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Lights, camera, action! Refundable film tax offset
Men in leather trenchcoats, Jawas and Wookiees, Hollywood glamour and hotshot directors may all just be around a corner near you.
Australia is one of the most popular destinations for filmmaking in the world. The number of major film productions made in Australia is significantly increasing every year. With the announcement of expanded studio space in Australia, there are more and more opportunities for film-makers.
Australia has spectacular, diverse locations, well respected and sought after crews and creative talent, exceptional cast and internationally recognised technical facilities and Oscar™ winning post-production services. This, combined with the highly economical cost of film production and an established, collaborative network of film agencies committed to assisting producers, means that Australia is a world-class location for filmmaking.
And the international filmmaking community is well aware of this. Its members have been coming to Australia to make films in increasing numbers over the last few years, with particularly strong recognition from the US market. From the action scenes of The Matrix filmed in downtown Sydney, to the stark Mars landscape of Red Planet evoked by the desert outback of South Australia, the Australian film industry has enormous potential to continue to grow in line with the increasing demand.
The Commonwealth Government's introduction of a refundable tax offset for film production in Australia has sent a clear message that Australia wants large budget film production to locate here--whether it's Hollywood production or Baz Luhrmann's latest blockbuster.
The offset, which was announced in September 2001 as part of the Commonwealth's $92.7 million Integrated Film Industry package, demonstrates a commitment to making the Australian film industry more competitive with countries like Canada, the United Kingdom and Ireland, which are all benefiting from US 'runaway' production.
While the offset is targeted at big budget film production, the other elements of the package provide a vital balance, focusing on the broader development of a vibrant and sustainable Australian film industry. Funding through the package will provide direct support for the production of a healthy slate of Australian film and television, for enhanced digital training facilities, for an enhanced post-production sector and for the development of films and film-makers.
The key criterion to access the offset is a minimum level of qualifying Australian expenditure of A$15 million on the production of a feature film, telemovie or television mini-series. The offset will be a benefit worth 12.5 per cent of the qualifying Australian production expenditure of a film.
This benefit will be offset against the company's Commonwealth tax liabilities, with any remainder refunded directly to the company. When taken into account with the pre-existing benefits of filming in Australia and with the local incentives on offer in some Australian States, there is no doubt that the offset is becoming a significant drawcard for film-makers.
Anecdotes from the industry confirm that the offset is already having a positive benefit on Australian film production services industries. More work is being directed to Australian post-production houses, studio infrastructure is being expanded and more big budget films than ever are looking to locate in Australia.
So next time you're walking down the street, and see a Brad Pitt or Julia Roberts look-alike, take a second look, it might just be the real thing.