The Australian screen industry is buzzing with excitement after the recent announcement of the increase in the country’s Location Offset scheme to 30%. This legislation, which was initially revealed in May, has now been officially made into law and came into effect on July 1. The raise in the rebate for TV and film productions shooting in Australia from the previous 16.5% to 30% has been widely welcomed by industry professionals.
Kate Marks, the CEO of production body Ausfilm, expressed her delight at the changes, stating that “This is fantastic news for the industry.” The new 30% Location Offset is expected to provide certainty for international productions and support a stable pipeline of work for Australian screen workers and businesses. It is also anticipated to trigger investment into new industry capacity and capabilities, marking a significant milestone for the Australian screen industry.
Australian TV and film bodies have been lobbying for an improvement in the rebate system for years. This work has become increasingly crucial as Australia continues to attract more international shoots, thanks to generous regional rebate systems in states such as Victoria and New South Wales. International production is a key component of the Australian government’s Revive National Cultural Policy, and the increase in the Location Offset is a step towards strengthening the country’s position as a competitive destination for film and TV production.
The recent changes in the Location Offset have already shown positive results, with foreign spend on drama production and post-production reaching record-breaking levels in 2022/23. This growth has been attributed to large-scale titles such as “Anyone But You,” “The Fall Guy,” “Godzilla x Kong: The New Empire,” “Kingdom of the Planet of the Apes,” and “Ricky Stanicky.” Additionally, post, digital, and visual effects work on titles that did not shoot in Australia, such as “Halo,” “Hocus Pocus 2,” and “Indiana Jones and the Dial of Destiny,” has further showcased Australia’s capabilities in the film industry.
Australia’s Minister for the Arts, Tony Burke, highlighted the positive impact of the changes on the entire Australian screen sector. By attracting more productions to choose Australia as their filming location, the country can provide more opportunities for Australian screen workers to showcase their talents and hone their craft domestically. The increase in the Location Offset is a strategic move to encourage more large-budget productions to come to Australia, thereby boosting the local industry.
Qualification Requirements and Program Details
To qualify for the rebate, Australian production expenditure thresholds have been raised from A$15 million for film to A$20 million, and from A$1 million per hour for television series to A$1.5 million. Productions will also need to meet minimum training obligations, engage with Australian post, digital, and visual effects companies, and provide new reporting to capture data. The Location Incentive program, which was launched during the pandemic, has now been integrated into the new Location Offset. Australia also offers a 30% Post, Digital, and Visual Effects (PDV) Offset for international productions that come to Australia for VFX and post-production work.
In addition to the Location Offset and PDV Offset, Australia also has a Producer Offset scheme, which offers a 40% rebate for local productions. This scheme is primarily aimed at supporting Australian cultural content and requires productions to pass an Australian cultural test. With these various incentives programs in place, Australia is solidifying its position as a leading destination for film and TV production, both locally and internationally.
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