Producer Offset Rules 2018

This instrument, the Producer Offset Rules 2018, prescribes the procedural and documentary framework that Screen Australia (the film authority) must follow when issuing provisional certificates and final certificates for the producer offset under Division 376 of the Income Tax Assessment Act 1997 (the Act). It comes into force the day after registration (rule 2) and is made under subsections 376-265(1) and (2) of the Act (rule 3). The instrument states its purpose as providing for provisional certificates and specifying how applications for certificates (including provisional certificates) are to be made (rule 4).

Mechanically, the Rules:

define who may apply for provisional and final certificates, including Australian residents and certain foreign residents with a permanent establishment and an ABN (rule 8);
set out the required form, content and attachments for provisional applications (rule 9 and Schedule 1) and for applications for a certificate for the producer offset (rule 21 and Schedule 2);
require the payment of an application fee before the film authority will consider an application and provide the fee schedule and indexation methodology (rules 11 and 12);
permit and regulate the film authority’s commissioning of independent line producer reports and other advice, and require the film authority to give applicants an opportunity to respond where such third‑party material is used to support a refusal (rules 13(2)-(6), 24(1)-(5));
provide a procedure for the film authority to request additional information and to set a notification period, with an applicant able to request an extension within 28 days of receiving the request (rules 14, 25);
distinguish the content and level of documentary proof required at provisional stage and at final certificate stage, including detailed expenditure statements, audited figures, auditor independence requirements and foreign currency statements where applicable (rules 27-29, 21(3)(d), rule 30);

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Producer Offset Rules 2018

I, Graeme Mason, Chief Executive Officer of Screen Australia, make the following instrument.

Dated 24 January 2018

Graeme Mason

Chief Executive Officer of Screen Australia

Contents

Part 1—Preliminary

1 Name

2 Commencement

3 Authority

4 Purpose of this instrument

5 Schedules

6 Definitions

Part 2—Provisional certificates for the producer offset

7 Definition for Part 2

8 Application for provisional certificate

9 Form of application for provisional certificate

10 Delivery of application for provisional certificate

11 Fee for application for provisional certificate

12 Indexation factor

13 Film authority to consider application for provisional certificate

14 Film authority may request additional information from applicant

15 Refusal to issue provisional certificate

16 Notice of refusal to issue provisional certificate

17 Issue of provisional certificate

18 Content of provisional certificate

19 Effect of provisional certificate

Part 3—Certificates for the producer offset

20 Definition for Part 3

21 Form of application for certificate for the producer offset

22 Delivery of application for certificate for the producer offset

23 Adjustment of fee for application for provisional certificate

24 Consideration of application for certificate for the producer offset and other information

25 Film authority may request additional information from applicant

Part 4—Expenditure statements and foreign currency statements

26 Definition for Part 4

27 Expenditure statements for provisional certificates

28 Expenditure statements for certificates for the producer offset

29 Foreign currency statement for certificates for the producer offset

Part 5—Audit requirements

30 Conduct of audit

Part 6—Transitional provisions

31 Definition for Part 6

32 Application of the 2007 rules

Schedule 1—Information and documents for an application for a provisional certificate

Part A Information to be included in an application for a provisional certificate

Division 1—Information about the applicant

Division 2—Information about the film

Division 3—Other information

Part B Documents to be attached to an application for a provisional certificate

Schedule 2 Information and documents for an application for a certificate for the producer offset

Part A Information to be included in an application for a certificate for the producer offset

Division 1—Information about the applicant

Division 2—Information about the film

Division 3—Other information

Part B Documents to be attached to an application for a certificate for the producer offset

Schedule 3—Repeals

Producer Offset Rules 2007

Part 1—Preliminary

1 Name

This instrument is the Producer Offset Rules 2018.

2 Commencement

This instrument commences on the day after it is registered.

3 Authority

This instrument is made under subsections 376-265(1) and (2) of the Income Tax Assessment Act 1997.

4 Purpose of this instrument

The purpose of this instrument is:

(a) to provide for the issue of provisional certificates in relation to the producer offset (see subsection 376-265(1) of the Act); and

(b) to specify how applications for certificates (including provisional certificates) in relation to the producer offset are to be made (see subsection 376-265(2) of the Act).

5 Schedules

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

6 Definitions

(1) In this instrument:

Act means the Income Tax Assessment Act 1997.

application for a certificate for the producer offset means an application made under subsection 376-230(3) of the Act.

certificate for the producer offset means a certificate issued by the film authority under section 376-65 of the Act.

commercial hour has the same meaning as in Division 376 of the Act.

estimated qualifying Australian production expenditure means an amount worked out having regard to the matters in Subdivision 376-C of the Act.

independent line producer means a person who, in the film authority’s opinion:

has recent relevant experience in film production management; and
is independent of the company in relation to which he or she is asked, under subrules 13(3) or 24(2), to provide a report.

indexation factor, for a financial year, has the meaning given by rule 12.

index number, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of the quarter.

official co-production means a film that has been, or will be, made under an arrangement entered into between the Commonwealth (or any authority of the Commonwealth) and a foreign country (or an authority of a foreign country).

producer offset means the tax offset mentioned in subsection 376-55(1) of the Act.

provisional certificate means a certificate issued by the film authority under rule 17.

registered company auditor has the meaning given by section 9 of the Corporations Act 2001.

related body corporate has the meaning given by section 9 of the Corporations Act 2001.

statutory declaration means a statutory declaration made under the Statutory Declarations Act 1959.

Note: A number of expressions used in this instrument are defined in subsection 995-1(1) of the Act, including the following:

(a) arm’s length;

(b) arrangement;

(d) Australian resident;

(e) completed;

(f) development assistance;

(g) film;

(h) film authority;

(i) make;

(j) qualifying Australian production expenditure;

(k) total film expenditure.

(2) For the purposes of this instrument, if a company (the incoming company) takes over the making of a film from another company (the outgoing company) any of the activities carried out, or arrangements made, by the outgoing company in relation to the film are taken to have been carried out or made by the incoming company in relation to the film.

Part 2—Provisional certificates for the producer offset

7 Definition for Part 2

In this Part:

applicant means a company that has applied for the producer offset in accordance with this Part.

8 Application for provisional certificate

A company may apply to the film authority for a provisional certificate for the producer offset for a film if:

(a) either:

(i) the company is an Australian resident; or

(ii) the company:

(A) is a foreign resident; and

(B) has a permanent establishment in Australia; and

(b) the company:

(i) is the company that is carrying out, or is making the arrangements for the carrying out of, all the activities that are necessary for the making of the film; or

(ii) is the company developing the film prior to the establishment of a production company.

9 Form of application for provisional certificate

Information in application

(1) An application for a provisional certificate for the producer offset must:

(a) be made to the film authority in writing; and

(b) include the information specified in clauses 1.1 to 2.30 of Part A of Schedule 1; and

(2) If the film is a series or a season of a series, the application must also include:

(a) the information specified in clauses 2.31 and 2.32 of Part A of Schedule 1; and

(b) if the series or season is similar to another series – the information specified in clause 2.33 of Part A of Schedule 1.

(3) If any of the information specified in Division 3 of Part A of Schedule 1 is available and is relevant to the film, the application must also include that information.

Documents attached to application

(4) The following documents must be attached to the application:

(a) if the film is an official co-production – the documents specified in Part B of Schedule 1;

(b) if the film is not an official co-production – the documents specified in Part B of Schedule 1, other than the documents specified in clause 1.3 of that Part;

(c) an expenditure statement, prepared in accordance with rule 27, for the total film expenditure, and the estimated qualifying Australian production expenditure, on the film.

Waiver of requirement

(5) The film authority may waive a requirement specified in this rule for an application.

10 Delivery of application for provisional certificate

An application for a provisional certificate for the producer offset must be sent to the film authority.

11 Fee for application for provisional certificate

(1) A fee (the application fee) is payable by an applicant in relation to an application for a provisional certificate.

Working out the application fee

(2) For an application made in the financial year starting on 1 July 2017, the application fee is the amount specified in the following table:

Item	If the total film expenditure of the film (excluding GST) is ...	the fee is ...
1	no more than $1,000,000	$127
2	more than $1,000,000 but no more than $5,000,000	$634
3	more than $5,000,000 but no more than $15,000,000	$1,269
4	more than $15,000,000 but no more than $30,000,000	$2,538
5	more than $30,000,000	$4,441

(3) For the purposes of this Instrument, the application fee payable by an applicant in relation to an application for a provisional certificate made in:

(a) the financial year beginning on 1 July 2018; or

(b) a later financial year;

is worked out using the following formula:

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where:

indexation factor means the indexation factor for the financial year.

previous applicable application fee means the application fee payable for the previous financial year.

Other matters relating to the fee

(5) The film authority must not consider the application unless the application fee has been paid.

(6) If the applicant withdraws the application before a provisional certificate, or notice of refusal to issue a provisional certificate, is issued, the film authority must refund the application fee to the applicant.

(7) If the film authority refuses to issue a provisional certificate, the application fee is not refundable.

12 Indexation factor

(1) For the purposes of this Instrument, the indexation factor for a financial year is the number calculated, to 3 decimal places (rounding up if the fourth decimal place is 5 or more), using the formula:

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where:

base March quarter means the last March quarter before the reference March quarter.

reference March quarter means the last March quarter before the financial year.

(2) Subject to subsection (3), if (whether before or after the commencement of this section) the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published in respect of that quarter, the publication of the later index number must be disregarded for the purposes of this rule.

(3) If (whether before or after the commencement of this section) the Australian Statistician has changed or changes the index reference period for the Consumer Price Index, then, for the purposes of the application of this rule after the change took place or takes place, regard must only be had to the index number published in terms of the new index reference period.

13 Film authority to consider application for provisional certificate

(1) On receiving an application for a provisional certificate for the producer offset, the film authority must:

(a) consider the application; and

(b) decide whether or not to issue a provisional certificate to the applicant.

