The Australian Parliament
today passed legislation establishing an Australian Screen Production
Incentive, providing more than $280 million over the next four years in
generous incentives for Australian film and television productions and for
offshore productions to locate to Australia.
‘The passage of this
legislation constitutes the most fundamental reform to Australian Government
film financing in the last 25 years. It brings in a new era for the Australian
film and television industry,’ the Minister for the Arts and Sport, Senator
George Brandis said.
The new incentives include:
* a Producer Offset which
provides a 40 per cent rebate to producers of Australian films and a 20 per
cent rebate for the production of other media;
* a Location Offset which
provides a 15 per cent rebate to attract large-budget overseas film and
television productions to Australia; and
* a PDV Offset, providing a 15
per cent rebate on post, digital and visual effects production work of over $5
million regardless of where a screen project has been shot.
A Government amendment was
made to the legislation during its passage to ensure animation series with
episodes of 15 commercial minutes would be eligible formats for the purposes of
the Producer Offset. This amendment has addressed industry feedback that many
animations, especially for children, are of shorter duration than other series.
The Producer Offset will
provide the necessary impetus to grow the Australian production industry by
making it easier for Australian producers to attract private investment,
increase equity in their productions, and develop stable production companies.
The new Location Offset will
restore Australia’s competitiveness as a destination for large-budget
productions from Hollywood and Europe increasing opportunities for Australian
casts and crews to work on the world’s best productions.
‘The new Producer Offset
will be available to all producers of Australian productions, including feature
films, telemovies, series, including animated series, documentaries and short form
animations,’ Senator Brandis said.
‘The introduction of the
Producer Offset reflects the Government’s view that a sustainable and
independent screen production sector is crucial in building a stronger
Australian film and television production industry.
‘As I announced earlier, the
Government intends that the industry as a whole will be able to benefit from
the incentives.
‘The Government is aware of
concerns from the independent production sector regarding the potential impact
of the Producer Offset on the level of independent production in Australia.
However, it is the Government’s expectation that the independent sector will
benefit from the Producer Offset.
‘It has not been the view of
the Government that eligibility for the offset should be quarantined only to
the independent sector, but it is certainly the view of the Government that
independent producers should be beneficiaries of the Producer Offset.
‘Further, the Government
expects the Producer Offset will provide a real opportunity for independent
producers to retain substantial equity in their productions and build stable
and sustainable production companies, and should therefore increase private investor
interest in the industry.
‘I reiterate the Government’s
firm view that it will not look favourably on any evidence that broadcasters
are using the offset to reduce their licence fees, to the detriment of the
independent sector,’ Senator Brandis said.
The Government has agreed to
commence a statutory review, within 12 months of Royal Assent for the
legislation, on the impact of the new offsets on the balance between in-house
and independent productions.
‘I will also direct the new
film agency, Screen Australia, which is to be established in mid-2008, not to
provide production funding to in-house productions by broadcasters, consistent
with the existing practice of the Film Finance Corporation Australia,’ the
Minister said.
The Australian Screen Production
Incentive is part of the Australian Government’s Screen Media Support Package,
worth almost $300 million over four years. For more information on the package
visit http://www.dcita.gov.au/film
[release from Senator the Hon. George Brandis
S.C.– Minister for the Arts and Sport]