Australia’s screen industry is celebrating the country’s location offset scheme being increased to 30%.
The law, announced in May, was passed into law today and officially entered into force on July 1st. Rebates for TV programs and movies shot domestically will be raised from 16.5% to 30%, likely to encourage further overseas investment. .
Kate Marks, CEO of production organization Ausfilm, welcomed the changes, saying: “This is great news for the industry. The 30% location offset will bring certainty to international productions and will help thousands of Australian screeners. It supports a stable pipeline of jobs for workers and businesses, and encourages investment in new industry capabilities and possibilities.”
Australian TV and film organizations have been pushing for improved rebates for years, as Australia increasingly attracts international filming thanks to generous regional rebate schemes in states such as Victoria and New South Wales. , these efforts are becoming increasingly important. International production is a central element of the Australian Government’s National Cultural Revitalization Policy.
“Australia has always been a great place to produce film and television, and now it’s one of the most competitive countries,” Mr Marks said. “Screen Australia’s Drama Report shows overseas spending on drama production and post-production reached record levels in 2022/23. ”, “Godzilla He has also worked on titles that were not filmed in Australia, including “Hocus Pocus 2” and “Indiana Jones and the Dial”. ”
Australia’s Arts Minister Tony Burke said the changes would benefit the entire Australian film industry. “The more productions choose Australia as a filming location, the more opportunities there will be for Australian film crews to showcase their talent and hone their skills at home. That’s why we’re increasing our location offsets. “We’re encouraging more budget productions,” he added.
To qualify for the rebate, the Australian production cost threshold has been increased from A$15 million to A$20 million per hour for films and from A$1 million to A$1.5 million per hour for television series. Productions will also be required to meet minimum training obligations or contribute to the department’s broader workforce and infrastructure capacity. Partner with at least one Australian Post, digital and visual effects company. Provides new reports to retrieve data.
Location incentive programs launched during the pandemic have been consolidated into new location offsets. Australia also offers a 30% post, digital and visual effects (PDV) offset for international productions traveling to Australia for VFX and post.
The country’s incentive program also includes a third scheme, the 40% producer offset. This is aimed at local productions and requires an Australian culture test. The tax rebate changes introduced today are aimed at allowing more Australian drama series to benefit from the scheme.
Research conducted by UK-based consultancy Olsberg SPI on behalf of the Film Institute and the Australian and New Zealand Film Institute found that Australian film and television incentives added a total of $11.4 billion ($1.65 billion) to the economic output of the four countries. billion Australian dollars). For the years leading up to the fiscal year 1/22/2020.
The MPA, which represents US studios, has previously welcomed location offsets, saying they will help Australia remain competitive in this very active global industry and will help Australia become more competitive in the years to come. “It will help ensure that it becomes a hub for many film and television productions.” come. “
