PRODUCTION INCENTIVES

In Australia, there is a two-tiered system offering both Federal and State-based incentives, to international and domestic production companies.

FEDERAL GOVERNMENT

The Federal Government offers a number of production attraction incentive programs:

40% PRODUCER OFFSET (FEATURE)
Provides a rebate of 40% of Qualifying Australian Production Expenditure (QAPE).
Significant Australian Content (SAC) Test applies.
Applies to feature films that have a minimum QAPE spend of AUD$500,000

30% POST DIGITAL & VISUAL EFFECTS OFFSET
Provides a rebate of 30% of qualifying Post, Digital and Visual Effects (PDV) production expenditure.
The production must have a total PDV related QAPE of at least AUD$500,000. Eligible formats include feature films, telemovies or television mini-series or series. The production does not need to be filmed in Australia.

20% PRODUCER OFFSET (TV)
Provides a rebate of 20% of Qualifying Australian Production Expenditure (QAPE).
Significant Australian Content (SAC) Test applies.
Eligible formats include TV drama, documentary and short form animation.

16.5% LOCATION OFFSET
A tax rebate of 16.5% calculated on Qualifying Australian Production Expenditure (QAPE).
Feature films and television must have minimum spend of AUD$15M of QAPE.
Television series also require average QAPE of AUD$1m per hour.

CO-PRODUCTION TREATY
Official co-productions are automatically eligible for the Producer Offset.
Australia currently has treaties in force with the United Kingdom, Canada, Italy, Ireland, Israel, Germany, Korea, South Africa, Singapore and China, and Memorandum of Understanding with France and New Zealand.

STATE GOVERNMENT

Australian state governments provide highly competitive incentives to approved productions to attract “footloose” projects to the State. The attraction program is discretionary and incentives are provided in the form of rebates, which are generally formulated based on the qualifying production expenditure within the state.

The incentive is determined on a case-by-case basis, taking into account demonstrable benefits including job creation, production expenditure, skills development and technology transfer.

State incentives are in addition to the Australian Federal Government’s Producer Offset, Post, Digital and Visual Effects Offset and Location Offset.

CONTACT

Lynda Carruthers
Head of Production Services
P: +61 2 9383 4035
E: lynda.carruthers@foxaus.com