(2) For paragraph (1)(a), in considering the application, the film authority:

(a) may seek information or advice from any person or source; and

(b) may take into account the knowledge and experience of:

(i) the members of the board of the film authority; and

(ii) employees of the film authority; and

(i) the application and attached documents;

(ii) any written report requested by the film authority under subrule (3) and any written submission made by the applicant in response to that report;

(iii) any additional information provided by the applicant under rule 14;

(iv) any other relevant information or advice obtained by the film authority.

(3) Without limiting paragraph (2)(a), the film authority may ask an independent line producer to provide a written report to the film authority about any matter that is relevant to whether a condition set out in subsections 376-65(2) to (6) of the Act will be met or is likely to be met.

(4) If a request under subrule (3) relates to the conditions set out in subsection 376-65 (6) of the Act, the report may include advice about any of the following matters:

(a) whether the applicant’s expenditure statement is commercially reasonable;

(b) whether specific items claimed in the applicant’s expenditure statement are reasonably attributable to the estimated qualifying Australian production expenditure;

(c) whether costs that are charged for specific items indicate that the parties to the transaction will be dealing with each other at arm’s length.

(5) If the film authority intends to use information or advice from a third party to support a decision to refuse to issue a provisional certificate for the producer offset to an applicant, the film authority must give the applicant reasonable opportunity to comment on the substance of that information or advice.

(6) If the film authority asks an independent line producer to provide a written report under subrule (3), the film authority must:

(a) give a copy of the report to the applicant to whom it relates as soon as practicable; and

(b) give applicant reasonable opportunity to make a written submission to the film authority in response to the report.

14 Film authority may request additional information from applicant

(1) If, in the opinion of the film authority, it requires additional information in order to decide whether or not to issue a provisional certificate for the producer offset to an applicant, the film authority may ask the applicant, in writing, to provide that information to the authority.

(2) The request must specify:

(a) the information required by the film authority (the additional information); and

(b) the period within which the information must be provided to the film authority (the notification period).

(3) An applicant may ask the film authority to extend the notification period.

(4) A request under subrule (3) must be made:

(a) in writing; and

(b) within 28 days of the applicant’s receipt of the request under subrule (1).

(5) If a request is made by an applicant under subrule (3), the film authority may extend the notification period.

(6) If an applicant does not provide the additional information within the notification period, or within the notification period as extended under subrule (5), the film authority may refuse to issue a provisional certificate to the applicant.

15 Refusal to issue provisional certificate

The film authority may refuse to issue a provisional certificate for the film if it is not satisfied that the conditions set out in subsections 376-65 (2) to (6) of the Act will be met, or are likely to be met, if the film is completed in accordance with the information supplied in the application.

Note: The film authority may refuse to issue a provisional certificate on other grounds. For example, the Board may refuse to issue a provisional certificate under subrule 14(6) where the applicant does not provide additional information within the notification period or extended notification period.

16 Notice of refusal to issue provisional certificate

(1) If the film authority decides not to issue a provisional certificate for the producer offset for a film, the film authority must give the applicant written notice of the decision.

(2) The written notice must set out each condition specified in section 376-65 of the Act that the film authority was not satisfied would be met, or likely to be met, if the film was completed in accordance with the information specified in the application.

(3) The film authority must give the written notice to the applicant no later than 28 days after the film authority’s decision not to issue the provisional certificate.

17 Issue of provisional certificate

(1) The film authority must issue a provisional certificate for the film to the applicant if it is satisfied that the conditions set out in subsections 376-65 (2) to (6) of the Act will be met, or are likely to be met, if the film is completed in accordance with the information supplied in the application.

(2) A provisional certificate is subject to any condition specified by the film authority in the certificate.

18 Content of provisional certificate

(1) The provisional certificate must state that the film authority is satisfied that the conditions set out in subsections 376-65(2) to (6) of the Act will be met or are likely to be met, if the film is completed in accordance with:

(a) the information supplied in the application; and

(b) the conditions (if any) specified in the provisional certificate.

(2) A provisional certificate must also state that it:

(a) does not entitle an applicant to claim a tax offset under Division 376 of the Act; and

(b) does not prevent a decision by the film authority to refuse to grant a certificate under Division 376 of the Act; and

(c) is not a guarantee that the film authority will issue a certificate to the applicant under section 376-65 of the Act.

Note: A provisional certificate should also identify any condition that the film authority specifies that the certificate will be subject to, under subrule 17(2).

19 Effect of provisional certificate

(1) A provisional certificate for the producer offset:

(a) does not entitle an applicant to claim a tax offset under Division 376 of the Act; and

(b) does not prevent a decision by the film authority to refuse to grant a certificate under Division 376 of the Act; and

(c) is not a guarantee that the film authority will issue a certificate to the applicant under section 376-65 of the Act.

Part 3—Certificates for the producer offset

20 Definition for Part 3

In this Part:

applicant means a company that has applied for a certificate for the producer offset in accordance with this Part.

21 Form of application for certificate for the producer offset

Information in application

(1) An application for a certificate for the producer offset must:

(a) be made to the film authority in writing; and

(b) include the information specified in clauses 1.1 to 2.32 and Division 3 of Part A of Schedule 2; and

(2) If the film is a series, or a season of a series, the application must also include:

(a) the information specified in clauses 2.33 and 2.34 of Part A of Schedule 2; and

(b) if the series or season is similar to another series – the information specified in clause 2.35 of Part A of Schedule 2.

Documents attached to application

(3) The following documents must be attached to the application:

(a) if the film is an official co-production – the documents specified in Part B of Schedule 2;

(b) if the film is not an official co-production – the documents specified in Part B of Schedule 2, other than the documents specified in clause 1.5 of that Part;

(c) an expenditure statement, prepared in accordance with rule 28, for the total film expenditure, and the estimated qualifying Australian production expenditure, on the film;

(d) an auditor’s statement that:

(i) provides audited figures for:

(A) qualifying Australian production expenditure; and

(B) total film expenditure; and

(ii) includes a statement that the audit was conducted in compliance with rule 30; and

(iii) is signed by a person who:

(A) is a registered company auditor; and

(B) is not an officer, employee or partner of the applicant or of a body corporate that is a related body corporate in relation to the applicant;

(e) a completed budget spreadsheet, in the form approved by the film authority.

(4) If expenditure incurred to acquire copyright, or a licence in relation to copyright, in a pre-existing work for use in the film is claimed, by the applicant, as estimated qualifying Australian production expenditure under item 2 of the table in subsection 376-150(1) of the Act, the following documents must also be attached to the application:

(a) evidence that the copyright is held by an Australian resident;

(b) proof of the acquisition of the copyright or the licence (including any agreement in relation to the acquisition).

(5) If the expenditure statement contains an amount of estimated qualifying Australian production expenditure that has been translated into Australian currency using the special translation rule in item 9 or 9B of the table in subsection 960-50(6) of the Act, a foreign currency statement, prepared in accordance with rule 29, must also be attached to the application.

Waiver of requirement

(6) The film authority may waive a requirement specified in this rule for an application.

22 Delivery of application for certificate for the producer offset

An application for a certificate for the producer offset must be sent to the film authority.

23 Adjustment of fee for application for provisional certificate

(1) This rule applies if a company makes an application for a certificate for the producer offset and:

(a) the company holds a provisional certificate in relation to the film; and

(b) the total film expenditure of the film (excluding GST) when the application for a certificate for the producer offset is made (the new total) is higher than the total film expenditure of the film (excluding GST) that was provided in the application for the provisional certificate; and

(c) the application fee that was worked out under subrules 11(2) or (3) would have been higher if the new total had been taken into account.

(2) The film authority may notify the applicant, in writing that an additional fee worked out in accordance with subrule (3), is payable for the service.

(3) The additional fee is the difference between the application fee that was paid for in relation to the provisional certificate and the application fee that would have been payable in relation to the provisional certificate had the new total been used to calculate the application fee at the time the application for the provisional certificate was made.

24 Consideration of application for certificate for the producer offset and other information

(1) In determining whether or not to issue a certificate for the producer offset to the applicant, the film authority:

(a) may seek information or advice from any person or source; and

(b) may take into account the knowledge and experience of:

(i) the members of the board of the film authority; and

(ii) employees of the film authority; and

(i) the application and attached documents;

(ii) any written report requested by the film authority under subrule (2) and any written submission made by the applicant in response to that report;

(iii) any additional information provided by the applicant under rule 25;

(iv) any other relevant information or advice obtained by the film authority.

(2) Without limiting paragraph (1)(a), the film authority may ask an independent line producer to provide a written report to the film authority about any matter that is relevant to:

(a) determining whether the applicant either carried out, or made the arrangements for the carrying out of, all the activities that were necessary for the making of the film; or

(b) whether a condition set out in subsections 376-65(2) to (6) of the Act has been met.

(3) If a request made under subrule (2) relates to the conditions set out in subsection 376-65(6) of the Act, the report may include advice about any of the following matters:

(a) whether the applicant’s expenditure statement is commercially reasonable;

(b) whether specific items claimed in the applicant’s expenditure statement are reasonably attributable to the estimated qualifying Australian production expenditure on the film;

(c) whether costs that are charged for specific items indicate that the parties to the transaction were dealing with each other at arm’s length.

(4) If the film authority intends to use information or advice from a third party to support a decision to refuse to issue a certificate for the producer offset to an applicant, the film authority must give the applicant reasonable opportunity to comment on the substance of that information or advice.

(5) If the film authority requests that an independent line producer provide the film authority with a written report under subrule (2), the authority must:

(a) give a copy of the report to the applicant to whom it relates as soon as practicable; and

(b) give the applicant reasonable opportunity to make a written submission to the film authority in response the report.

25 Film authority may request additional information from applicant

(1) If, in the opinion of the film authority, it requires additional information in order to decide whether or not to issue a certificate for the producer offset to an applicant, the film authority may ask the applicant, in writing, to provide that information to the film authority.

