The government's screen agency would invest $3.25m in the $14.94m film and waive its condition that either Timothy Dalton or Sam Neill be cast in the lead role.
A confidential government document shows how quickly the classic film became profitable.
In February 1980, filmmakers Joan Long and Margaret Kelly applied to the Australian Film Commission (AFC) for another $10,000 to cover development costs.
Government documents reveal the financial details that underpinned 'The Adventures of Priscilla's' phenomenal success.
The profit it generated for the government film agency wasn't quite the windfall that many expected.
Hopkins had been paid just $US125,000 to appear in the 1991 Australian drama Spotswood but that was before the release of Silence of the Lambs.
The $15 million kids-focused fantasy film produced by Fred Schepisi and backed by Disney promised to transform the local industry.
Many of the million-dollar-plus salaries ($3-$5 million adjusted for inflation) aimed to attract stars of the day such as Jeff Bridges, Rob Lowe, Daryl Hannah, Geena Davis, and Liam Neeson.