Film and television financing in Australia
Encyclopedia
Film and TV financing in Australia refers to government assistance to TV and cinema in Australia. Over the past 30 years, government assistance 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 Australia
n feature films (local films and co-productions) has come from government sources. This was mainly from the Film Finance Corporation (FFC), until 2008 when the FFC merged with the Australian Film Commission
and Film Australia
to become Screen Australia
. However, this group includes a number of films, such as Moulin Rouge (2001) and Happy Feet (2006), that were substantially financed by 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 Government introduced the Australian Screen Production Incentive, a package of tax incentives designed to encourage private investment in Australian-produced films, television shows and documentaries.
gave 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.
John Gorton
was Prime Minister of Australia
from 1968–1971 and initiated several avenues of Government support for film and the arts, establishing the Australian Council for the Arts, the Australian Film Development Corporation and the National Film and Television Training School. Prime Minister Gough Whitlam
continued to support Australian film. The South Australian Film Corporation
was established in 1972 to promote and produce films, while the Australian Film Commission
was created in 1975 to fund and produce internationally competitive films.
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 1936
allowed 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 legislation has united the AFC and FFC, along with Film Australia, in a new entity, which is now known as "Screen Australia
."
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).
A producer offset of 40% of “eligible Australian expenditure” for production of Australian feature films, and 20% for television productions (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). Screen Australia took over the certification process from the FFC in July 2008.
Note: The incentive is officially classified as an offset by the Department of Communications, Information Technology and the Arts (DCITA), and Australian popular media and the industry at large commonly refersvto it as the 'producer rebate'.
A location offset replaced 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 have access to a 15% 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% is available for PDV projects that spend at least $5 million in qualifying PDV production spent 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.
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 Babe: Pig in the City
(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
).
agreements with nine countries. Official co-productions
are eligible for nationally-available benefits or programs of assistance. In Australia, this has included the 10B and 10BA schemes, the 12.5% Refundable Film Tax Offset (RFTO) 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 partners for Australian feature films have been (in descending order) the United Kingdom
, Canada
, France
and New Zealand
. In television drama, the main partners have been Canada, the United Kingdom, the United States
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
, are both unofficial Australian/US co-productions.
About Australia
State bodies
Since 1995/96, 25-30% of funding for Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n feature films (local films and co-productions) has come from government sources. This was mainly from the Film Finance Corporation (FFC), until 2008 when the FFC merged with the Australian Film Commission
Australian Film Commission
The Australian Film Commission was an Australian government agency with a mandate to promote the creation and distribution of films in Australia as well as to preserve the country's film history. It also had a production arm responsible for production and commissioning of films for government...
and Film Australia
Film Australia
Film Australia was a company established by the Government of Australia to produce films about Australia. Its mission was to create an audio-visual record of Australian culture, through the commissioning, distribution and management of programs that deal with matters of national interest or...
to become Screen Australia
Screen Australia
Screen Australia is the Federal Government’s key funding body for the Australian screen production industry. Its functions are to support and promote the development of a highly creative, innovative and commercially sustainable industry....
. However, this group includes a number of films, such as Moulin Rouge (2001) and Happy Feet (2006), that were substantially financed by 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 Government introduced 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 WalesGovernment of New South Wales
The form of the Government of New South Wales is prescribed in its Constitution, which dates from 1856, although it has been amended many times since then...
gave 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.
John Gorton
John Gorton
Sir John Grey Gorton, GCMG, AC, CH , Australian politician, was the 19th Prime Minister of Australia.-Early life:...
was Prime Minister of Australia
Prime Minister of Australia
The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful...
from 1968–1971 and initiated several avenues of Government support for film and the arts, establishing the Australian Council for the Arts, the Australian Film Development Corporation and the National Film and Television Training School. Prime Minister Gough Whitlam
Gough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...
continued to support Australian film. The South Australian Film Corporation
South Australian Film Corporation
South Australian Film Corporation is a South Australian Government statutory corporation established in 1972. Former State Premier Don Dunstan played an instrumental role in the foundation of the Corporation and its early film production activities....
was established in 1972 to promote and produce films, while the Australian Film Commission
Australian Film Commission
The Australian Film Commission was an Australian government agency with a mandate to promote the creation and distribution of films in Australia as well as to preserve the country's film history. It also had a production arm responsible for production and commissioning of films for government...
was created in 1975 to fund and produce internationally competitive films.
