The Australian screen industry is rejoicing over the recent increase in the country’s Location Offset scheme, which has been raised to 30%. This significant change was officially announced in May and has now become law, taking effect on July 1. The boost in the rebate for film and TV productions shooting in Australia from the previous 16.5% to 30% is expected to attract more overseas investment, contributing to the growth and development of the industry.
Advocacy and Impact
Kate Marks, the CEO of Ausfilm, a production body, expressed her delight at the alteration, highlighting the benefits it brings to the sector. 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.” The advocacy efforts of Australian TV and film organizations, campaigning for an enhancement in the rebate, have finally paid off, with this substantial increase aligning with the country’s goals of attracting more international shoots.
International production plays a pivotal role in the Australian government’s Revive National Cultural Policy, aiming to boost the country’s cultural and creative industries. The Minister for the Arts, Tony Burke, emphasized the positive impact of the changes on the entire Australian screen sector, stating, “The more productions that choose Australia as their filming location, the more our Australian screen workers have the opportunity to showcase their talents and hone their craft here at home.” By increasing the Location Offset, the government aims to encourage more large-budget productions to select Australia as their filming destination, contributing to economic growth and skill development in the industry.
To qualify for the rebate, Australian production expenditure thresholds have been adjusted, with a raise from A$15M to A$20M for film, and from A$1M per hour to A$1.5M for television series. Additionally, productions must meet minimum training obligations, engage with Australian post, digital, and visual effects companies, and provide new reporting mechanisms to capture essential data. The program merges the Location Incentive program introduced during the pandemic into the new Location Offset, streamlining processes and maximizing benefits for international productions filming in Australia.
Australia also offers a 30% Post, Digital, and Visual Effects (PDV) Offset for international productions traveling to the country for VFX and post-production work. Alongside the Location Offset, there is a third scheme, the 40% Producer Offset, which targets local productions and necessitates adherence to an Australian cultural test. These incentives programs collectively boost Australia’s attractiveness as a filming destination, fostering collaboration and economic growth within the screen industry.
The increase in Australia’s Location Offset scheme represents a significant milestone for the country’s screen industry. By enhancing rebates and offering a range of incentives, Australia continues to position itself as a competitive and appealing location for international productions. The benefits of these changes are expected to be far-reaching, supporting local talent, stimulating economic growth, and further establishing Australia as a leading player in the global entertainment landscape.
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