The Australian screen industry is abuzz with excitement following the recent increase in the country’s Location Offset scheme to 30%. This legislation, which was officially announced in May, has now become law and came into effect on July 1. The boost in rebate for TV and film productions shooting in Australia from the previous 16.5% to 30% is a significant development that is expected to attract more overseas investment.
Kate Marks, the CEO of Ausfilm, expressed her enthusiasm for the change, emphasizing the positive impact it will have on the industry. She stated, “This is fantastic news for the industry. The 30% Location Offset will provide certainty for international productions, supporting a stable pipeline of work for thousands of Australian screen workers and businesses, and triggering investment into new industry capacity and capabilities.” This endorsement from a key industry figure highlights the significance of the increased rebate.
Industry Advocacy for Rebate Improvement
For years, Australian TV and film bodies have been advocating for an enhancement of the rebate, recognizing the importance of remaining competitive in the global market. As Australia continues to attract international shoots due to generous regional rebate systems in states like Victoria and New South Wales, the need for a higher Location Offset becomes even more critical. The advocacy efforts have paid off with the recent legislative changes.
The Australian government’s Revive National Cultural Policy emphasizes the crucial role of international production in the country’s screen industry. With the implementation of the 30% Location Offset, Australia has positioned itself as one of the most competitive destinations for filming and TV production. Foreign spend on drama production and post-production has reached record-breaking levels, driven by major titles such as “Anyone But You,” “The Fall Guy,” and “Godzilla x Kong: The New Empire.”
Government Support for the Screen Sector
Australia’s Minister for the Arts, Tony Burke, lauded the changes, recognizing the benefits they will bring to the entire Australian screen sector. He highlighted the opportunity for Australian screen workers to showcase their talents and hone their craft through increased filming in the country. The higher Location Offset aims to attract more large-budget productions to Australia’s shores, boosting the local industry.
To be eligible for the increased rebate, Australian production expenditure thresholds have been raised, with new requirements such as meeting minimum training obligations or contributing to the workforce and infrastructure capacity of the sector. Productions must engage at least one Australian post, digital, and visual effects company and provide new reporting to capture data. The merging of the Location Incentive program into the new Location Offset streamlines the incentive process for international productions.
Diverse Incentive Programs
In addition to the Location Offset scheme, Australia offers a 30% Post, Digital, and Visual Effects (PDV) Offset for international productions that utilize VFX and post-production services in the country. The existing 40% Producer Offset caters to local productions and requires adherence to an Australian cultural test. These various incentive programs showcase the government’s commitment to supporting and fostering growth in the screen industry.
The increased Location Offset scheme in Australia is a game-changer for the country’s screen industry. By attracting more international productions and providing additional support to local workers and businesses, the higher rebate is poised to elevate Australia’s status as a competitive filming destination. The collaborative efforts of industry stakeholders and government bodies have paved the way for a thriving and sustainable screen sector in Australia.
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