Budget Announcement: Direct Funding for Documentaries Under $500,000AUD and Changes to the Producer Offset Scheme, Announced in Federal Budget Last Night

The Government will provide $43.0 million to the Australian Taxation Office (ATO) and $13.0 million to Screen Australia over four years from 2011-12 for a package of enhancements to the film tax offsets program including:

• lowering the threshold of the Producer Offset to $500,000;
• providing direct funding for low budget (under $500,000) documentaries in place of the Producer Offset Scheme;
• increasing the rate of the Location Offset from 15 per cent to 16.5 per cent;
• increasing the Post, Digital and Visual Effects Offset from 15 per cent to 30 per cent;
• permitting some additional screen production costs to be claimed as Qualifying Australian Production Expenditure (QAPE) under the film tax offsets;
• allowing television series to benefit from the Producer Offset Scheme for the first 65 broadcast hours (replacing the current 65 episode limit);
• and providing funds to Screen Australia to commission a screen industry survey by the Australian Bureau of Statistics.

These changes will be partly offset by $48.0 million in savings over four years from 2011-12 by removing the Goods and Services Tax (GST) amounts from Qualifying Australian Production Expenditure (QAPE) for the film tax offsets and increasing the minimum expenditure thresholds for documentaries to $500,000 in production (from the current threshold of $250,000).

The measure is in response to the findings of the 2010 Review of the Australian Independent Screen Production Sector.

The measure is jointly administered by Screen Australia and the Australian Taxation Office (ATO).

For more detailed information please click here. 

Industry Forums

Screen Australia will explain the budget measures in industry forums over the next few weeks, including:

• Melbourne, 5pm, Wednesday 18 May, ACMI Studio One
• Sydney, 3.30pm, Friday 20 May, Dendy Opera Quays

RSVP essential as places are limited, to rsvp@screenaustralia.gov.au

Your Comments

AIDC is interested to hear your comments and feedback on these budget announcements.

Please send us your comments here