Screen Australia has announced that from December 20, it will cease to revert its recoupment entitlement for all production investment made prior to January 1 2009. This will impact projects funded via legacy agencies the Australian Film Commission (AFC) and the Film Finance Corporation (FFC), or in the first six months of Screen Australia’s operation (July-December 2008).
Producers have been able to apply for reversion of Screen Australia’s entitlement to revenue for legacy productions since 2009, and the agency reports having processed more than 600 applications for such titles to date. It has made the decision to cease reversion with the expectation that after 10 years, most eligible will have already submitted an application.
However, those who haven’t yet will be able to apply up until the December 20 cut-off.
Screen Australia does not have a right to future revenue for a reverted project, including sequel fees or remakes. However, the agency is entitled to a share of revenue from to the period before the application for reversion, even if it hasn’t yet been received/collected by the producer. The agency also retains a 1 per cent copyright interest.
This change does not impact projects funded through Screen Australia from January 1 2009 onwards; these productions already have reversion clauses built into their agreements, typically triggered after seven years.
The application process for reversion is unchanged, with applicants needing to submit a ‘Request for Reversion of Entitlements’ form. However, as of today the reversion is no longer backdated to July 1 2015, but to the date of receipt of a successful application form.