New producer incentive for Australian film and television productions
9 May 2007
Joint media release Senator Brandis & Senator Coonan
As part of the Australian Government’s $282.9 million film package announced in this year’s Budget, a Producer’s Rebate will be introduced, creating a new tax incentive to boost support for Australian film and television productions, the Minister for the Arts and Sport, Senator the Hon George Brandis said today.
“The Producer’s Rebate will help the film and television industry to become more competitive and responsive to audiences, and will be a major incentive for projects with significant commercial potential,” Senator Brandis said.
“The Rebate provides a substantial opportunity for producers to retain significant equity in their productions and build stable and sustainable production companies, both important for the long term growth of the film industry.”
All eligible films will receive a rebate of 40 per cent of their qualifying Australian production expenditure.
“This rate, regardless of the size of the film, will be a big incentive for Australia’s best talent to make the blockbuster Australian stories that can showcase our culture to the world,” Senator Brandis said.
Eligible productions for other media, mostly television drama, will receive a 20 per cent rebate. A particular feature of the Producer’s Rebate is that new long form television series will qualify for Australian Government support for the first time.
Producers will be asked to apply for the Rebate after they have secured guaranteed financing but before production commences. Transitional provisions will apply for projects already in production. The rebate will be paid on eligible Australian expenditure once production is complete and audited accounts submitted. The Rebate will be delivered through the taxation system and will not be capped.
Eligibility of productions will be based on the current 10BA criteria for certification as an ‘Australian film’, but with sources of financing and ownership of copyright no longer included as specific factors in determining eligibility. This should allow greater capacity for Australian filmmakers to attract support from the global marketplace.
Direct funding will continue to be an important element in Government support mechanisms, as an alternative to support through the taxation system.
Government agencies will be able to provide supplementary funding for projects which receive the rebate where that can be clearly justified, with a maximum cap on Australian Government funding of 75% of a project’s Australian production expenditure.
This will give Government agencies the ability to provide supplementary support to the Rebate in exceptional cases, or to support other productions of strong cultural significance or which are justified on other public interest grounds, such as documentaries or children’s television programming.
Administration of the Rebate will be undertaken by the Film Finance Corporation Australia (FFC), pending the establishment of a new Australian Screen Authority, which will assume functions currently undertaken by the Australian Film Commission, the FFC and Film Australia Ltd from 1 July 2008.
The new Producer’s Rebate will apply to expenditure incurred by eligible productions on or after 1 July 2007. The Rebate will not be accessible to productions that have received direct production assistance from Australian Government film agencies prior to 1 July 2007, or received investment that has utilised 10BA or 10B deductions.
The Division 10BA and 10B schemes, which have had only limited effectiveness in recent years, will be abolished. No new applications will be accepted after 30 June 2007 while concessional status for investments in productions holding a certificate will continue to be available until 30 June 2009. Productions that receive concessional investment would not be able to access the new tax rebate.
Enabling legislation will be introduced into the Parliament shortly.
“This year’s Budget shows the Australian Government’s strong commitment to building Australia’s sustainable and exceptional Arts sector. It constitutes the largest ever investment in the Australian film industry, as well as the biggest investment in the Arts, contributing more than $800 million to the Arts over the next four years,” Senator Brandis said.
Media contact: Travis Bell 0448 950 248
Industry contact: Peter Young (02) 6271 1552