20Amount of the charge offset

20 Amount of the charge offset

(1) The amount of the parent entity’s charge offset for the financial year is worked out by:

(a) working out the total new eligible expenditure of the members of the parent entity’s service group for the financial year in relation to each news business corporate group; and

(b) for each of those totals—multiplying the total by whichever of the following percentages that is applicable:

(i) for a news business corporate group consisting only of small or medium business entities for the financial year—200%;

(ii) for other news business corporate groups—150%; and

(c) preparing an adjusted total of the service group’s eligible expenditure for the financial year in relation to each news business corporate group (the news group) by:

(i) if there is a total from paragraph (b) that relates to the news group—adding to that total any amount of carried forward eligible expenditure of the parent entity for the financial year in relation to the news group; or

(ii) if there is no such total from paragraph (b)—counting any amount of carried forward eligible expenditure of the parent entity for the financial year in relation to the news group; and

(d) working out a sum of so much of any combination of the adjusted totals from paragraph (c) as:

(i) does not use so much of a particular adjusted total as exceeds one‑quarter of the amount of charge payable by the parent entity for the financial year; and

(ii) does not exceed that amount of charge.

The sum from paragraph (d) is the amount of the parent entity’s charge offset for the financial year.

Note 1: The amount of charge offset resulting from paragraph (d) takes into account both:

(a) any eligible expenditure for the current financial year (see paragraphs (a) and (b)); and

(b) any eligible expenditure carried forward from an earlier financial year (see paragraph (c)).

Note 2: The parent entity can choose how much of each adjusted total from paragraph (c) is to be combined to produce the sum from paragraph (d).

(2) The parent entity may carry forward to a later financial year, in relation to a particular news business corporate group, so much of the adjusted total from paragraph (1)(c) in relation to the group as is not used under paragraph (1)(d).

Note 1: An amount carried forward under this subsection is carried forward eligible expenditure of the parent entity for a later financial year (see subsection 17(3)).

Note 2: Carried forward eligible expenditure remains available for use under paragraph (1)(d) for a later financial year for which the parent entity is entitled to a charge offset.