The Hon Rod Kemp was Minister for the Arts and Sport from Friday 23 November 2001 to Tuesday 30 January 2007. This site is available for archival purposes only.

FLIC key to Film Industry Recovery

The Australian Government has delivered on another key election commitment to the local film industry with the establishment of the Film Licensed Investment Company (FLIC) Scheme 2005.

The Scheme provides a significant investment opportunity for a local company while rewarding investors with tax benefits, the Minister for the Arts and Sport, Senator Rod Kemp, said today.

“Following the recent commencement of the Film Licensed Investment Company Act 2005, I am now making a call for applications from Australian companies for the new FLIC licence,” Senator Kemp said.

Under the FLIC Scheme 2005, a company will be granted a licence to raise $10 million in concessional capital in both 2005–06 and 2006–07. This will inject up to $20 million in additional funds into the local sector, while investors in the FLIC will benefit from a 100 per cent upfront tax deduction on shares purchased.

The successful applicant for the FLIC licence will need to show strong connections to, and understanding of, the local film production sector as well as demonstrate a robust strategy for investment. Its business plan will highlight an intention to invest funds raised in a range of productions with opportunities for both commercial and critical success. Productions must be Australian and the FLIC will have regard to local and international audience appeal.

“The FLIC Scheme 2005 is a key element of a package of support measures to bring local investors back to film and provide additional funds for quality, Australian productions,” Senator Kemp said.

“The Government is committed to arresting the downturn in the local film and television sector. It confirmed this in the 2005–06 Budget with a package that injects an additional $88 million in overall support through Australian Government film agencies as well as encouraging increased private investment in our industry.”

An expert selection advisory panel will assess applications and make a recommendation to the Minister on which company should be granted the licence. The panel will include members from government, film and television, and the legal, banking, investment or accounting sectors.

Information about the application process, including how to apply, is available from the Department of Communications, Information Technology and the Arts’ website (www.dcita.gov.au) under Latest News. Queries can also be emailed to flicapplications2005@dcita.gov.au. Applications must be received by 5.00pm on 23 September 2005. Late applications will not be accepted.

MELBOURNE
12 August 2005

Media contact: Michael Christo, 03 9650 7274 or 0409 040276