(2) The request must specify:

(a) the information required by the film authority (the additional information); and

(b) the period within which the information must be provided to the film authority (the notification period).

(3) An applicant may ask the film authority to extend the notification period.

(4) A request under subrule (3) must be made:

(a) in writing; and

(b) within 28 days of the applicant’s receipt of the request under subrule (1).

(5) If a request is made by an applicant under subrule (3), the film authority may extend the notification period.

Part 4—Expenditure statements and foreign currency statements

26 Definition for Part 4

In this Part:

applicant means a company that has applied, or that intends to apply, for a provisional certificate, or a certificate, for the producer offset.

27 Expenditure statements for provisional certificates

(1) For paragraph 9(4)(c), an expenditure statement for a provisional certificate for the producer offset must comply with subrules (2) to (6).

(2) An expenditure statement must:

(a) distinguish expenditure that has been, or will be, incurred on film production activity carried out in Australia from expenditure that has been, or will be, incurred on film production activity carried out outside Australia; and

(b) specify any estimated qualifying Australian production expenditure claimed under item 2 of the table in subsection 376-170(2) of the Act (expenditure for travel to Australia and other countries); and

(3) An expenditure statement must also include:

(a) a statement of the estimated qualifying Australian production expenditure, and the total film expenditure, on the film; and

(b) a description of each budget item; and

(d) details of each service provider by budget item; and

(e) details of the location in which, and the period over which, each service or good has been, or will be, provided; and

(f) details of the location of any land to be used in making the film, and the period of use of the land.

(4) An amount in an expenditure statement must be expressed in Australian currency.

(5) For the purposes of an expenditure statement, an amount in foreign currency that is relevant for a purpose mentioned in column 2 of item 9 of the table in subsection 960-50(6) of the Act must be translated into Australian currency using the special translation rule in that item as if:

(a) a reference in that item to qualifying Australian production expenditure were a reference to estimated qualifying Australian production expenditure; and

(b) a reference to the time when principal photography commences or production of the animated image commences were a reference to the date estimated by the applicant for paragraph 2.4(a) or (b) (as applicable) of Part A of Schedule 1.

(6) If an expenditure statement includes an amount in foreign currency that has been translated into Australian currency using the special translation rule in item 9 of the table in subsection 960-50(6) of the Act, as applied in accordance with subrule (5), the expenditure statement must also include the estimated exchange rate used to translate the amount.

28 Expenditure statements for certificates for the producer offset

(1) For paragraph 21(3)(c), an expenditure statement for a certificate for the producer offset must comply with subrules (2) to (8).

(2) An expenditure statement must:

(a) distinguish expenditure incurred on film production activity carried out in Australia from expenditure incurred on film production activity carried out outside Australia; and

(b) specify any estimated qualifying Australian production expenditure claimed under an item of the table in subsection 376-150(1) or 376-170(2) of the Act; and

(3) If the film is an official co-production, the expenditure statement must also specify any estimated qualifying Australian production expenditure claimed by the applicant under subsection 376-170(1) of the Act (expenditure incurred in a foreign country).

(4) If the development expenditure on the film or remuneration provided to the principal director, producers or the principal cast associated with the film, is claimed by the applicant as estimated qualifying Australian production expenditure, the expenditure statement must also specify:

(a) the total amount of any development expenditure claimed as estimated qualifying Australian production expenditure; and

(b) the total amount of any such remuneration claimed as estimated qualifying Australian production expenditure; and

(c) the sum of the amounts mentioned in paragraphs (a) and (b), expressed as a percentage of the total film expenditure claimed by the applicant.

(5) If any of the expenditure on the film was paid for with development assistance received from a body listed in paragraph 376-170(4)(a) of the Act, the expenditure statement must also specify:

(a) the expenditure that was paid for with the development assistance; and

(b) whether the amount or value of the development assistance has been repaid.

(6) An expenditure statement must also include:

(a) a statement of the estimated qualifying Australian production expenditure, and the total film expenditure, on the film; and

(b) a description of each budget item; and

(d) details of each service provider by budget item; and

(e) details of the location in which, and the period over which, each service or good was provided; and

(f) details of the location of any land used in making the film, and the period of use of the land.

(7) An amount in an expenditure statement must be expressed in Australian currency.

(8) For the purposes of an expenditure statement, an amount in foreign currency that is relevant for a purpose mentioned in column 2 of item 9 or 9B of the table in subsection 960-50(6) of the Act must be translated into Australian currency using the special translation rule in the relevant item as if a reference in that item to qualifying Australian production expenditure were a reference to estimated qualifying Australian production expenditure.

29 Foreign currency statement for certificates for the producer offset

For subrule 21(5), a foreign currency statement for a certificate for the producer offset must set out:

(a) each amount, expressed in the relevant foreign currency, of estimated qualifying Australian production expenditure that has been expended in a foreign currency (the foreign expenditure amount); and

(b) for a foreign expenditure amount that is to be translated into Australian currency using the special translation rule in item 9 of the table in subsection 960-50(6) of the Act, as applied in accordance with subrule 28(8) (an item 9 foreign expenditure amount):

(i) the amount, expressed in Australian currency; and

(ii) the sum of all of the item 9 foreign expenditure amounts, expressed in Australian currency; and

(c) for a foreign expenditure amount that is to be translated into Australian currency in accordance with the special translation rule in item 9B of the table in subsection 960-50(6) of the Act, as applied in accordance with subrule 28(8) (an item 9B foreign expenditure amount):

(i) the amount, expressed in Australian currency; and

(ii) the sum of all of the item 9B foreign expenditure amounts, expressed in Australian currency.

Part 5—Audit requirements

30 Conduct of audit

A company that has applied, or that intends to apply, for a certificate for the producer offset must ensure that an audit that is conducted for paragraph 21(3)(d) is conducted in accordance with all applicable accounting standards, including any standards relating to the independence of auditors.

Part 6—Transitional provisions

31 Definition for Part 6

In this Part:

2007 rules means the Producer Offset Rules 2007, as in force immediately before the commencement of this instrument.

32 Application of the 2007 rules

The 2007 rules continue to apply in relation to:

(a) an application for a provisional certificate for the producer offset made under rule 6 of the 2007 rules; or

(b) a provisional certificate for the producer offset issued under rule 13 of the 2007 rules; or

before the commencement of this instrument.

Schedule 1—Information and documents for an application for a provisional certificate

Note: See rule 9.

Part A Information to be included in an application for a provisional certificate

Division 1—Information about the applicant

1.1 Registered name of the company; and

1.2 ABN of the company; and

1.3 for a company that is incorporated in a State or Territory – the State or Territory in which the company is incorporated; and

1.4 for a company that is not incorporated in a State or Territory — the place in which the company is incorporated; and

1.5 registered address of the company; and

1.6 for a company that is a foreign resident — details of the company’s permanent establishment in Australia; and

1.7 names and addresses of company directors; and

1.8 details of the contact person for the application, including the following details:

(a) name;

(b) office or title;

(d) business address;

(e) mobile;

(g) email; and

1.9 The applicant’s level of responsibility for the making of the film.

Division 2—Information about the film

General information

2.1 Working title of the film;

2.2 Format of the film;

Note: See paragraph 376-65(2)(c) of the Act.

2.3 Estimated duration of the film, in:

(a) running time (minutes); and

(b) for a film other than a feature film — commercial hours;

2.4 Estimated date of commencement of:

(a) for an animated film — the production of animated images; or

(b) otherwise — principal photography on the film.

2.5 Estimated date of completion of the film.

Subject matter of the film

2.6 Synopsis of the film.

Note: If the film is a series, a synopsis of the series must be provided. If the film is a season of a series, a synopsis of the season must be provided

2.7 Nationality of the principal characters in the film.

2.8 Any settings in the film that are not Australian settings (including any setting that will be filmed in Australia but that will be presented as a setting that is outside of Australia).

2.9 The proportion of the film that will be set outside of Australia (including any part of the film that will be filmed in Australia but that will be presented as being set outside of Australia).

The place where the film was made

2.10 Details of:

(a) each stage of the production; and

(b) the location of each stage of the production.

2.11 For any stage of the production that will take place outside of Australia, the reason for the location of the stage.

Details of persons who will take part in the making of the film

2.12 For each key member of the cast:

(a) name; and

(b) nationality; and

2.13 For each key member of the production personnel:

(a) name; and

(b) nationality; and

2.14 For a person who has creative control over the production:

(a) the name, nationality and details of residency of that person; and

(b) details of the creative control held by that person.

2.15 For a person who will benefit from profits recouped from the film:

(a) the name, nationality and details of residency of that person; and

(b) details of the benefit to be obtained by the person.

2.16 For each person who owns copyright in the film:

(a) name; and

(b) nationality; and

2.17 For each person (if any) who is a beneficial owner of shares in the applicant company, his or her:

(a) name; and

(b) nationality; and

2.18 Details of:

(a) the chain of title and underlying rights in the screenplay for the film, including the source material (if any); and

(b) the nationality of each person cited in relation to the matters in paragraph (a).

Financial information

2.19 Whether a deduction has been claimed under Division 10B of Part III of the Income Tax Assessment Act 1936 in relation to a unit of industrial property that relates to copyright in the film.

2.20 Whether a provisional certificate, or a final certificate, has been issued at any time under Division 10BA of Part III of the Income Tax Assessment Act 1936 in relation to the film (whether or not the certificate is still in force).

2.21 Whether a deduction has been claimed, or will be claimed, under Division 10BA of Part III of the Income Tax Assessment Act 1936 in relation to the film.

2.22 Whether:

(a) the applicant, or another person, has applied for:

(i) a certificate for the location offset for the film under subsection 376‑230 (1) of the Act; or

(ii) a certificate for the PDV offset for the film under subsection 376‑230 (2) of the Act; or

(b) a certificate for the film has been issued at any time under section 376‑20 of the Act (a certificate for the location offset) or under section 376‑45 of the Act (a certificate for the PDV offset) (whether or not the certificate is still in force).

