Australian Federal Government Announces Response to the Supporting Stories on our Screens Options Paper
Australian Federal Government Announces Response to the Supporting Stories on our Screens Options...
Australian Federal Government Announces Response to the Supporting Stories on our Screens Options Paper
In response to feedback and consultation for the Supporting Australian Stories on our Screens Options Paper, The Australian Federal Government has announced changes to Australia’s screen content regulation and support funding programs.
Screenwest understands these changes will have impacts on the local industry in Western Australia and implications for productions wishing to film in the state. We are currently working with our Industry Advisory Group to get a clearer understanding of and measure these potential impacts in addition to providing additional information to the WA industry as it arises. We are also determining whether we are able to make a further submission to the Government now the policy changes have been announced.
The key changes and new announcements have been summarised below, however enquiries regarding the changes to the film tax offsets should be directed to the Office for the Arts via filmenquiries@arts.gov.au.
If you have questions about a specific Producer Offset project, these should be directed to Screen Australia via pocu@screenaustralia.gov.au.
Changes to the PDV Offset and PDV, Location and Producer Offset
The Post, Digital and Visual Effects (PDV) Offset minimum qualifying Australian production expenditure threshold will be increased from AU$500,000 to AU$1 million.
- The eligibility to claim general business overhead expenses not directly related to the making of the production will be removed across all three tax offsets.
- Claims relating to Australian held copyright will be capped at 30 per cent of total production expenditure across all three offsets.
- As the Location Incentive eligibility reflects that of the Location Offset, the two measures that relate to overheads and copyright will also apply to the Location Incentive.
Changes to the Producer Offset
- The rate of the Producer Offset will be standardised at 30 per cent for eligible film and television production, regardless of the release platform. (Originally it was 20% for TV and 40% for theatrical feature film).
- The minimum qualifying Australian production expenditure threshold for feature length content supported through the Producer Offset will increase from AU$500,000 to AU$1 million.
- The 65 commercial hour episode cap for drama series will be removed under the Producer Offset.
- The clause under the Producer Offset that allows production costs incurred in other countries to be claimed (commonly known as the ‘Gallipoli Clause’) will be removed.
- The Producer Offset ‘above the line’ expenses cap of 20 per cent will be expanded to include non-feature documentary productions.
Timeline
- For the PDV Offset these amendments will come into effect for productions that commence post, digital and visual effects activity on, or after 1 July 2021.
- For the Producer Offset and Location Offset, these amendments will come into effect for productions that commence principal photography on, or after 1 July 2021.
As the Australian Screen Production Incentive is underpinned by the Income Tax Assessment Act 1997 changes will be implemented through legislative amendments.
Treasury and the Office for the Arts will be responsible for managing the legislative changes.
Content Quota Changes
The overall transmission quota of 55% of Australian content between 6am and 12am midnight will remain.
A directive to the Communications & Media Authority (ACMA) to revoke the existing Australian content standards and remake it as a points system based around genre and the production budget hour by the federal Minister for Communications, Cyber Safety & the Arts.
From 1 January 2021, commercial broadcasters will be required to score 250 points from a mix of documentary, drama and children’s programmes. The number of points a drama can score will depend on the budget per hour.
For subscription broadcasters (e.g. Foxtel) the expenditure requirement for drama channels will be reduced from 10% to 5% from July 1, 2021.
Streamers and Video On Demand Services (SVODs e.g. Netflix, Amazon & Stan) will have to report to the ACMA on their expenditure on Australian content.
Screen Australia Funding
The Australian Federal Government will provide an additional $33 million in funding to Screen Australia to support the production of Australian drama, documentary and children’s film and television content.
This includes:
- $30 million to Screen Australia over two years ($15 million per annum in 2021-22 and 2022-23). This direct funding will support Australian drama, documentary and children’s screen content across film and television.
- An additional $3 million over three years from 2020-21 to Screen Australia to support a Screen Writing and Script Development Fund.
Questions regarding this additional funding should be directed to Screen Australia.
Australian Children’s Television Foundation New Funding
The Federal Government is also providing additional funding to the Australian Children’s Television Foundation (ACTF).
- $20 million over two years from 2021-22.
- The additional funding will enable ACTF to support quality Australian children’s content to appear on screen.
Questions regarding the additional funding for the Australian Children’s Television Foundation should be directed to the Office for the Arts filmenquiries@arts.gov.au.
For more information and to read the full statement from the Australian Federal Government please visit the Minister for Communications, Cyber Safety and the Arts website.
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