Australia

Australia Film Incentive Overview

The Australia Film Incentive is one of the most robust in the world, offering a combination of tax offsets that can total up to 40%. The Australia Film Incentive includes the Producer Offset (up to 40%), the Location Offset (16.5%), and the PDV Offset (30%). To qualify for the Australia Film Incentive, productions must meet local spending thresholds and hire Australian services. The Australia Film Incentive applies to feature films, television series, and digital content. Administered by Screen Australia and state agencies, the Australia Film Incentive is ideal for high-budget international shoots.

Hoodlum Introduction

Hoodlum Film Fixers is your guide to the Australia Film Incentive. We manage the complex application process for the Australia Film Incentive, including budget planning, audit coordination, and vendor alignment. With extensive experience in navigating the Australia Film Incentive, we help maximize your eligible expenses and reduce your risk. Trust Hoodlum to streamline your access to the Australia Film Incentive and keep your production on time and on budget.

Incentives Offered

Australia’s federal government supports screen production through three major incentives:

1. Producer Offset
   • 40% rebate for eligible feature films.
   • 20% rebate for eligible television, documentary, and other formats.
2. Location Offset
   • 16.5% rebate on qualifying Australian production expenditure (QAPE) for large-budget international productions filmed in Australia.
3. PDV Offset (Post, Digital, and Visual Effects)
   • 30% rebate on QAPE for post-production, digital, and VFX work carried out in Australia.
   • Can be claimed without filming in Australia.

Eligibility Criteria

Producer Offset

• Project must be:
  • A feature film intended for theatrical release in Australia, or
  • A qualifying television program, including documentaries, drama series, and animation.
• Must pass the Significant Australian Content (SAC) test or be an official co-production (with an approved treaty partner).
• No minimum QAPE requirement, but QAPE must be significant enough to warrant assessment.

Location Offset

• Designed for large-scale international productions.
• Minimum QAPE Requirements:
  • AUD $20 million for feature films.
  • AUD $1.5 million per hour for TV series.
• Principal photography must commence on or after July 1, 2023.
• Production must be substantially filmed in Australia.

PDV Offset

• Must engage an Australian company to carry out post, digital, and visual effects work.
• Minimum QAPE: AUD $500,000.
• Can be claimed even if no filming takes place in Australia.

Common Requirements Across All Offsets

• Applicant must be an Australian-incorporated entity and Australian tax resident.
• Accurate QAPE documentation must be maintained.
• Application process involves Screen Australia and the Australian Taxation Office (ATO).
• Incentives can be combined with state-level support.

Eligible Production Categories

• Feature Films (including animation)
• Television Series & Mini-Series
• Documentaries
• Short Films (in some cases)
• Official Co-Productions (under treaty agreements)
• PDV-Only Projects (eligible under PDV Offset)

What is the minimum QPE per project

The minimum Qualifying Production Expenditure (QAPE) per project varies depending on the type of production and the specific offset. Here are the minimum QAPE thresholds:

• Location Offset
  • Feature Films: $20 million
  • Television Series: $1.5 million per hour
  • Post, Digital and Visual Effects (PDV) Offset
  • PDV Production: $500,000
• Producer Offset
  • No minimum QAPE threshold: However, the production must meet the significant Australian content test or be an official co-production.

Qualifying Australian Production Expenditure (QAPE)

Pre-Production

• Scriptwriting and development
• Budgeting and scheduling
• Location scouting and surveys
• Casting
• Storyboarding and pre-visualization
• Pre-production labor and consultation

Production

• Cast and crew salaries (Australian tax residents)
• Director, producer, writer, and editor fees
• Set construction, art direction, and production design
• Equipment rental (camera, grip, lighting, sound, generators)
• Wardrobe and costumes
• Special effects and prosthetics
• Stunts and related personnel
• On-set facilities (catering, trailers, services)

Labor

• Australian resident employees’ wages and contractor fees
• Payroll tax
• Superannuation (pension contributions)
• Insurance premiums related to labor

Location Expenses

• Site fees and filming permits
• Local location management and scouting fees

Accommodation and Transport

• Domestic travel for cast and crew
• Hotel/accommodation expenses in Australia
• Vehicle rental and on-set transportation

Specialized Services

• Drone cinematography
• Motion control and time-lapse systems
• Underwater or aerial filming specialists
• Animal handlers and safety officers

Post-Production

• Editing and color grading
• Sound design, ADR, and foley
• Music composition and licensing (if done in Australia)
• VFX and animation
• Mastering and deliverables

Miscellaneous and Overheads

• Production office costs (rent, utilities, consumables)
• IT and communications (phones, software)
• Legal and accounting services (specific to the production)
• Waste removal and sustainability measures
• Production insurance

Non-Qualifying Expenditures (Excluded from QAPE)

• Expenditures incurred outside of Australia
• Marketing, publicity, and distribution costs
• Financing fees (e.g., interest, bank charges, currency hedging)
• Deferments, profit participation, or residuals
• GST (Goods and Services Tax) that is claimable as credit
• International above-the-line costs (unless directly linked to Australian QAPE)

Application Process

Step 1: Determine Eligibility

• Identify which rebate(s) apply: Producer, Location, or PDV Offset.
• Confirm production meets format and QAPE thresholds.
• For Producer Offset: Pass the Significant Australian Content test or be an official co-production.

Step 2: Register the Company

• Set up an Australian-incorporated company to act as the production entity.
• Obtain an Australian Business Number (ABN).
• Register for Goods and Services Tax (GST) if turnover exceeds AUD $75,000.

Step 3: Prepare Documentation

• Production budget and finance plan
• Detailed QAPE cost breakdown
• Production schedule and shooting plan
• Cast and crew list (with residency details)
• Evidence of Australian spend and contracts

Step 4: Submit Application

• Apply through Screen Australia (Producer Offset and SAC assessment) or via the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (Location and PDV Offsets).
• Pay required administrative or processing fees.

Step 5: Receive Provisional Certificate

• Upon successful review, a Provisional Certificate is issued confirming eligibility for the applicable offset.

Step 6: Claim Rebate

• After project completion, submit a final QAPE certificate with all substantiating documentation.
• Lodge with the Australian Taxation Office (ATO) as part of the entity’s tax return.
• The offset is refunded as a tax credit, typically within 6–9 months of application.

Additional Notes

• Federal incentives can be stacked with state-level incentives (e.g., Screen Queensland, VicScreen).
• Productions involving international cast or crew may still qualify if QAPE thresholds and residency rules are observed.
• Australia’s infrastructure supports large-scale productions, including sound stages, skilled VFX labor, and post-production houses.

Ready to maximize your film incentives?

Partner with Hoodlum Film Fixers to navigate rebate programs, streamline compliance, and connect with trusted local partners. Let us handle the logistics so you can focus on creating. Contact us today to get started.