2.23 Whether development assistance or production assistance for the film has been received by the applicant, or by anyone else, from a Commonwealth government agency or a State or Territory government agency.

2.24 For any development assistance or production assistance described in clause 2.23 that has been received:

(a) the amount or value of that assistance; and

(b) whether it has been, or will be, repaid (in full or in part).

2.25 Whether production assistance (within the meaning of paragraph 376‑55 (4) (f) of the Act) for the film has been received from:

(a) the Film Finance Corporation Australia Limited; or

(b) Film Australia Limited; or

(d) the Australian Film, Television and Radio School.

2.26 For any production assistance described in clause 2.25 that has been received:

(a) the amount or value of that assistance; and

(b) whether it has been, or will be, repaid (in full or in part).

2.27 Whether the company, or someone else, has deducted money paid for shares in a film licensed investment company under Subdivision 375‑H of the Act, if the film licensed investment company has invested in the film.

2.28 For any money described in clause 2.27 that has been deducted — the amount of money deducted.

2.29 Whether the applicant is likely to incur expenditure on the film as a foreign resident.

2.30 For any expenditure described in clause 2.29:

(a) the estimated total amount of the expenditure; and

(b) the period or periods during which the expenditure was incurred; and

(c) whether, during the whole or a part of a period mentioned in paragraph (b), the applicant did not have a permanent establishment in Australia or an ABN.

Further information required if the film is a series or a season of a series

2.31 The number of previous episodes in the series (if any).

2.32 Whether the series has substantially different characters, settings, production locations and individuals involved in the making of the series than any other series.

2.33 Details of creative similarities and differences between the current series or season and any previous series.

Division 3—Other information

3.1 Details of the production company for the film, including the following details:

(a) registered name of the production company;

(b) ABN of the production company;

(d) names and addresses of directors of the production company.

3.2 For any provider of goods or services that will be used in the making of the film who is:

(a) an associate of the applicant; or

(b) an associate of a company that is an associate of the applicant;

the details of the provider.

3.3 Details of any company that is an outgoing company in relation to the film.

Part B Documents to be attached to an application for a provisional certificate

1.1 A statutory declaration stating:

(a) that it is made for rule 9; and

(b) that:

(i) the information contained in the application for the provisional certificate; and

(ii) each document attached to the application;

is correct and true in every particular.

1.2 Evidence, if it is available, that:

(a) for an applicant that is an Australian resident — the applicant is an Australian resident; or

(b) for an applicant that is not an Australian resident — the applicant has:

(i) a permanent establishment in Australia; and

(ii) an ABN.

1.3 For a film that is an official co-production, evidence from the Commonwealth (or the relevant Commonwealth authority) that the film is an official co-production.

Schedule 2 Information and documents for an application for a certificate for the producer offset

Note: See rule 21.

Part A Information to be included in an application for a certificate for the producer offset

Division 1—Information about the applicant

1.1 Registered name of the company.

1.2 ABN of the company.

1.3 For a company that is incorporated in a State or Territory — the State or Territory in which the company is incorporated.

1.4 For a company that is not incorporated in a State or Territory — the place in which the company is incorporated.

1.5 Registered address of the company.

1.6 For a company that is a foreign resident — details of the company’s permanent establishment in Australia.

1.7 Names and addresses of company directors.

1.8 Details of the contact person for the application, including the following details:

 name

 office or title

 telephone

 business address

 mobile

 email.

1.9 The applicant’s level of responsibility for the making of the film.

Note: The film authority must be satisfied that the applicant either carried out, or made the arrangements for the carrying out of, all the activities that were necessary for the making of the film (see paragraph 376‑65 (1) (a) of the Act).

Division 2—Information about the film

General information

2.1 Title of the film.

2.2 Format of the film.

Note: See paragraph 376‑65 (2) (c) of the Act.

2.3 Duration of:

(a) for a film that is a series, or a season of a series — each episode of the film, in:

(i) running time (minutes); and

(ii) commercial hours; or

(b) for a film that is not a feature film and is not covered by paragraph (a) — the film, in:

(i) running time (minutes); and

(ii) commercial hours; or

2.4 Date of commencement of:

(a) for an animated film — the production of animated images; or

(b) otherwise — principal photography on the film.

2.5 Date of completion of the film.

Subject matter of the film

2.6 A synopsis of:

(a) for a film that is a series, or a season of a series — each episode of the film; or

(b) otherwise — the film.

2.7 Nationality of the principal characters in the film.

2.8 Any settings in the film that are not Australian settings (including any setting that was filmed in Australia but that is presented as a setting that is outside Australia).

2.9 The proportion of the film that is set outside Australia (including any part of the film that was filmed in Australia but that is presented as being set outside Australia).

The place where the film was made

2.10 Details of:

(a) each stage of the production; and

(b) the location of each stage of the production.

2.11 For any stage of the production that took place outside Australia, the reason for the location of the stage.

Details of persons who took part in the making of the film

2.12 For each key member of the cast:

(a) name; and

(b) nationality; and

2.13 For each key member of the production personnel:

(a) name; and

(b) nationality; and

2.14 For a person who has creative control over the production:

(a) the name, nationality and details of residency of that person; and

(b) details of the creative control held by that person.

2.15 For a person who will benefit from profits recouped from the film:

(a) the name, nationality and details of residency of that person; and

(b) details of the benefit to be obtained by the person.

2.16 For each person who owns copyright in the film:

(a) name; and

(b) nationality; and

2.17 For each person (if any) who is a beneficial owner of shares in the applicant company, his or her:

(a) name; and

(b) nationality; and

2.18 Details of:

(a) the chain of title and underlying rights in the screenplay for the film, including the source material (if any); and

(b) the nationality of each person cited in relation to the matters in paragraph (a).

Financial information

2.19 Dates for:

(a) the start of estimated qualifying Australian production expenditure on the film; and

(b) the end of estimated qualifying Australian production expenditure on the film.

2.20 For a film other than a feature film — estimated qualifying Australian production expenditure on the film (in Australian dollars) divided by the running time of the film (in hours).

2.21 Whether a deduction has been claimed under Division 10B of Part III of the Income Tax Assessment Act 1936 in relation to a unit of industrial property that relates to copyright in the film.

2.22 Whether a provisional certificate, or a final certificate, has been issued at any time under Division 10BA of Part III of the Income Tax Assessment Act 1936 in relation to the film (whether or not the certificate is still in force).

2.23 Whether a deduction has been claimed, or will be claimed, under Division 10BA of Part III of the Income Tax Assessment Act 1936 in relation to the film.

2.24 Whether:

(a) the applicant, or another person, has applied for:

(i) a certificate for the location offset for the film under subsection 376‑230 (1) of the Act; or

(ii) a certificate for the PDV offset for the film under subsection 376‑230 (2) of the Act; or

2.25 Whether development assistance or production assistance for the film has been received by the applicant, or by anyone else, from a Commonwealth government agency or a State or Territory government agency.

2.26 For any development assistance or production assistance described in clause 2.25 that has been received:

(a) the amount or value of that assistance; and

(b) whether it has been, or will be, repaid (in full or in part).

2.27 Whether production assistance (within the meaning of paragraph 376‑55 (4) (f) of the Act) for the film has been received from:

(a) the Film Finance Corporation Australia Limited; or

(b) Film Australia Limited; or

(d) the Australian Film, Television and Radio School.

2.28 For any production assistance described in clause 2.27 that has been received:

(a) the amount or value of that assistance; and

(b) whether it has been, or will be, repaid (in full or in part).

2.29 Whether the company, or someone else, has deducted money paid for shares in a film licensed investment company under Subdivision 375‑H of the Act, if the film licensed investment company has invested in the film.

2.30 For any money described in clause 2.29 that has been deducted — the amount of money deducted.

2.31 Whether the applicant incurred expenditure on the film as a foreign resident.

2.32 For any expenditure described in clause 2.31:

(a) the estimated total amount of the expenditure; and

(b) the period or periods during which the expenditure was incurred; and

(c) whether, during the whole or a part of a period mentioned in paragraph (b), the applicant did not have a permanent establishment in Australia or an ABN.

Further information required if the film is a series or a season of a series

2.33 The number of previous episodes in the series (if any).

2.34 Whether the series has substantially different characters, settings, production locations and individuals involved in the making of the series than any other series.

2.35 Details of creative similarities and differences between the current series or season and any previous series.

Division 3—Other information

3.1 Details of the production company for the film, including the following details:

(a) registered name of the production company

(b) ABN of the production company

(d) names and addresses of directors of the production company.

3.2 For any provider of goods or services that are used in the making of the film who is:

(a) an associate of the applicant; or

(b) an associate of a company that is an associate of the applicant;

the details of the provider.

3.3 Details of any company that is an outgoing company in relation to the film.

Part B Documents to be attached to an application for a certificate for the producer offset

1.1 A statutory declaration stating:

(a) that it is made for rule 21; and

(b) that:

(i) the information contained in the application for the certificate; and

(ii) each document attached to the application;

is correct and true in every particular.

1.2 Details of:

(a) fees; and

(b) advances that are not recoverable from the payee; and

(i) were paid to cast members before the film’s completion; and

(ii) are included in the estimated qualifying Australian production expenditure claimed by the applicant for the producer offset.

1.3 Evidence that:

(a) for an applicant who is an Australian resident — the applicant is an Australian resident; or

(b) for an applicant who is not an Australian resident — the applicant has:

(i) a permanent establishment in Australia; and

(ii) an ABN.

1.4 Any agreement relating to:

(a) the responsibility of the applicant for all the activities that were necessary for the making of the film; and

(b) the establishment of the applicant company; and

(d) the distribution or exhibition of the completed film.

