Boost for large budget film production in Australia
9 May 2007
Joint media release Senator Brandis & Senator Coonan
As part of the Australian Government’s $282.9 million film package announced in this year’s Budget, greater incentives will be introduced for large-budget international film and television productions to be made in Australia, strengthening our production and acting skills base and showcasing Australia to the world, the Minister for Arts and Sport, Senator the Hon George Brandis, said today.
“Since the Australian Government introduced the Refundable Film Tax Offset Scheme providing a 12.5 per cent rebate for eligible films, we have seen productions such as Superman Returns, Charlotte’s Web, Star Wars – Episode 3, Ghost Rider and Happy Feet locate to Australia. Today’s announcement to introduce a new Location Rebate of 15 per cent will put Australia at the top of the destination list for international film makers,” Senator Brandis said.
“The Location Rebate, which is part of the Australian Government’s new Australian Screen Production Incentive, will replace the existing Refundable Film Tax Offset Scheme. It will reverse the decline in certified productions which have fallen from seven in 2004-05, to two last financial year.”
The Location Rebate incentives announced in the Budget include:
- An increase in the rebate from 12.5 per cent to 15 per cent to increase Australia’s competitiveness as a production destination; and
- The introduction of a world-first complementary scheme with a 15 per cent rebate on all expenditure on post production, digital and visual effects undertaken in Australia (with a minimum threshold of $5 million) to encourage the use of Australia’s post-production and digital and visual effects sector.
“A review tabled in December 2006 found that the level of offshore production in Australia had increased considerably after the introduction of the offset, however, the level of overseas film production in Australia has fallen since 2004-05,” Senator Brandis said.
“These enhancements will ensure that Australia’s visual effects sector can compete internationally for work on large-budget film productions that do not shoot in Australia.”
The enhanced incentives will be available to production companies which commence principal photography on eligible productions on or after 1 July 2007. The enhancements will be given effect through amendments to Division 376 of the Income Tax Assessment Act 1997, which will be introduced shortly.
Media contact: Travis Bell 0448 950 248
Industry contact: Peter Young (02) 6271 1552