Senator the Hon. George Brandis S.C.

Minister for the Arts and Sport

The Australian Parliament today passed legislation establishing an Australian Screen Production Incentive, providing more than $280 million over the next four years in generous incentives for Australian film and television productions and for offshore productions to locate to Australia.

“The passage of this legislation constitutes the most fundamental reform to Australian Government film financing in the last 25 years. It brings in a new era for the Australian film and television industry,” the Minister for the Arts and Sport, Senator George Brandis said.

The new incentives include:

• a Producer Offset which provides a 40 per cent rebate to producers of Australian films and a 20 per cent rebate for the production of other media;
• a Location Offset which provides a 15 per cent rebate to attract large-budget overseas film and television productions to Australia; and
• a PDV Offset, providing a 15 per cent rebate on post, digital and visual effects production work of over $5 million regardless of where a screen project has been shot.

A Government amendment was made to the legislation during its passage to ensure animation series with episodes of 15 commercial minutes would be eligible formats for the purposes of the Producer Offset. This amendment has addressed industry feedback that many animations, especially for children, are of shorter duration than other series.

The Producer Offset will provide the necessary impetus to grow the Australian production industry by making it easier for Australian producers to attract private investment, increase equity in their productions, and develop stable production companies.

The new Location Offset will restore Australia’s competitiveness as a destination for large-budget productions from Hollywood and Europe increasing opportunities for Australian casts and crews to work on the world’s best productions.

“The new Producer Offset will be available to all producers of Australian productions, including feature films, telemovies, series, including animated series, documentaries and short form animations,” Senator Brandis said.

“The introduction of the Producer Offset reflects the Government’s view that a sustainable and independent screen production sector is crucial in building a stronger Australian film and television production industry.

“As I announced earlier, the Government intends that the industry as a whole will be able to benefit from the incentives.

“The Government is aware of concerns from the independent production sector regarding the potential impact of the Producer Offset on the level of independent production in Australia. However, it is the Government’s expectation that the independent sector will benefit from the Producer Offset.

“It has not been the view of the Government that eligibility for the offset should be quarantined only to the independent sector, but it is certainly the view of the Government that independent producers should be beneficiaries of the Producer Offset.

“Further, the Government expects the Producer Offset will provide a real opportunity for independent producers to retain substantial equity in their productions and build stable and sustainable production companies, and should therefore increase private investor interest in the industry.

“I reiterate the Government’s firm view that it will not look favourably on any evidence that broadcasters are using the offset to reduce their licence fees, to the detriment of the independent sector,” Senator Brandis said.

The Government has agreed to commence a statutory review, within 12 months of Royal Assent for the legislation, on the impact of the new offsets on the balance between in-house and independent productions.

“I will also direct the new film agency, Screen Australia, which is to be established in mid-2008, not to provide production funding to in-house productions by broadcasters, consistent with the existing practice of the Film Finance Corporation Australia,” the Minister said.

The Australian Screen Production Incentive is part of the Australian Government’s Screen Media Support Package, worth almost $300 million over four years. For more information on the package visit www.dcita.gov.au/film.

Media contact: Travis Bell 0448 950 248

20 September 2007

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