Examples for paragraph (d)

1 A deal memorandum.

2 A letter of confirmation, on official letterhead, from the distributor.

1.5 For a film that is an official co‑production:

(a) a copy of the agreement between the co‑producers of the film; and

(b) evidence from the Commonwealth (or the relevant Commonwealth authority) and from the relevant foreign country (or the relevant authority) that the film is an official co‑production.

Schedule 3—Repeals

Producer Offset Rules 2007

1 The whole of the instrument

Repeal the instrument.

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Producer Offset Rules 2018

I, Graeme Mason, Chief Executive Officer of Screen Australia, make the following instrument.

Dated 24 January 2018

Graeme Mason

Chief Executive Officer of Screen Australia

Contents

Part 1—Preliminary

1 Name

2 Commencement

3 Authority

4 Purpose of this instrument

5 Schedules

6 Definitions

Part 2—Provisional certificates for the producer offset

7 Definition for Part 2

8 Application for provisional certificate

9 Form of application for provisional certificate

10 Delivery of application for provisional certificate

11 Fee for application for provisional certificate

12 Indexation factor

13 Film authority to consider application for provisional certificate

14 Film authority may request additional information from applicant

15 Refusal to issue provisional certificate

16 Notice of refusal to issue provisional certificate

17 Issue of provisional certificate

18 Content of provisional certificate

19 Effect of provisional certificate

Part 3—Certificates for the producer offset

20 Definition for Part 3

21 Form of application for certificate for the producer offset

22 Delivery of application for certificate for the producer offset

23 Adjustment of fee for application for provisional certificate

24 Consideration of application for certificate for the producer offset and other information

25 Film authority may request additional information from applicant

Part 4—Expenditure statements and foreign currency statements

26 Definition for Part 4

27 Expenditure statements for provisional certificates

28 Expenditure statements for certificates for the producer offset

The instrument turns key statutory concepts from Division 376 of the Act into operational procedures and documentary requirements. Important concepts defined or operationalised by the Rules include:

Applicant and scope: For each Part the instrument defines "applicant" as the company making the relevant application (rules 7 and 20). Eligibility conditions reflect the Act: applicants must be Australian residents, or foreign residents with a permanent establishment and an ABN (rule 8). Rule 6(2) treats an incoming company that takes over making a film as inheriting activities and arrangements carried out by the outgoing company.
Provisional certificate versus certificate for the producer offset: The instrument separates an early-stage provisional certificate (Part 2, rules 8-19; Schedule 1) from the final certificate required to claim the tax offset (Part 3, rules 20-25; Schedule 2). A provisional certificate evidences the film authority’s view that the conditions in subsections 376-65(2)-(6) of the Act will be met or are likely to be met, subject to any conditions imposed (rules 17-18). The instrument emphasises that a provisional certificate is not itself an entitlement to the tax offset, nor a guarantee of a final certificate (rules 18(2), 19(1)).
Documentary and information requirements: The schedules list extensive information to be included in applications: company identifiers, chain of title, production stages and locations, nationality and residency of key personnel, financial history including prior certificates and claims under Division 10B/10BA of the Income Tax Assessment Act 1936, amounts and sources of development or production assistance, and detailed production budgets (Schedules 1 and 2, Parts A and B). The instrument makes statutory declaration(s) mandatory attachments (Schedule 1 Part B, clause 1.1; Schedule 2 Part B, clause 1.1).
Expenditure statements and foreign currency: Detailed rules govern expenditure statements at both provisional and certificate stages (rules 27-28). Statements must distinguish Australian production expenditure from overseas, specify items such as travel expenditure claimed under item 2 of subsection 376-170(2) of the Act, and identify amounts incurred by outgoing companies (rules 27(2) and 28(2)). Foreign currency translation must follow the special translation rule in items 9 or 9B of the table in subsection 960-50(6) of the Act when applicable, and the statement must include the exchange rate used for provisional statements (rule 27(6)) and more detailed foreign currency statements for final certificates (rule 29).
Audit and auditor independence: A final application must include an auditor’s statement providing audited figures for qualifying Australian production expenditure and total film expenditure, plus a statement that the audit complied with rule 30 (rule 21(3)(d)). The auditor must be a registered company auditor and not an officer, employee or partner of the applicant or a related body corporate (rule 21(3)(d)(iii)). Rule 30 requires audits to be conducted in accordance with all applicable accounting standards, including those relating to auditor independence.
Fees and indexation: The instrument sets an application fee schedule for the financial year starting 1 July 2017 and prescribes an indexation mechanism for subsequent years based on the All Groups Consumer Price Index (rules 11 and 12). The film authority will not consider an application unless the fee has been paid (rule 11(5)). Applicants who increase total film expenditure after they obtained a provisional certificate may be required to pay an additional fee reflecting the difference (rule 23).
Decision-making discretions and procedural safeguards: The film authority may seek information or advice from any source, take into account the board’s and staff’s knowledge and experience, and commission independent line producer reports (rules 13(2)(a)-(b), 24(1)-(2)). Where third-party information or reports are used to justify a refusal, the applicant must be given reasonable opportunity to comment and to make written submissions in response to independent line producer reports (rules 13(5)-(6), 24(4)-(5)). The film authority may waive certain documentary requirements (rules 9(5), 21(6)).
Transitional operation and repeal: The Producer Offset Rules 2007 are repealed by Schedule 3, but continue to apply to specified applications and provisional certificates made under the 2007 Rules before commencement (rules 31-32 and Schedule 3).

Each of the above concepts is implemented by specific rules and schedule items in the instrument. The Rules therefore map statutory eligibility and offset criteria into administrative processes, proof standards and operational discretions that govern who can apply, what they must show and how the film authority determines whether to issue provisional and final certificates.

The Rules affect a defined set of private and public actors through both mandated obligations and allocated decision rights.

Primary affected parties

Applicant companies: The core burden falls on companies that apply for provisional certificates or final certificates for the producer offset, defined in rules 7 and 20 as the companies that make the applications. Applicants must compile and submit the prescribed information and documents in Schedules 1 and 2, pay the application fee before the film authority will consider an application (rule 11(5)), prepare expenditure statements in accordance with rules 27 or 28, and, for final certificates, secure an audit and auditor’s statement meeting the specified conditions (rule 21(3)(d) and rule 30). Applicants who are foreign residents must demonstrate a permanent establishment in Australia and have an ABN where required (rule 8, Schedule 1 Part B clause 1.2; Schedule 2 Part B clause 1.3).
Production companies and their related parties: The Rules require disclosure of the production company, any outgoing company, and providers of goods or services that are associates of the applicant or of an associate (Schedules 1 and 2, Division 3). If a company takes over a film from another company, activities and arrangements carried out by the outgoing company are taken to have been carried out by the incoming company (rule 6(2)), shifting documentation and evidentiary duties to the incoming company.
Auditors and independent line producers: Registered company auditors engaged by applicants must be independent of the applicant and related bodies corporate (rule 21(3)(d)(iii), rule 30). The film authority may ask independent line producers to report on matters relevant to whether subsections 376-65(2)-(6) will or have been met (rules 13(3), 24(2)). Those third parties therefore have roles feeding evidence into administrative decisions; the Rules require that reports be provided to applicants and that applicants get a reasonable opportunity to respond (rules 13(6), 24(5)).
Screen Australia (the film authority): The instrument expressly assigns the film authority broad decision-making responsibilities: to consider applications, to decide whether to issue provisional and final certificates, to request additional information, to commission external reports and advice, and to impose conditions on provisional certificates (rules 13, 14, 17, 24, 25). The film authority also collects fees and has a refund rule where applicants withdraw applications before a decision (rule 11(6)-(7)).

Secondary affected parties

Cast, crew and service providers: The instrument requires disclosure of fees, advances and residuals paid to cast or other parties when they are included in estimated qualifying Australian production expenditure (Schedule 2 Part B clause 1.2). Service providers’ details by budget item and location must be included in expenditure statements (rules 27(3)(d) and 28(6)(d)), which may affect contract and invoicing practices.
Commonwealth and State agencies and co-producers: For official co-productions the Rules require evidence from the Commonwealth or relevant authorities that the film is an official co-production, and may require copies of co-production agreements (rules 9(4)(a), 21(3)(a), Schedule 1 Part B clause 1.3, Schedule 2 Part B clause 1.5).
Tax authorities and other statutory regimes: The instrument operationalises requirements that link to other tax provisions, including references to the Act’s foreign currency translation rules (subsection 960-50(6) of the Act), prior claims under Division 10B and Division 10BA of the Income Tax Assessment Act 1936, and Subdivision 375‑H. Applicants must provide information on whether prior certificates or deductions under those provisions have been made (Schedules 1 and 2, clauses 2.19-2.23).

Who pays and who decides

Who pays: Applicants pay the application fee set in rule 11 and bear the cost of audits, the preparation of expenditure statements, and any costs associated with additional material requested by the film authority (rule 21(3)(d), rule 30). If an applicant withdraws before a decision, the fee is refundable (rule 11(6)); if the film authority refuses a provisional certificate, the fee is not refundable (rule 11(7)). Applicants may also be required to pay an additional fee where final total film expenditure exceeds the amount disclosed at provisional application (rule 23).
Who decides: The film authority (Screen Australia) decides whether to issue provisional and final certificates (rules 13(1), 17(1), 24(1)). The film authority also decides whether to seek third‑party reports and further information, and whether to attach conditions to provisional certificates (rules 13(2)-(4), 14, 17(2), 24(2)-(3), 25).

Behavioural effects

Evidence and audit standards: Applicants will alter behaviour to produce detailed budgets and to ensure that auditors meet the independence criteria and audit standards mandated by rule 30 and rule 21(3)(d).
Legal and organisational arrangements: The obligation to evidence chain of title, ownership of copyright, co‑production agreements, and any development assistance or prior tax claims will influence contractual arrangements and record keeping before, during and after production (Schedules 1 and 2).
Corporate structuring: The rule treating incoming companies as having performed outgoing companies’ activities (rule 6(2)) may shape decisions about transfers of production responsibility and company takeovers.

