The Australian screen industry is rejoicing after the country’s Location Offset scheme was raised to 30%. This update in legislation, which was announced in May and put into law on July 1, marks a significant advancement for TV and film productions shooting in Australia. The increase in the rebate from the previous 16.5% to 30% is anticipated to attract more overseas investment, benefiting the local industry as a whole.
Kate Marks, CEO of production body Ausfilm, expressed her enthusiasm for the change, stating that it provides a sense of certainty for international productions. This certainty supports a stable pipeline of work for thousands of Australian screen workers and businesses, while also triggering investment into new industry capacity and capabilities. The advocacy from Australian TV and film bodies for this rebate improvement over the years has been crucial, especially as Australia gains more international shoots due to generous regional rebate systems in states like Victoria and New South Wales.
International production is a key component of The Australian government’s Revive National Cultural Policy. Marks highlighted that Australia has now become one of the most competitive locations for filming, given its attractive incentives. The Minister for the Arts, Tony Burke, emphasized that the increased Location Offset will benefit the entire Australian screen sector by providing more opportunities for local talents to showcase their skills and develop their craft within the country.
To be eligible for the rebate, Australian production expenditure thresholds have been raised, with film now requiring A$20M and television series needing A$1.5M per hour. Productions must also meet minimum training obligations, engage with Australian post, digital, and visual effects companies, as well as provide new reporting to capture data. The Location Incentive program introduced during the pandemic has been integrated into the new Location Offset scheme, offering additional support to international productions coming to Australia for VFX and post-production.
In addition to the Location Offset, Australia also provides a 30% Post, Digital, and Visual Effects (PDV) Offset for international productions engaging in VFX and post work in the country. Furthermore, the country’s incentives include the 40% Producer Offset, which is aimed at local productions and necessitates an Australian cultural test for qualification. This comprehensive range of schemes aims to attract a diverse range of productions while supporting the growth and sustainability of the Australian screen industry.
Overall, the increase in Australia’s Location Offset scheme is a pivotal development that will have a profound impact on the country’s screen industry. By offering more competitive incentives, Australia is positioning itself as a premier filming destination, attracting international productions and fostering the growth of local talent and businesses. This landmark change sets a new standard for the industry and underscores Australia’s commitment to supporting and expanding its screen sector.