Ausfilm applauds the Federal Government’s announcement as part of the 23/24 Budget to increase the Location Offset from 16.5% to 30% from July 1, 2023, delivering a significant boost to the Australian screen industry and broader Australian economy by providing certainty and stability for international film and TV productions and ensuring stable employment for the thousands of Australian businesses and individuals across the entire screen ecosystem.
“This is outstanding news for the industry. A permanent 30% Location Offset will ensure a robust pipeline of both physical production and PDV work into the future and cement Australia’s position as a leader in the global screen industry.“
– Kate Marks, Ausfilm CEO
Marks continues, “Increasing the Location Offset will result in meaningful benefits for the entire sector and the economy related to jobs and training opportunities, innovations in technology, infrastructure development, along with direct benefits to businesses not dedicated to the screen industry (e.g., construction, education, hospitality, security, travel, real estate). It will also drive significant benefits to regional locations and businesses.
“International clients have demonstrated their willingness to work with us on skills and training, and this decision provides a big opportunity to build the industry’s capacity across infrastructure and skills into the future,” she adds.
Since 2018, there have been two separate programs running concurrently to ensure Australia’s competitiveness as a production location – the 16.5% Location Offset and the 13.5% Location Incentive Grant. Today’s announcement to transition to a 30% Location Offset will streamline the process and provide long-term certainty to international clients looking to invest in Australia. Over the past five years, 40 international productions have been secured for Australia generating over A$3.28 billion in private investment, 22,200 employment opportunities and work for over 23,500 Australian businesses, confirming Australia’s status as a world-class production destination.
The Location Offset will now align with the 30% PDV Offset and ensures Australia remains globally competitive.
The minimum qualifying Australian production thresholds will increase from July 1, 2023. Currently, the minimum qualifying Australian production expenditure thresholds are A$15 million and A$1 million per hour for television series. These will increase to A$20 million and A$1.5 million per hour for television series.
New eligibility requirements will be introduced:
- A requirement that a production must meet minimum training obligations or contribute to the broader workforce and infrastructure capacity of the sector.
- A requirement that a production must use one or more Australian providers to deliver post, digital and visual effects for the production.
- New reporting requirements are proposed as part of the Location Offset application process to capture data including employment of Australian crew and use of Australian businesses.
Ausfilm sincerely thanks Australia’s Prime Minister, The Hon Anthony Albanese MP, Minister for the Arts, the Hon Tony Burke MP, Treasurer, the Hon Dr Jim Chalmers MP, Minister for Finance, Senator the Hon Katy Gallagher, and the Australian Government for this significant announcement, demonstrating its meaningful support of the Australian screen sector, the thousands of Australians who work in it, and the significant economic contribution it makes. Ausfilm looks forward to continuing to work closely with Government through the legislative process.
Contact Ausfilm for further information about the Location Offset:
Erin Stam, EVP of International Production
[email protected]