The instrument therefore imposes procedural and documentary obligations that affect applicants, auditors, independent line producers and the film authority, and it establishes administrative levers (fees, audits, requests for information, conditional certificates) that shape production and corporate behaviour around eligibility for the producer offset.

The Rules allocate duties to applicants and to the film authority and define procedural rights for applicants. These are operationalised in the rules and schedules.

Duties on applicants

Eligibility and application form: Applicants must ensure they are eligible to apply (rule 8) and must submit written applications that include the information set out in Schedule 1 for provisional certificates (rule 9(1)(b)) or Schedule 2 for final certificates (rule 21(1)(b)), signed on behalf of the company.
Attachments and evidentiary duties: Applicants must attach specified documents, including statutory declarations attesting to the truth of the application and attachments (Schedule 1 Part B clause 1.1; Schedule 2 Part B clause 1.1), evidence of residency or permanent establishment and ABN where relevant (Schedules), expenditure statements prepared in accordance with rules 27 or 28 (rules 9(4)(c), 21(3)(c)), and, for final certificates, an auditor’s statement meeting the specified requirements (rule 21(3)(d)).
Fees and payment: Applicants must pay the application fee appropriate to the total film expenditure before the film authority will consider the application (rules 11(1), 11(5)). If the applicant increases the disclosed total film expenditure after receiving a provisional certificate and the application fee would have been higher had the new total been disclosed, an additional fee equal to the difference may be payable on notification by the film authority (rule 23).
Responding to requests: Applicants must respond to requests for additional information within the notification period specified by the film authority, or apply for an extension in writing within 28 days of receiving the request (rules 14(1)-(5), 25(1)-(5)). Failure to provide additional information within the applicable period may result in refusal (rules 14(6), 25(6)).
Audit compliance and auditor independence: For final certificates, applicants must ensure the audit is conducted under applicable accounting standards, including independence standards (rule 30). The auditor must be a registered company auditor and must not be an officer, employee or partner of the applicant or a related body corporate (rule 21(3)(d)(iii)).

Duties on the film authority

Consideration and decision: Upon receipt of an application, the film authority must consider the application and decide whether to issue a provisional certificate or a certificate for the producer offset (rules 13(1), 17(1), 24(1)). It must consider all relevant information, including the application, attached documents, any independent line producer reports, additional information supplied by the applicant, and any other advice obtained (rules 13(2)(c), 24(1)(c)).
Use of third‑party material and procedural fairness: If the film authority intends to use information or advice from a third party to support a decision to refuse a certificate, it must give the applicant a reasonable opportunity to comment on the substance of that information or advice (rules 13(5), 24(4)). When an independent line producer report is prepared, the film authority must give a copy of the report to the applicant as soon as practicable and allow reasonable opportunity to make written submissions in response (rules 13(6), 24(5)).
Notices of refusal and timeframes: Where the film authority decides not to issue a provisional certificate, it must give written notice to the applicant setting out each condition in section 376-65 of the Act that it was not satisfied would be met or likely to be met. The written notice must be given no later than 28 days after the decision not to issue the provisional certificate (rule 16(1)-(3)).
Power to waive requirements and impose conditions: The film authority may waive documentary or information requirements for an application (rules 9(5), 21(6)) and may impose conditions on a provisional certificate (rule 17(2)).

Rights of applicants

Opportunity to respond: Applicants have the right to be given reasonable opportunity to comment on third‑party information or advice used to support a refusal and to make written submissions in response to independent line producer reports (rules 13(5)-(6), 24(4)-(5)).
Refund of fee on withdrawal: Applicants are entitled to a refund of the application fee if they withdraw the application before a provisional certificate or notice of refusal is issued (rule 11(6)). If the film authority refuses to issue a provisional certificate, the application fee is not refundable (rule 11(7)).
Request for extension of notification periods: When the film authority requests additional information, applicants can ask for an extension of the notification period; the request must be made in writing within 28 days of receipt of the authority’s request (rules 14(3)-(4), 25(3)-(4)). The film authority has discretion to grant the extension (rules 14(5), 25(5)).

Other operational rights and constraints

Waiver discretion: The film authority’s capacity to waive particular documentary requirements gives applicants a possible avenue to obtain more flexible treatment in appropriate cases, but that waiver is at the film authority’s discretion (rules 9(5), 21(6)).
Provisional certificate limitations: Applicants must recognise that provisional certificates do not confer tax entitlement and do not stop the film authority later refusing a final certificate (rules 18(2), 19(1)). Provisional certificates may carry conditions (rules 17(2), 18(1)).

These duties and rights structure the administrative interaction between applicants and the film authority. The instrument makes procedural fairness mandatory in relation to the use of third‑party evidence and sets out clear administrative levers the film authority can use to control evidentiary quality and manage risk.

The instrument itself is primarily procedural and administrative. It focuses on conditions for issuing provisional certificates and final certificates for the producer offset, the documentary and audit protocols applicants must meet, and the film authority’s decision processes. The Rules do not create criminal or civil penalties within the text of the instrument; instead they provide administrative enforcement mechanisms and preconditions that affect access to the producer offset.

Administrative enforcement mechanisms

Refusal of certificates: The principal enforcement lever is the film authority’s power to refuse to issue a provisional certificate or a final certificate if it is not satisfied that the conditions in subsections 376-65(2)-(6) of the Act will be met or have been met (rule 15 for provisional certificates; rule 24 for final certificates). Refusal effectively denies access to the tax offset that depends on the certificate under Division 376 of the Act.
Procedural consequences of non‑compliance: If an applicant does not provide additional information within the notification period set by the film authority, the film authority may refuse to issue a provisional certificate or a certificate (rules 14(6), 25(6)). The requirement to pay the application fee before the application will be considered is another procedural gate, and the film authority will not consider the application unless the fee is paid (rule 11(5)). These procedural provisions make compliance prerequisites to obtaining the administrative instrument that conveys tax entitlement under the Act.
Fee non‑refund on refusal: If the film authority refuses to issue a provisional certificate, the application fee is not refundable (rule 11(7)), which imposes a financial consequence distinct from statutory penalties.

Audit and assurances

Audit requirement: A final application must include an auditor’s statement that provides audited figures for qualifying Australian production expenditure and total film expenditure and confirms the audit complied with rule 30 (rule 21(3)(d)). Rule 30 requires audits to be conducted in accordance with all applicable accounting standards, including independence standards. The audit and its independence are mechanisms by which the film authority obtains assurance over the applicant’s reported figures.

Third‑party evidence and procedural safeguards

Independent line producer reports: The film authority may commission independent line producer reports to advise on matters relevant to whether the statutory conditions will be met or have been met, including whether expenditure statements are commercially reasonable and whether parties to transactions are dealing at arm’s length (rules 13(3)-(4), 24(2)-(3)). The Rules require the film authority to provide applicants with copies of such reports and to allow an opportunity to respond (rules 13(6), 24(5)). The film authority must also give applicants reasonable opportunity to comment where third‑party information is proposed to be used to support refusal (rules 13(5), 24(4)). These provisions are procedural protections but not penalties.

Statutory context and external enforcement

Interaction with other statutes: The instrument uses concepts and definitions from other legislation: it refers to the Income Tax Assessment Act 1997 for substantive offset rules, to the Corporations Act 2001 for the meaning of registered company auditor and related body corporate (rule 6(1) definitions), and to the Statutory Declarations Act 1959 for statutory declarations (rule 6(1) note, Schedule items requiring statutory declaration). Any legal penalties for making false statutory declarations, or for misrepresentations under taxation law, arise under those other statutes rather than under the Rules themselves. The instrument does not set out or quantify those external penalties.

Limits and discretion

Discretionary powers: The film authority’s broad discretion to seek any information or advice, to take into account board and staff knowledge, and to waive documentary requirements means outcomes are subject to administrative judgment (rules 13(2), 24(1), 9(5), 21(6)). The instrument also requires procedural fairness where third‑party material is used to support refusal (rules 13(5), 24(4)), balancing discretion with opportunity to respond.

In short, the Rules do not directly prescribe fines or criminal penalties. Instead, they create administrative enforcement through the film authority’s discretion to refuse certificates, through gatekeeping by fee and document requirements, through audit standards, and through the potential loss of fees on refusal. Legal penalties for false statements or non‑compliance with statutory obligations will arise under the separate statutes referenced by the instrument rather than under the Rules themselves.

The Producer Offset Rules 2018 are an instrument made under the Income Tax Assessment Act 1997 and are expressly built to operate in tandem with a number of other statutory provisions and administrative regimes. The instrument cross‑refers to provisions of the Act and to other statutes and external indices; applicants and advisers must treat the Rules as an administrative layer that operationalises the substantive tax law and interacts with corporate, audit and declaration regimes.

Primary statutory connections

Income Tax Assessment Act 1997 (the Act): The Rules are made under subsections 376-265(1) and (2) of the Act (rule 3) and repeatedly refer to Division 376 substantive provisions. They implement procedural requirements for satisfying the conditions in subsection 376‑65(2)-(6) of the Act that govern eligibility for the certificate (rules 13, 15, 17, 24). Expenditure reporting and translation requirements cross‑refer to the Act’s foreign currency translation rules in subsection 960-50(6) (rules 27(5), 27(6), 28(8), 29). The instrument also asks applicants to disclose prior tax claims under Division 10B and Division 10BA of the Income Tax Assessment Act 1936 (Schedules 1 and 2, clauses 2.19-2.23), and to indicate whether a film licensed investment company under Subdivision 375‑H has been used (Schedules 1 and 2 clauses 2.27-2.30).
Corporations Act 2001: The definitions of registered company auditor and related body corporate are taken from the Corporations Act (rule 6(1) definitions). Rule 21(3)(d)(iii) requires that the auditor who signs the auditor’s statement be a registered company auditor and not an officer, employee or partner of the applicant or a related body corporate, which invokes the Corporations Act’s auditor registration and independence framework.
Statutory Declarations Act 1959: The instrument requires statutory declarations in support of applications (Schedule 1 Part B clause 1.1; Schedule 2 Part B clause 1.1). Statutory declaration formality and legal effects are regulated by the Statutory Declarations Act, and the Rules rely on that external statute to give legal effect to required declarations.
Consumer Price Index and Australian Statistician: The indexation factor used to adjust application fees in years after 2017 draws on the All Groups Consumer Price Index, being the weighted average of the eight capital cities published by the Australian Statistician, and the Rules include a specific formula and rules for dealing with substituted published index numbers or changed CPI reference periods (rule 12).

