News| Jul 16, 2020

Ausfilm applauded the announcement today by the Prime Minister Scott Morrison, the Minister for Communications, Cyber Safety and the Arts Paul Fletcher and Minister for Employment, Skills, Small and Family Business, Michaelia Cash of an additional AU$400 million added to the Australian Government’s existing screen production Location Incentive grant.

Ausfilm’s CEO Kate Marks said that “international screen production delivers sizeable amounts of expenditure in a short space of time, can tool up quickly, and creates employment immediately. Today’s announcement ensures Australia will now be in a position to secure a significant pipeline of large budget productions across Australia into 2021 and beyond and will increase our market share of global production activity.”

“The global screen sector has been valued at US$177 billion in 2019* and has increased exponentially in recent years – driven by consumer demand worldwide and proliferation of online streaming services. The increase to the Location Incentive enables Australia to tap into this demand and is a strategic driver for economic recovery.”

It is timely news for the Australian screen industry who have been hit hard by the pandemic much like the hospitality and travel sectors. The economic impact from international foreign productions stalling is estimated to be in the range of AU$725 million with hundreds of Australian crew and businesses out of work. Ms Marks added, “the additional AU$400 million will deliver significant employment and growth for our screen service export businesses, our crew and Australian cast. Thousands of Australians will now have the ongoing opportunity to work alongside – and collaborate with – some of the most experienced international filmmakers and screen practitioners at the top of their game. This sector also positively impacts other sectors such as tourism, hospitality and retail, to a significant degree.”

Australia is highly regarded by international filmmakers. For its talent, diverse locations and comfortable lifestyle, expert crew and service providers who are considered some of the best in the world.  The success to date that Australia has had in combatting the COVID-19 pandemic has generated even greater interest in Australia from international filmmakers and studios. Ausfilm estimates it has received AU$1.2 billion worth of real production enquiries from US-backed feature film and TV series looking to film in Australia. The additional AU$400 million to the Location Incentive grant will ensure Australia secures some of these productions.

Ms Marks says the success of the Location Incentive grant has been clear with the attraction of AU$950 million across 10 film and television productions since its implementation in mid-2018. “It has demonstrated to the Government the immense opportunity foreign productions offer in generating jobs for Australians, investing in screen practitioners and small to medium-sized businesses, enabling skills retention and growth along with investment in new technology, equipment and infrastructure. International production delivers tax revenue into the economy including significant amounts of Non-Resident tax. Almost all spending by international productions is on local employment and purchasing of goods and services in Australia.”

Ausfilm thanks the Australian Government, for recognising the importance of the Australian screen sector; the thousands of Australians who work in it; and the significant contribution it will make to their screen businesses, Australia’s creative industries and this country’s economic recovery. 

CONTACT AUSFILM

For clients and productions seeking more detailed information please contact Ausfilm’s Executive Vice President of International Production, Erin Stam via [email protected].

BORDER RESTRICTIONS AND EXEMPTIONS

There are currently strict travel restrictions on who can enter Australia. To enter Australia you require a valid visa and an exemption granted by the Australian Border Force Commissioner. Film and television production is now listed as one of the critical skills needed for economic recovery, which has streamlined and prioritised the granting of exemptions to enter Australia for production. Read more here.

AUSTRALIA’S FEDERAL GOVERNMENT TAX INCENTIVES & GRANT

Check out the detail of Australian Government’s screen production incentives here.

Also review Australia’s State Government screen production incentives and grants here.

FULL GOVERNMENT MEDIA RELEASE

Read Minister for Communications, Cyber Safety & the Arts, Paul Fletcher’s media release.

* Olsberg SPI Global Screen Production and COVID 19 Economic Recovery Report

BACKGROUND

The Australian Government offers a Location Offset of 16.5% for a minimum spend in Australia of AU$15 million and a Post and Digital Visual Effects Offset at 30% for projects that have undertaken physical production elsewhere in the world and utilise Australian PDV companies. At 16.5% the Location Offset is one of the lowest in the world. The 16.5% Location Offset can be combined with the Location Incentive grant enabling international productions to access a tax rebate of up to 30% for qualifying Australian production spend for location filming in Australia.

International productions that were filmed in Australia in 2019/20 and were interrupted by the pandemic and planning to resume shooting before the end of 2020 include Shang-Chi and the Legend of the Ten Rings (NSW); Shantaram (VIC) and Clickbait (VIC).

In 2018/19 international projects that completed in Australia include Dora and the Lost City of Gold; Monster Problems; Godzilla vs Kong; Preacher season 4 (TV); Reef Break (TV); Chinatown Cannon 2; Prem Bondhon, Saba’s WeddingIf Time Flows Back (TV) and Nirasha (TV).

International productions that were secured to complete post, sound, music and VFX work with Australian businesses include Shang-Chi and the Legend of the Ten Rings; Aquaman; Dora and the Lost City of Gold and Godzilla vs Kong which were also shot in Australia, as well as projects that shot elsewhere such as Black Widow; Cats; Candyman; Jumanji: The Next Level; Jungle Cruise; Terminator: Dark Fate; The Witches; Spider-Man: Far from Home; John Wick: Chapter 3: Parabellum, Men in Black: International; IT Chapter 2; DumboHalloween; Dark Phoenix; Captain Marvel, JoJo Rabbit; and television series such as Preacher season 4, Reef Break, Stranger Things; and The Boys.

Australia has attracted 10 international feature film and television series to Australia since the Australian Government’s introduction of the AU$140 million Location Incentive fund valued at AU$950 million. They are: Legendary Entertainment’s Godzilla vs. Kong; Sony Television and AMC’s Preacher season 4; Paramount Pictures’ Monster Problems and Shantaram (TV) ; ABC Studios’ Reef Break (TV); Marvel Studios’ Shang-Chi and the Legend of the Ten Rings and Thor: Love & Thunder; NBC Universal/Matchbox Pictures’ & Netflix’s Clickbait; Dick Cook Studios’ The Rangers’ Apprentice and The Alchemyst.

MEDIA ENQUIRIES

Rachelle Gibson
Director of Marketing & Industry Partnerships
Ausfilm
T: + 61 2 9383 4192
[email protected]