By Brendan Swift
Almost half of the Australian feature films released last year are eligible to claim the Producer Offset, according to a survey by INSIDEFILM.
The other half of the 31 feature films surveyed chose to use the now defunct 10BA system, which allowed private investors to claim a tax deduction on their investment, although several films did not receive either incentive.
The Offset was launched in July 2007 and allows producers to claim up to 40 per cent of their qualifying Australian production expenditure through the tax system for feature films and 20 per cent for TV and documentaries.
The total amount likely to be claimed through the Offset is almost $26 million by 13 productions released in 2009.
The survey does not include features released in 2008, such as Baz Luhrmann’s big budget Australia, or TV and documentaries. Tax privacy laws prevent Screen Australia from naming productions and rebate amounts.
Jane Campion’s Bright Star and Scott Hicks’ The Boys are Back are both likely to claim the highest rebates – over $5 million each – from among the 2009 releases. However, that amount may be lower because a considerable amount of their production budgets – over $16 million each – was spent in the UK.
Both films also received direct funding from Screen Australia (via the former Film Finance Corporation). Bright Star received about $4.45 million and The Boys are Back received $1.09 million.
Screen Australia has previously said the Offset has bolstered screen productions – including TV and documentaries – by more than $123 million since its launch in July 2007. And last year’s batch of screen productions are expected to claim up to $160 million in tax rebates over the next several years, largely underpinned by big budget feature animations Happy Feet 2 and Guardians of Ga’Hoole.
Three major films in 2009 did not qualify (or apply) for either 10BA funding or the Producer Offset: Stone Bros., Samson & Delilah and Cedar Boys.
Several smaller budget films also did not qualify for the Offset. The Screen Producers Association of Australia is continuing to lobby the government to reduce the current Producer Offset threshold, which is set at $1 million qualifying Australian production expenditure.
|
Film
|
Budget ($m)
|
Funding mechanism
|
Est. Rebate ($m)*
|
|
Bright Star
|
$16.70
|
Producer Offset
|
$5.85
|
|
The Boys Are Back
|
$16.00
|
Producer Offset
|
$5.60
|
|
Charlie & Boots
|
$8.00
|
Producer Offset
|
$2.80
|
|
Beautiful Kate
|
$6.00
|
Producer Offset
|
$2.10
|
|
Balibo
|
$4.50
|
Producer Offset
|
$1.58
|
|
Subdivision
|
$4.00
|
Producer Offset
|
$1.40
|
|
Blessed
|
$4.00
|
Producer Offset
|
$1.40
|
|
Last Ride
|
$4.00
|
Producer Offset
|
$1.40
|
|
My Year Without Sex
|
$3.80
|
Producer Offset
|
$1.33
|
|
Lucky Country
|
$2.00
|
Producer Offset
|
$0.70
|
|
Beautiful
|
$2.00
|
Producer Offset
|
$0.70
|
|
Closed for Winter
|
$2.00
|
Producer Offset
|
$0.70
|
|
The Combination
|
$1.17
|
Producer Offset
|
$0.41
|
|
Prime Mover
|
Not disclosed
|
Producer Offset
|
NA
|
|
Stone Bros.
|
$3.30
|
None
|
|
|
Samson & Delilah
|
$1.60
|
None
|
|
|
Cedar Boys
|
$1.36
|
None
|
|
|
Shadows of the Past
|
$820,000
|
None
|
|
|
Van Diemen’s Land
|
$800,000
|
None
|
|
|
The Marriage of Figaro
|
$400,000
|
10BA
|
|
|
Bad Bush
|
$180,000
|
None
|
|
|
Salvation
|
under $1m |
None
|
|
|
Mao’s Last Dancer
|
$25.80
|
10BA
|
|
|
Disgrace
|
$10.00
|
10BA
|
|
|
Two Fists, One Heart
|
$8.50
|
10BA
|
|
|
Mary and Max
|
$8.00
|
10BA
|
|
|
$9.99
|
$4.00
|
10BA
|
|
|
Prey
|
$3.50
|
10BA
|
|
|
Restraint
|
$4.00
|
10BA
|
|
|
Coffin Rock
|
$2.04
|
10BA
|
|
|
Crush
|
$2.00
|
10BA
|
|
|
Lake Mungo
|
$1.70
|
10BA
|
|
* Calculated as 35% of production budget to take into account costs and non-qualifying expenditure. The Producer Offset is 40% of qualifying Australian expenditure.
Source: INSIDEFILM survey