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Investment in film industry gets a boost with changes to tax offsets::

Eligibility requirements for film tax offsets will be changed to make Australia a more attractive destination for significant film-making, and enable more businesses to benefit.

 

The Australian Government will remove the current requirement for productions valued between $15 million and $50 million to spend a minimum of 70 per cent of their production budgets in Australia.

 

The Post, Digital and Visual Effects Production (PDV) threshold will also be reduced, from $5 million to $500,000. Both changes will apply from 1 July 2010.

 

According to the Hon. Peter Garrett, the Minister for Environmental Protection, Heritage and the Arts, "In recent years the requirement for large offshore productions to spend 70 per cent of their budget locally has been a factor in some productions not coming to Australia, particularly smaller budget films wanting to shoot here as one of multiple international locations.

 

"The amendments to the eligibility requirements in the tax law will remove some of the barriers to significant offshore productions considering Australia as a production destination and will help local PDV providers to bid for additional work overseas.

 

"Reducing the PDV threshold to $500,000 will make Australia's world-class, but smaller, PDV providers more competitive when bidding for work outsourced by Hollywood studios, increasing both local employment opportunities and skills within our industry," Garrett said.

 

These changes are part of an initial Government response to the 2010 Review of the Australian Independent Screen Production Sector being conducted by the Department of the Environment, Water, Heritage and the Arts. Further announcements on its response will be made after it reports later this year.

 

13 May 2010