The Australian screen industry has recently been buzzing with excitement over the increase of the country’s Location Offset scheme to 30%. This newly implemented legislation, which was officially put into effect on July 1st, has raised the rebate for TV and film productions shooting in Australia from the previous 16.5% to 30%. The industry is thrilled with this development, as it is expected to attract more overseas investment and benefit the local workforce and businesses.
For years, Australian TV and film bodies have been advocating for an improvement in the rebate system, as the country has been attracting more international shoots with the help of regional rebate systems in states like Victoria and New South Wales. This increase in the Location Offset scheme has been a significant win for the industry, as it provides certainty for international productions, supporting a stable pipeline of work for Australian screen workers and businesses. It is expected to trigger investment into new industry capacity and capabilities, further boosting the country’s appeal as a filming location.
Increased Foreign Spend and Record-breaking Productions
The impact of the Location Offset increase is already evident, as foreign spend on drama production and post-production reached record-breaking levels in the 2022/23 period. This growth was driven by large-scale titles like “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 such as “Halo,” “Hocus Pocus 2,” and “Indiana Jones and the Dial of Destiny” also contributed to the industry’s success.
Australia’s Minister for the Arts, Tony Burke, emphasized that the changes in the rebate system will benefit the entire Australian screen sector. The increase in the Location Offset aims to encourage more large-budget productions to choose Australia as their filming location, providing opportunities for Australian screen workers to showcase their talents and hone their craft locally. To qualify for the rebate, productions must meet certain criteria and obligations, including engaging with Aussie post, digital, and visual effects companies and contributing to the broader workforce and infrastructure capacity of the sector.
Enhanced Incentive Programs
In addition to the Location Offset scheme, Australia also offers a 30% Post, Digital, and Visual Effects (PDV) Offset for international productions that travel to the country for VFX and post-production work. The country’s incentives programs further include the 40% Producer Offset, aimed at supporting local productions that meet the Australian cultural test. With these enhanced incentive programs and schemes in place, Australia is solidifying its position as one of the most competitive filming locations globally.
The increase in the Location Offset scheme in Australia has had a significant impact on the local screen industry, attracting more international productions and boosting foreign investment. This positive change is expected to benefit Australian screen workers, businesses, and the broader sector as a whole, further solidifying the country’s reputation as a desirable filming destination.
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