The Impact of Australia’s Increased Location Offset Scheme on the Film Industry

The recent increase in Australia’s Location Offset scheme to 30% has been met with great enthusiasm and celebration within the country’s screen industry. The announcement of this legislation back in May has now officially come into effect as of July 1. This change raises the rebate for TV and film productions shooting in Australia from the previous 16.5% to 30%, making the country more attractive for international investment in film and television projects.

Kate Marks, the CEO of the production body Ausfilm, expressed her excitement over the increased Location Offset, stating that it provides certainty for international productions. She emphasized that this change will support a stable pipeline of work for thousands of Australian screen workers and businesses, as well as trigger investment into new industry capacity and capabilities. The support from industry leaders like Marks highlights the positive impact this new scheme will have on the Australian film and television sector.

Australian TV and film bodies have long been advocating for an improvement in the rebate scheme, especially as Australia continues to attract more international shoots due to generous regional rebate systems in states like Victoria and New South Wales. The increase in the Location Offset is seen as a crucial step in maintaining Australia’s competitiveness in the global film industry. This change is aligned with The Australian government’s Revive National Cultural Policy, underscoring the significance of international production in the country.

Foreign spend on drama production and post-production in Australia reached record-breaking levels in recent years, driven by 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 international titles like “Halo,” “Hocus Pocus 2,” and “Indiana Jones and the Dial of Destiny” has also contributed to the growth of the Australian film industry. The increased rebate will likely attract even more foreign investment in the future.

Australia’s Minister for the Arts, Tony Burke, emphasized that the changes to the Location Offset scheme will benefit the entire Australian screen sector. By encouraging more large-budget productions to choose Australia as their filming location, local screen workers will have more opportunities to showcase their talents and develop their skills. The increased expenditure thresholds and new requirements for productions to qualify for the rebate aim to further support the growth and sustainability of the Australian film and television industry.

In addition to the Location Offset scheme, Australia also offers a 30% Post, Digital, and Visual Effects (PDV) Offset for international productions that utilize VFX and post-production services in the country. Furthermore, the 40% Producer Offset is aimed at supporting local productions that meet Australian cultural test requirements. The merging of the Location Incentive program into the new Location Offset demonstrates the government’s commitment to diversifying and enhancing its incentives programs to attract a wide range of film and television projects.

By analyzing the impact of Australia’s increased Location Offset scheme on the film industry, it becomes clear that this change will have far-reaching benefits for the country’s screen sector. The boost in international investment, support for local screen workers, and diversification of incentives programs all contribute to making Australia a more competitive and desirable filming location on the global stage.