Co‑production, Commonwealth and foreign authorities

Official co‑productions: The Rules deal explicitly with official co‑productions, requiring evidence from the Commonwealth or the relevant authority confirming the film is an official co‑production and copies of co‑producer agreements for final certificate applications (rule 9(4)(a), rule 21(3)(a), Schedule 1 Part B clause 1.3, Schedule 2 Part B clause 1.5). This creates an interaction between Screen Australia’s administrative role and the Commonwealth’s cooperation/recognition instruments in foreign co‑production agreements.
Commonwealth and State agencies: The Rules ask applicants to disclose development assistance or production assistance received from Commonwealth or State agencies and to state whether such assistance has been repaid (Schedules 1 and 2 clauses 2.23-2.26). The instrument therefore requires applicants to account for other public funding in the assessment of qualifying expenditure, which interacts with grants and assistance regimes administered by other public bodies.

Tax accounting and foreign currency translation

Translation rules in section 960‑50(6): For amounts in foreign currency that fall under the Act’s special translation rules (items 9 and 9B of the table in subsection 960‑50(6)), the Rules require applicants to apply the same special translation rules when preparing expenditure statements and to provide specified foreign currency statements for final certificates (rules 27(5)-(6), 28(8), 29). The instrument therefore ties administrative evidence to statutory tax‑accounting methodologies.

Procedural and standards interactions

Accounting standards and auditor independence: Rule 30 requires audits to be conducted in accordance with all applicable accounting standards, including those relating to auditor independence. Those auditing standards sit outside the Rules and are likely to be derived from Corporations Act rules and professional accountancy standards, which applicants must follow.
Other tax provisions: Schedules 1 and 2 require applicants to disclose prior deductions and certificates under other tax regimes such as Division 10B and Division 10BA of the Income Tax Assessment Act 1936 and Subdivision 375‑H of the Act. Those disclosures will affect tax positions and administrative assessment but any legal consequences for prior claims are governed by the respective statutes and not by the Rules themselves.

Transitional interaction and repeal of previous rules

Producer Offset Rules 2007: The instrument repeals the 2007 Rules (Schedule 3) but keeps the 2007 Rules operative for specified applications and provisional certificates made under the 2007 Rules before commencement (rules 31-32). This sets out a temporal interaction between instruments to avoid retrospective application to in-flight applications.

Practical consequence

The Rules do not operate in isolation. They require applicants to comply not only with the film authority’s evidentiary and procedural requirements, but also with external statutory schemes and professional standards. For example, an auditor signing the required statement must be registered under the Corporations Act and must conduct the audit in accordance with applicable accounting standards. Foreign currency reporting must be consistent with the Act’s translation rules. Chain of title and statutory declarations are governed by separate statutory frameworks. The instrument therefore acts as an administrative bridge between Division 376’s substantive entitlement criteria and a web of corporate, audit and tax‑accounting laws and practices.

The Producer Offset Rules 2018 set out their own provenance and immediate amendment effect. Key points from the instrument about amendment history and status are:

Date of making and authority: The instrument is dated 24 January 2018 and is signed by Graeme Mason as Chief Executive Officer of Screen Australia. It is made under subsections 376‑265(1) and (2) of the Income Tax Assessment Act 1997 (rule 3 and opening text).
Commencement: The instrument comes into force on the day after it is registered (rule 2). The instrument itself records the date it was made and the signature of the CEO.
Repeal of previous instrument: Schedule 3 repeals the Producer Offset Rules 2007 in their entirety. Schedule 3 states: "The whole of the instrument, Repeal the instrument." This is the explicit repeal mechanism (Schedule 3).
Transitional provision preserving prior applications: Despite the repeal, the instrument contains transitional provisions that preserve the application of the 2007 Rules to certain applications and provisional certificates made under the 2007 Rules before the commencement of the 2018 Rules. Rule 32 provides that the 2007 Rules continue to apply in relation to: (a) an application for a provisional certificate made under rule 6 of the 2007 Rules, (b) a provisional certificate issued under rule 13 of the 2007 Rules, or (c) an application for a certificate made under rule 17 of the 2007 Rules, if those events occurred before the commencement of the 2018 Rules. The 2007 Rules therefore remain effective for in‑flight matters specified by rule 32.
Purpose and scope of change: Rule 4 states the purpose of the instrument is to provide for the issue of provisional certificates in relation to the producer offset and to specify how applications for certificates, including provisional certificates, are to be made, under the Act. The instrument therefore replaces the procedural framework previously set out in the 2007 Rules with a new framework that reflects updated documentary, audit and procedural requirements.
No further amendments recorded in the instrument: The instrument as provided contains no further amendment items or schedules to alter other instruments beyond the repeal in Schedule 3. There is no in‑text record of earlier amendments to the 2018 Rules themselves, nor of any later amending instruments in the provided text.

Operational implication for advisers

For matters started before the commencement date, practitioners must check whether the 2007 Rules continue to apply (rule 32) and ensure the applicable requirements are followed. For matters started after commencement, the 2018 Rules apply in full.
The instrument references and relies on external statutory provisions (for example, the Act and the Corporations Act). Any later amendments to those external statutes will interact with the 2018 Rules, but the instrument itself contains no mechanism altering its own provisions except by subsequent instrument-making under the Act.

In summary, the 2018 Rules were made on 24 January 2018, commence the day after registration, repeal the 2007 Rules, but preserve the 2007 Rules’ application to specified pre‑existing applications and certificates.

The text of the Producer Offset Rules 2018 as provided contains no litigation history. The instrument itself does not reference judicial decisions, appeal routes, case law or adjudicated disputes. It also does not set out administrative review or merits review procedures within the instrument text.

Procedural and legal recourse considerations implicit in the instrument

Administrative decision-making: The film authority has discretion to issue or refuse provisional and final certificates (rules 13, 15, 17, 24). Where a refusal occurs, the instrument requires that the film authority give written notice to the applicant specifying relevant conditions of section 376‑65 that it was not satisfied would be met (rule 16(2)-(3)). That notice is an administrative decision note which typically is the subject of any external review processes under the Administrative Decisions (Judicial Review) Act 1977 or internal merits review mechanisms, although the instrument does not itself prescribe review rights or appeal routes.
Use of third‑party reports and procedural fairness: The instrument imposes procedural protections where third‑party material is used to support a refusal,applicants must be given reasonable opportunity to comment and, in the case of independent line producer reports, copies and response opportunities must be provided (rules 13(5)-(6), 24(4)-(5)). Those procedural protections reduce, but do not eliminate, the prospect of litigation grounded on procedural fairness if applicants can demonstrate failure to accord a fair opportunity to respond. The instrument itself is a repository of procedural requirements that may be relied on in any judicial review challenge, but it does not set out or preclude remedies.
Audit outcomes and disputes: Audits and auditor statements required by rule 21(3)(d) and rule 30 produce figures that feed into the film authority decision. Disputes about the adequacy of an audit or the interpretation of audited figures would implicate auditing standards and may be subject to professional regulation or dispute resolution outside the instrument.

What is absent

No cases cited: The instrument names no judicial decisions; practitioners seeking litigated guidance on the application of the Rules will need to look to decisions interpreting Division 376 of the Act or to administrative decisions involving Screen Australia, if any exist.
No stated review or appeal mechanism within the Rules: The instrument does not create internal merits review pathways or state the availability of external review in particular tribunals or courts. Any review routes therefore depend on general administrative law principles and the broader statutory landscape.

If litigation or administrative review is being considered, the relevant starting points are the Act’s substantive provisions, the film authority’s decisions under the Rules, the statutory notice requirements in rule 16 (and comparable requirements for final certificates), and broader administrative law remedies. The Rules themselves do not provide a litigation catalogue or precedent list.

Practical traps for applicants and advisers are embedded in the instrument’s procedural specifics. The following points are drawn directly from the Rules and identify areas where procedural or documentary missteps can produce adverse administrative outcomes.

