Press release from Ausfilm
Ausfilm is encouraged that the Government has acknowledged the issues adversely affecting offshore production and therefore the viability of the local Australian film and TV industry in its Review of the Australian Independent Screen Production Sector released today by Minister for the Arts, Simon Crean.
The report also confirms that large-scale international film and television productions provide vast economic, employment and skill development benefits to the country and emphasises the interdependence of the local film industry with offshore production.
The report clarifies the positive impact the sector has on the economy; “Since 2001 offshore production has injected at least $2.2 billion of expenditure on film production activity in the Australian economy.”
The report also highlights benefits to the local film sector; “This foreign investment has generated jobs and developed skills in the local film and television industry and in support service industries,” and that international productions provide an “incentive for service suppliers to invest in filmmaking infrastructure and equipment that benefits the whole industry.”
“For minimal investment, the positive impact of offshore production to the nation’s economy and local film industry is enormous. Since 2007, the Government’s investment of $67 million in Location & Post, Digital and Visual Effects (PDV) tax rebates has resulted in a total of $452 million offshore investment injection into the economy. That is a total net gain of $385 million to the nation’s economy,” said Debra Richards, CEO, Ausfilm.
However, at 15%, the Location and PDV Offsets are no longer competitive due to, as the report confirms, a high Australian dollar and competition from incentives offered by other national governments and US state governments.
“The benefits of offshore production are clear, however there are no major international feature films currently scheduled to be filmed in Australia. Offshore investment into the screen sector is at a standstill. Ausfilm is calling on the government to increase the Location and PDV Offset to 30% to allow Australia to once again be competitive on the world stage and for offshore investment to continue to flow into Australia’s film industry,” Alaric McAusland, Ausfilm Chairman.