COMMONWEALTH OF AUSTRALIA
 
Income Tax Assessment Act 1997
Acts Interpretation Act 1901
 
Location Offset Rules 2008 (Amendment No. 1 of 2012)
 
I, SIMON FINDLAY CREAN, Minister for the Arts, pursuant to subsection 376-260 (1) of the Income Tax Assessment Act 1997 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901, hereby amend the Location Offset Rules 2008 made under subsections 376-260 (2) and (3) of the Act.
 
 
Dated                          16th January                 2013
 
Signed                                               SIMON CREAN
 
 
Minister for the Arts
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1.                       Amendment
1.1.                 The Location Offset Rules 2008 (the Rules) are amended as set out in this instrument.
 
2.                       Rule 4
2.1.                 Omit definition of ‘Department’.
2.2.                 In the note at the end of Rule 4, following the dot point ‘arrangement’, insert additional dot point ‘Arts Department’.
 
3.                       References to ‘Department’
3.1.                 With the exception of the occurrence of the word ‘Department’ in the new dot point inserted in the note at Rule 4 by virtue of clause 2.2 of this instrument, omit all references in the Rules to ‘Department’ and substitute ‘Arts Department’.
 
4.                       Schedule 3
4.1.                 Omit ‘CANBERRA ACT 2601’’.
4.2.                 Omit ‘We have received all the information and documents necessary to enable us to ascertain the amount of production expenditure (as defined in subsection 995‑1 (1) of the Act) and estimated qualifying Australian production expenditure (as defined in rule 4 of the Location Offset Rules 2008)’ and insert ‘Report on the Statement of Production Expenditure. As required under the Location Offset Rules 2008 (the Rules), we have audited the accompanying Statement of Production Expenditure on the film entitled ______________________________.’ 
4.3.                 Omit ‘The applicant is responsible for the preparation of the expenditure statement. It is our responsibility to form an independent opinion, based on our examination, on the expenditure statement and to report our opinion to you.’ and insert:
‘Responsibility of the Applicant for the Statement of Production Expenditure
The Applicant is responsible for the preparation and fair presentation of the Statement of Production Expenditure and has determined that the accounting policies prescribed in the Statement of Production Expenditure are appropriate to meet the Rules.
The Applicant’s responsibility also includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the Statement of Production Expenditure that is free from material misstatement; whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.’
 
4.4.                 Omit:
‘Basis of opinion: We conducted our audit in accordance with the Australian Auditing Standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial information is free of material misstatement.
 
We have received all the information and documents necessary to enable us to ascertain the amount of estimated qualifying Australian production expenditure (as defined in rule 4 of the Location Offset Rules 2008).
 
Our work included examining, on a test basis, evidence supporting the amounts and disclosures in the expenditure statement, and the presentation of that statement.
 
On the basis of such examination, we report that, in our opinion, the total of the company’s estimated qualifying Australian production expenditure on the film is Aus $.’
 
4.5.                 Insert:
‘Auditor’s Responsibility
We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the Statement of Production Expenditure are free of material misstatement.
 
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statement of Production Expenditure. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the Statement of Production Expenditure, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Applicant’s preparation and fair presentation of the Statement of Production Expenditure in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Applicant’s internal control.
 
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Applicant, as well as evaluating the overall presentation of the Statement of Production Expenditure.   
 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
 
Independence
In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.
 
4.6.                 Insert heading ‘Auditor’s Opinion’ above the paragraph ‘in our opinion the Statement of Production Expenditure presents fairly, in all material respects, the production expenditure on the film entitled _______________________ for the period ended ____________ in accordance with generally accepted accounting principles.’
 
This instrument takes effect on the day following the day of its registration in the Federal Register of Legislative Instruments.
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