- Film and television financing in Australia
Film and TV financing in Australia over the past 30 years has involved a mixture of government support, distributor/ broadcaster involvement and private investment. To a significant extent, government policies have shaped the form and scale of financing.
Since 1995/96, 25-30% of funding for
Australian feature films (local films and co-productions) has come from government sources, mainly from the Film Finance Corporation (FFC). It should be noted, however, that this group includes a number of films, such as "Moulin Rouge" (2001) and "Happy Feet" (2006), that were substantially financed via the Hollywood studios. For independent Australian films, the proportion of government support is much higher.
Meanwhile, TV drama has received about half of its financing from the industry itself and about 15% from government sources, while foreign investment has also been significant (reaching a peak of 49% in 1999/2000).
In 2007, the
Australian Governmentintroduced the Australian Screen Production Incentive, a package of tax incentives designed to encourage private investment in Australian-produced films, television shows and documentaries.
History of Government support
At a number of times since the inception of the Australian film industry, the Australian government has experimented with quota-based support models, largely without success. At the same time, direct financial support for the industry was less forthcoming. The
Government of New South Walesgave minor financial assistance to a number of productions in the 1930s. In 1945 the federal government created the Australian National Film Board, with a brief to produce documentaries. It was later known as the Commonwealth Film Unit and ultimately as Film Australia.
Feature filmmaking in Australia, however, did not receive comprehensive government support until the 1970s.
During the 1970s, most Australian features were funded by the Australian Film Commission (established 1975) and its state government counterparts. The state agencies, listed by their current titles, are:
New South Wales Film and Television Office(NSWFTO),
Pacific Film and Television Commission(formerly Film Queensland),
ScreenWest(formerly the West Australian Film Corporation), and
South Australian Film Corporation.
In the 1980s private financing increased as a result of tax incentives for Australian-made film and television productions. Division 10BA (1981) of the
Income Tax Assessment Act 1936allowed investors a 150% tax concession on their investment at risk. 10B (1978) applied to a wider selection of project categories, and offered a concession spread over two financial years once the project was generating income. These concessions were whittled away throughout the 1980s, as the government became anxious about lost taxation revenue. By 1989, 10BA had become a flat 100% write-off.
During the 1990s, direct government support once again became the dominant source of feature film funding. The Australian Film Finance Corporation (FFC), established in 1988/89, became the main instrument of this support. It has funded 1,079 projects since then, to a budget value of $2.58 billion. Projects certified under 10BA were also eligible for direct investment from the FFC, while 10B projects were not.
The Australian Film Commission (AFC), once the government’s main vehicle for production funding, was now focussed primarily on development, marketing and research activities. Recently proposed [http://www.dcita.gov.au/arts_culture/film/screen_australia_draft_bill legislation] will unite the AFC and FFC, along with Film Australia, in a new entity, which will be known as "
Another recent support mechanism was the Film Licensed Investment Company (FLIC) scheme. Each FLIC would invest in a slate of Australian-made productions, thus spreading the risk across a portfolio. Investors who bought shares in a FLIC would receive a 100% tax concession. The FLIC scheme was introduced in 1999 and renewed in 2005, but no further licences will be granted due to the introduction of the Producer Offset in 2007 (see below).
A refundable film tax offset (RFTO), designed to attract large-budget overseas productions to shoot in Australia, was introduced in 2001. It covered feature films, mini-series, telemovies and TV series. It is to be superseded by the new Location Offset (see below).
Australian Screen Production Incentive
The Australian Screen Production Incentive, introduced in 2007, will replace all of the existing schemes listed above. It includes these key elements:
A Producer Offset will provide a 40% rebate on “eligible Australian expenditure” for producers of Australian feature films, and 20% for television producers (projects may include series, telemovies, mini-series and documentaries). "Qualifying Australian Production Expenditure" (QAPE) covers expenditure made on goods or services provided in Australia, or provided overseas by Australian residents. QAPE on ‘above the line’ costs (development costs and fees paid to key cast and creative personnel) will be capped at 20% of the production budget.
To be eligible for the Producer Offset, feature films require a guaranteed cinema release and QAPE in excess of $1m. Minimum QAPE for documentaries is $250,000 per hour (no minimum total spend), television series $1 million (and $500,000 per hour), telemovies $1 million (and $800,000 per hour) and short form animation $250,000 (and $250,000 per quarter hour).The certification process will be handled by the FFC initially, and by the new entity, Screen Australia, from July 2008.
