

This Act may be cited as the Income Tax (Film Royalties) Act 1977.

Commencement

This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

In this Act, “Assessment Act” means the Income Tax Assessment Act 1936.

Incorporation

The Assessment Act is incorporated and shall be read as one with this Act.

Imposition of tax

The tax known as income tax, to the extent that that tax is payable in accordance with section 136a of the Assessment Act, is imposed, and shall be levied and paid, upon income to which that section applies.

Rate of tax

The rate of tax imposed by this Act upon income to which section 136a of the Assessment Act applies is 10 per centum.

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Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Income Tax (Film Royalties) Act 1977