EXPLANATORY STATEMENT
Issued by the Minister for the Arts
Film Licensed Investment Company Act 2005
Acts Interpretation Act 1901
Revocation of Film Licensed Investment Company (Reporting Requirements) Determination 2005, Film Licensed Investment Company (Decision-making Criteria and Procedures) Determination 2005 and Film Licensed Investment Company (Application) Rules 2005
This explanatory statement relates to an instrument made pursuant to the Film Licensed Investment Company Act 2005 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901 entitled Revocation of Film Licensed Investment Company (Reporting Requirements) Determination 2005, Film Licensed Investment Company (Decision-making Criteria and Procedures) Determination 2005 and Film Licensed Investment Company (Application) Rules 2005. The purpose of the instrument to which this statement relates is to revoke the three instruments listed.
The instrument is a legislative instrument as defined under the Legislative Instruments Act 2005 and commences on the day after it is registered on the Federal Register of Legislative Instruments.
Legislative Authority
This legislative instrument is made pursuant to each of the sections of the Act as described below and subsection 33(3) of the Acts Interpretation Act 1901.
The Act established a scheme to promote investment in the Australian film industry by allowing a 100 per cent income tax deduction for taxpayers investing funds in the Film Licensed Investment Company (FLIC) licensed to raise capital under the Act.
Subsection 35(1) of the Act allowed the Minister to determine reporting requirements with which the company that was issued with the licence to raise concessional capital was required to comply. The Minister made the Film Licensed Investment Company (Reporting Requirements) Determination 2005 on 9 August 2005.
Subsection 9(1) of the Act states that the Minister must, by legislative instrument, determine criteria to be applied and procedures to be complied with by the Minister in deciding whether, and to whom, to grant the concessional capital licence under the FLIC scheme.
The Minister made the Film Licensed Investment Company (Decision-making Criteria and Procedures) Determination 200 on 4 August 2005.
Section 8 of the Act states that the Minister must, in writing, determine rules concerning the application process under the FLIC Scheme. The Minister made the Film Licensed Investment Company (Application) Determination on 4 August 2005.
Reasons for Revocation
In February 2009 the Government announced in the Updated Economic and Fiscal Outlook that it would undertake a review of pre-2008 Commonwealth subordinate legislation and other regulation (the Review) in order to document those regulations and other subordinate legislation which impose net costs on business and identify the scope to improve regulatory efficiency. The Department of Finance and Deregulation was tasked with the co-ordination of the Review on the Government’s behalf.
The Review identified legislative instruments administered within the Arts portfolio including all instruments relating to the now defunct FLIC Scheme. Under the FLIC Scheme a licence was issued to a single company for it to raise funds which would attract concessional tax treatment for investments in Australian film and television productions. The licence has now lapsed and the Scheme has been discontinued.
Consultation
No consultation was conducted as the FLIC scheme is now defunct and as a consequence there are no stakeholders to consult.