Australia’s tax incentives for the screen industry

Federal rebates, administered through the Australian taxation system, provide a rebate of expenditure ranging from 16.5 percent for location offsets to 40 percent for theatrically released producer offsets. The incentives require a minimum amount of expenditure depending on the type of offset, and also must be audited by a registered company auditor at completion. This audit is followed up by a second audit by either Screen Australia or the Ministry of the Arts before approval is provided to the Australian Tax Office and a final certificate issued for the rebate.

A film’s production expenditure is defined as ‘the expenditure incurred, or reasonably attributable, to actually making the film, up to the point that it is ready to be distributed, broadcast, or exhibited to the general public.’ It includes expenditure made on goods or services provided in Australia, and expenditure made overseas during principal photography for goods or services provided by Australian residents, where the use of the overseas location is reasonably necessitated by the subject matter of the film.

Applicants can be either Australian companies or foreign companies with a permanent residency in Australia. An Australian subsidiary provides foreign filmmakers with the most options.

For the producer tax offset, the applicant’s production requires significant Australian content or must be an official co- production. For the post-production, digital, and visual effects (PDV) offset there are no requirements on where the production is filmed, only a minimum spend and confirmation that the work was done in Australia.

The 40 percent cash rebate available to foreign producers in Australia is one of the highest in the world and when, combined with State grants, the quality of facilities and crew, and being a safe destination, Australia has become a desired destination for foreign filmmakers.

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