Note: Although this incentive is officially classified as an offset by DCITA (Department of Communications, Information Technology and the Arts), Australian popular media and the industry at large have tended to refer to it as the 'Producer Rebate'.
A Location Offset will replace the Refundable Film Tax Offset (RFTO). All eligible productions (including feature films, telemovies, and television mini-series and series) that spend at least $15 million in qualifying Australian production expenditure will have access to a 15% per cent offset (increased from the RFTO’s 12.5%). Where qualifying expenditure is between $15 million and $50 million, 70% of total expenditure must be spent on production activity in Australia. Films which spend over $50 million in QAPE automatically qualify for the offset.
A new Post, Digital and Visual (PDV) Offset of 15% will be available for PDV projects that spend at least $5 million in qualifying PDV production spend in Australia, whether or not the production is shot in Australia. This offset can be used an alternative to, but not in conjunction with, the Location Offset. The Department of Communications, Information Technology and the Arts (DCITA) administers the Location and PDV Offsets.
For more information on these offsets see [http://www.dcita.gov.au/arts_culture/film/200708_australian_screen_production_incentive here] . Taxation benefits for investors are the responsibility of the Commissioner of Taxation and the Australian Tax Office (ATO); see [http://www.ato.gov.au/individuals/ the ATO website] and search for the word ‘film’.
Private investment in the Australian screen content industry peaked in 2001/02 and 2002/03, mainly as a result of the pilot Film Licensed Investment Company (FLIC) scheme. The 2004/05 year saw a further peak, owing to the production of the Australian feature film Jindabyne, which was majority funded by private investors.
Financing from overseas sources has supported a number of feature films with internationally-known Australian directors. Examples include George Miller’s "
Happy Feet" (financed by Warner Bros.) and "" ( Universal Studios), Baz Luhrmann’s " Moulin Rouge!" (Fox), and European-financed films such as Rolf de Heer’s " Dance Me to My Song" ( Italy) and Paul Cox’s "Innocence" ( Netherlands).
The Australian Government has co-production agreements with nine countries. Official co-productions are eligible to apply for nationally-available benefits or programs of assistance. In Australia, this has included the 10B and 10BA schemes, the 12.5% RTFO and FFC funding.
Australian feature film co-productions have increased from 13 in the 1990s to 14 between July 2000 and July 2006. The most common offshore partners for Australian features are (in descending order) the
United Kingdom, Canada, Franceand New Zealand. In television drama, the main partners have been Canada, the UK, the US and France.
Unofficial co-productions are not eligible for the same benefits as official co-productions. Examples include "
Crocodile Dundee in Los Angeles" and " Farscape", which are both unofficial Australia/US co-productions.
History of the Australian Broadcasting Corporation
Screen Producers Association
List of Australian films
Cinema of Australia
* [http://www.afc.gov.au/ Australian Film Commission (AFC)]
* [http://www.aftrs.edu.au Australian Film Television and Radio School (AFTRS)]
* [http://csb.aftrs.edu.au AFTRS Centre for Screen Business]
* [http://www.filmaust.com.au Film Australia]
* [http://www.ffc.gov.au/ Australian Film Finance Corporation (FFC)]
* [http://www.ozco.gov.au/ Australia Council]
* [http://www.afi.org.au/ Australian Film Institute (AFI)]
* [http://www.asdafilm.org.au/ Australian Screen Directors Association (ASDA)]
* [http://www.fti.asn.au/ Film & Television Institute, Perth (FTI)]
* [http://www.cultureandrecreation.gov.au/articles/film/ Australian government, Culture and recreation portal - Film in Australia]
* [http://www.pftc.com.au Pacific Film & Television Commission]
* [http://www.film.vic.gov.au Film Victoria]
* [http://www.safilm.com.au/ South Australian Film Corporation (SAFC)]
* [http://www.fto.nsw.gov.au/ New South Wales Film and Television Office (NSWFTO)]
* [http://www.http://www.screenwest.com.au/ ScreenWest]
*Australian Film Commission. 2005a. [http://www.afc.gov.au/downloads/policies/early%20history_final1.pdf “The First Wave of Australian Feature Film Production: From Early Promise to Fading Hopes.”] From AFC website.