Fee payment as a precondition to consideration (rule 11(5)) The film authority must not consider an application unless the application fee has been paid. Failure to pay the correct fee will halt the process. The fee schedule in rule 11(2) applies for the 2017-18 financial year and the fee is indexed thereafter under rule 11(3) and rule 12. If the fee is omitted or underpaid, the application will not be considered.
Non‑refund on refusal; refund only on withdrawal before decision (rules 11(6)-(7)) An applicant who withdraws the application before a provisional certificate or notice of refusal is issued is entitled to a refund, but if the film authority refuses to issue a provisional certificate the application fee is not refundable. Applicants should therefore consider the strategic timing of withdrawal if issues are identified before decision.
Additional fee where final total exceeds provisional figure (rule 23) If a company holds a provisional certificate and later files a final application where the total film expenditure has increased such that the application fee would have been higher at provisional stage, the film authority may notify an additional fee equal to the difference. Applicants who expect significant budget increases should budget for potential top‑up fees.
Provisional certificate is not a tax entitlement or guarantee (rules 18(2), 19(1)) A provisional certificate states only that the film authority is satisfied the statutory conditions will be met or are likely to be met based on supplied information and any conditions imposed. It does not entitle the holder to claim the tax offset, nor guarantee a final certificate. Applicants must not rely on a provisional certificate as equivalent to a final certificate for tax planning.
Broad film authority discretion and the need to engage with third‑party reports (rules 13, 24) The film authority can seek information or advice from any person and commission independent line producer reports. If the authority intends to rely on such advice to refuse a certificate, it must give applicants a reasonable opportunity to comment. Nevertheless, the commission of reports and the film authority’s discretionary judgment are operational realities that can materially affect outcomes.
Strict requirements for auditor independence and audit standards (rule 21(3)(d), rule 30) The auditor must be a registered company auditor and must not be an officer, employee or partner of the applicant or a related company. The audit must comply with all applicable accounting standards, including those relating to independence. Applicants who use auditors with perceived or actual conflicts will risk their application being invalidated or challenged.
Foreign currency translation traps (rules 27(5)-(6), 28(8), 29) Where the Act’s special translation rule in subsection 960‑50(6) is applicable (items 9 or 9B), expenditure statements must translate foreign currency using that special rule. Provisional statements must include the estimated exchange rate used (rule 27(6)). Final certificate applications must include a foreign currency statement detailing amounts in foreign currency and translated Australian currency sums (rule 29). Errors in translation method or failure to include required foreign currency statements can jeopardise acceptance of qualifying Australian production expenditure.
Incoming/outgoing company treatment can import prior activity (rule 6(2)) If a company takes over the making of a film, the incoming company is taken to have carried out the outgoing company’s activities. This can import prior commitments, expenses and entitlement questions to the incoming entity. Practitioners must map pre‑existing arrangements and ensure documentary continuity.
Requirement to disclose prior tax and grant activity (Schedules 1 and 2) Applicants must disclose prior deductions under Division 10B or Division 10BA of the 1936 Act, prior certificates under Division 10BA, production assistance from listed bodies, development assistance or production assistance from Commonwealth or State agencies (Schedules 1 and 2). Failure to disclose prior assistance or prior tax treatment can undermine credibility and the film authority’s assessment.
Time limits and extension mechanics for additional information requests (rules 14, 25) When the film authority requests additional information, the request must set out the notification period. Applicants must request an extension in writing within 28 days of receipt of the request. If applicants miss the notification period and have not obtained an extension, the film authority may refuse the application. Procedural calendars should be tightly managed.
Waiver is discretionary (rules 9(5), 21(6)) The film authority may waive documentary requirements, but this is not an entitlement. Applicants should not assume waiver; where requirements are material to eligibility, failing to produce the documents where waiver is not granted will risk refusal.
Conditional provisional certificates (rules 17(2), 18(1)) Provisional certificates can be subject to conditions. Those conditions may impose further obligations or limitations on production or documentation. Applicants should review any conditions carefully, as compliance with conditions will likely be assessed in the final certificate process.
Absence of internal appeal steps in the Rules The instrument itself does not set out any appeal or merits review process. Any review avenues therefore depend on the general administrative law framework and the Act. Applicants should plan for administrative law remedies rather than an internal schematic set out in these Rules.

These "gotchas" are procedural and documentary fault lines that may cause an application to stall or be refused. Practitioners should build processes around timely fee payment, rigorous auditor selection, careful foreign translation, full disclosure of prior funding and tax treatments, and prompt responses to information requests.

Compliance with the Producer Offset Rules 2018 requires a structured sequence of steps tailored to whether an applicant applies for a provisional certificate or a final certificate. Below is a practical checklist aligned to the instrument’s provisions and schedules to guide applicants and their advisers through the required documentary, audit and procedural steps.

A. Determine eligibility (rule 8)

Confirm the applicant is an Australian resident, or a foreign resident with a permanent establishment in Australia and an ABN. Collect evidence of residency, permanent establishment and ABN (Schedule 1 Part B clause 1.2; Schedule 2 Part B clause 1.3).
If a company has taken over a production from another company, identify and prepare documentation of outgoing company activities because rule 6(2) treats those activities as undertaken by the incoming company.

B. Decide whether to seek a provisional certificate (Part 2, rules 8-19)

For early‑stage assurance, prepare a provisional application under rule 9 with information items in Schedule 1 Part A (clauses 1.1-2.30 and where applicable 2.31-2.33).
Prepare an expenditure statement compliant with rule 27. Ensure it:
- distinguishes Australian from non‑Australian production expenditure (rule 27(2)(a));
- specifies any travel expenditure claimed under item 2 of subsection 376‑170(2) (rule 27(2)(b));
- specifies any expenditure incurred by an outgoing company (rule 27(2)(c));
- includes descriptions and projected amounts for each budget item, suppliers and locations and periods (rule 27(3));
- expresses amounts in Australian currency (rule 27(4)); and
- if using the special translation rule under subsection 960‑50(6), include the estimated exchange rate used (rule 27(6)).
Attach documents listed in Schedule 1 Part B, including the statutory declaration (Schedule 1 Part B clause 1.1) and co‑production evidence where applicable (Schedule 1 Part B clause 1.3).
Pay the appropriate application fee under rule 11 before lodging. Calculate the fee based on total film expenditure excluding GST, using the 2017‑18 schedule or the indexation formula for later years (rules 11(2)-(3), rule 12).

C. Lodge the application (rule 10)

Send the completed written application and attachments to the film authority as required by rules 9(1)(a) and 10.

D. Engagement during film authority consideration (rules 13-14)

Expect the film authority to consider the application and possibly to seek independent line producer reports (rule 13). If a report is commissioned, the film authority must provide the report to the applicant and allow time for a written response (rule 13(6)).
If the film authority requests additional information, respond within the notification period or seek an extension in writing within 28 days of receipt of the request (rules 14(1)-(5)). Track deadlines carefully because failure to provide information may lead to refusal (rule 14(6)).

E. If a provisional certificate is issued (rules 17-19)

Review any conditions attached to the provisional certificate (rule 17(2)). Understand that the provisional certificate is not a claimable tax entitlement and does not guarantee a final certificate (rules 18(2), 19(1)).
Maintain documents, budgets and production records in accordance with the statements made to the film authority.

F. Prepare final certificate application (Part 3, rules 21-25)

For the certificate for the producer offset, prepare information required by Schedule 2 Part A (rule 21(1)-(2)). This is a fuller information set reflecting completed production.
Prepare an expenditure statement compliant with rule 28, including actual amounts, the division between Australian and non‑Australian expenditure, specification of any amounts claimed under the Act’s relevant items, and any amounts paid by outgoing companies (rule 28(2)-(6)).
Engage a registered company auditor who is independent of the applicant and related bodies corporate (rule 21(3)(d)(iii)). Obtain an auditor’s statement that provides audited figures for qualifying Australian production expenditure and total film expenditure and states the audit complied with rule 30 (rule 21(3)(d)(i)-(ii)). Ensure the audit follows applicable accounting standards including independence standards (rule 30).
If foreign currency translation under the special translation rule is relevant, prepare a foreign currency statement per rule 29. For final certificates, set out each foreign expenditure amount and corresponding translated amounts in Australian dollars, separated between items 9 and 9B if applicable (rule 29).
Attach required documents in Schedule 2 Part B, including statutory declaration (Schedule 2 Part B clause 1.1), details of fees, advances and residuals where included in expenditure claims (Schedule 2 Part B clause 1.2), chain of title and co‑production evidence where relevant (Schedule 2 Part B clauses 1.4-1.5).

G. Fee reconciliation and potential additional fee (rule 23)

If a provisional certificate was held and the disclosed total film expenditure rises by the time of the final application so that a larger application fee would have been payable at provisional stage, the film authority may notify an additional fee equal to the difference. Budget accordingly.

H. Responding to film authority requests and independent reports (rules 24-25)

During assessment, expect the film authority to seek reports and additional information. Provide requested material promptly or seek extensions in writing within the 28‑day window (rules 24(2)-(5), 25(1)-(5)). Ensure submissions address any independent line producer’s comments.

I. Post‑decision administrative steps

If a final certificate is issued, retain audit documentation, expenditure records and supporting documents for tax compliance and possible review. If application is refused, inspect the written notice of refusal that must identify the conditions in section 376‑65 of the Act that were not satisfied (rule 16(2) for provisional refusals), and consider administrative law remedies under general law and the applicable tax statutes.

J. Practical project management and record keeping

Keep a contemporaneous chain of title, copyright ownership and licence documents, distributor letters or deal memoranda where applicable (Schedule 2 Part B clause 1.4).
Track all sources of development or production assistance and whether assistance has been repaid, because rules require disclosure (Schedules 1 and 2 clauses 2.23-2.26).
Where services or goods are supplied by associates, prepare and record details as required (Schedules 1 and 2 Division 3 clauses 3.2-3.3).
Keep detailed records of locations and periods of provision for each budget item and supplier (rules 27(3)(d)-(f), 28(6)(d)-(f)).

K. Special situations

Official co‑productions: obtain and attach evidence from the Commonwealth or relevant authority that the film is an official co‑production and include the co‑producer agreement (Schedule 1 Part B clause 1.3; Schedule 2 Part B clause 1.5). Ensure translation and expenditure accounting for foreign spend is handled per rules 27-29.
Company changes: if production responsibility transfers between companies, map and document outgoing activities because rule 6(2) treats outgoing company activities as having been carried out by the incoming company.

L. Seek early legal and accounting input

Given the Rules’ linkage to substantive tax provisions and to auditing/corporate standards, involve tax lawyers, auditors registered under the Corporations Act, and production accountants early to ensure the evidence and audit can be produced to the film authority’s specifications.

This stepwise compliance approach aligns documentary production, audit arrangements and procedural responsiveness with the requirements in the Producer Offset Rules 2018 and reduces the risk of refusal on procedural or evidentiary grounds.

Producer Offset Rules 2018

Plain English Summary

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What it does

Current sections