*Australian Film Commission. 2005b. [http://archive.dcita.gov.au/__data/assets/pdf_file/51588/24._Australian_Film_Commission.pdf "Submission to the Department of Communications, Information Technology and the Arts Review of Divisions 10B and 10A."] From DCITA website.
*Australian Film Commission. 2007a. [http://www.afc.gov.au/gtp/govtfund.html “Industry Overview: Government Funding.”] In "Get the Picture" online.
*Australian Film Commission. 2007b. [http://www.afc.gov.au/gtp/production.html “What Australians are Making: Production Industry.”] . In "Get the Picture" online. See in particular the following sections:
** [http://www.afc.gov.au/gtp/mpfeaturesfinance.html Sources of finance for Australian and co-production features;]
** [http://www.afc.gov.au/gtp/mpfeaturesinvestors.html Investor contribution;] (for feature films)
** [http://www.afc.gov.au/gtp/mpfeaturesfocusfunding.html Focus: Trends in the core Australian feature slate.]
** [http://www.afc.gov.au/gtp/mptvdramafinance.html Sources of finance for Australian and co-production TV drama;]
** [http://www.afc.gov.au/gtp/mpdocosfinancesrc.html Sources of finance;] (for documentaries)
**Production incentives: [http://www.afc.gov.au/gtp/mptax.html Overview;] [http://www.afc.gov.au/gtp/mptax10ba.html The operation of 10BA;]
*Department of Communications, Information Technology and the Arts (Australia). 2007a. [http://www.dcita.gov.au/__data/assets/pdf_file/73240/Draft_Screen_Australia_Bill_2007.pdf "Exposure Draft Screen Australia Bill."] From DCITA website.
*Department of Communications, Information Technology and the Arts (Australia). 2007b. [http://www.dcita.gov.au/__data/assets/pdf_file/73241/Information_Sheet_-_Screen_Agency_Draft_Bill.pdf "Information Sheet - Screen Australia Draft Bill."] From DCITA website.
*Department of Communications, Information Technology and the Arts (Australia). 2007c. [http://www.dcita.gov.au/__data/assets/pdf_file/67751/Location_and_PDV_Offsets_fact_sheet_07-08.pdf “Location and PDV Offsets Fact Sheet.”] From DCITA website.
*Department of Communications, Information Technology and the Arts (Australia). 2007d. [http://www.dcita.gov.au/__data/assets/pdf_file/67753/Producer_Offset_fact_sheet_07-08.pdf “Producer Offset Fact Sheet.”] From DCITA website.
*Stratton, David. 1990. "The Avocado Plantation: Boom and Bust in the Australian Film Industry." Sydney: Pan Macmillan.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Official film and television co-production in Australia — An international film or television co production is a production made by production companies in different countries. This note focuses on ‘official’ Australian co productions, that is, co productions that meet the requirements for benefits… … Wikipedia
Film budgeting — refers to the process by which a line producer, unit production manager or filmmaker prepares a budget for a film production. This document, which could be over 150 pages long, is used to secure financing for the film and lead to pre production… … Wikipedia
Film noir — Two silhouetted figures in The Big Combo (1955). The film s cinematographer was John Alton, the creator of many of film noir s iconic images … Wikipedia
Cinema of Australia — The earliest known feature length narrative film in the world was the Australian production, The Story of the Kelly Gang (1906) … Wikipedia
The Wizard of Oz (1939 film) — The Wizard of Oz Theatrical release poster Directed by Victor Fleming Uncredited: Norman Taurog Richard Thorpe … Wikipedia
Science fiction on television — Science fiction first appeared on television during the golden age of science fiction, first in Britain (UK) and then in the United States (US). Special effects and other production techniques allow creators to present a living visual image of an … Wikipedia
Australian Film Institute Awards — Infobox award name = Australian Film Institute Awards current awards = 50th Australian Film Institute Awards description = Excellence in Australian cinematic achievements presenter = Australian Film Institute country = AUS year = 1958 (to honor… … Wikipedia
American Beauty (film) — American Beauty Theatrical release poster Directed by Sam Mendes … Wikipedia
Melbourne International Film Festival — MIFF logo Location Melbourne, Australia Founded 1951 … Wikipedia
British film industry — The influence of the United States on British cinema is so overwhelming that the very existence of an indigenous British film industry is question able. Leading British film critics Sarah Street, Geoffrey Nowell Smith, John Hill, Duncan Petrie … Encyclopedia of contemporary British culture