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 1936
Income Tax Assessment Act 1936
Income Tax Assessment Act 1936 is an act of the Parliament of Australia. It's one of the main statutes under which income tax is calculated. The act is gradually being rewritten into the Income Tax Assessment Act 1997, and new matters are generally now added to the 1997 act.The reason for...
allowed 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 legislation has united the AFC and FFC, along with Film Australia, in a new entity, which is now known as "Screen Australia
Screen Australia
Screen Australia is the Federal Government’s key funding body for the Australian screen production industry. Its functions are to support and promote the development of a highly creative, innovative and commercially sustainable industry....
."
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).
State agencies
The state agencies, listed by their current titles, are:- Film VictoriaFilm VictoriaFilm Victoria is a statutory authority of the State Government of Victorian, Australia that provides strategic leadership and assistance for film, television, and digital media production in the Australian state of Victoria....
- the New South Wales Film and Television OfficeNew South Wales Film and Television OfficeThe NSW Film & Television Office is the official screen agency of the New South Wales Government. Its charter says its role is:*to provide financial and other assistance to the film and television industry in carrying out the industry's activities in New South Wales and to disseminate information...
(NSWFTO), - Screen Queensland (formerly Film Queensland, subsequently Pacific Film and Television Commission),
- ScreenWestScreenWestScreenWest ScreenWest is Western Australia's screen funding and development agency, committed to working in partnership with the screen industry to develop, support and promote film, television and digital media production in Western Australia. ScreenWest receives funding from the Government of...
(formerly the West Australian Film Corporation) - The South Australian Film CorporationSouth Australian Film CorporationSouth Australian Film Corporation is a South Australian Government statutory corporation established in 1972. Former State Premier Don Dunstan played an instrumental role in the foundation of the Corporation and its early film production activities....
Australian Screen Production Incentive
The Australian Screen Production Incentive was introduced in 2007 to replace all the previous schemes. The key elements of the scheme include:A producer offset of 40% of “eligible Australian expenditure” for production of Australian feature films, and 20% for television productions (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). Screen Australia took over the certification process from the FFC in July 2008.
Note: The incentive is officially classified as an offset by the Department of Communications, Information Technology and the Arts (DCITA), and Australian popular media and the industry at large commonly refersvto it as the 'producer rebate'.
A location offset replaced 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 have access to a 15% 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% is available for PDV projects that spend at least $5 million in qualifying PDV production spent 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.
Private investment
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
George Miller (producer)
George Miller is an Australian film director, screenwriter, producer, and former medical doctor. He is most well known for his work on the Mad Max movies, but has been involved in a wide range of projects, including the Oscar-winning Happy Feet and "Babe" family films.Miller is the older brother...
’s Happy Feet
Happy Feet
Happy Feet is a 2006 American-Australian computer-animated family film with music, directed and co-written by George Miller. It was produced at Sydney-based visual effects and animation studio Animal Logic for Warner Bros., Village Roadshow Pictures and Kingdom Feature Productions and was released...
(financed by Warner Bros.
Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
) and Babe: Pig in the City
Babe: Pig in the City
Babe: Pig in the City is a 1998 sequel to the 1995 film Babe. It occurs in the fictional city of Metropolis. Due to the unexpected darker and more mature subject matter , the film was not received as well as the first Babe film was, as it flopped at the box office and reviews were generally...
(Universal Studios
Universal Studios
Universal Pictures , a subsidiary of NBCUniversal, is one of the six major movie studios....
), Baz Luhrmann
Baz Luhrmann
Mark Anthony "Baz" Luhrmann is an Australian film director, screenwriter, and producer best known for The Red Curtain Trilogy, which includes his films Strictly Ballroom, William Shakespeare's Romeo + Juliet and Moulin Rouge!...
’s Moulin Rouge!
Moulin Rouge!
Moulin Rouge! is a 2001 romantic jukebox musical film directed, produced, and co-written by Baz Luhrmann. Following the Red Curtain Cinema principles, the film is based on the Orphean myth, La Traviata, and La Bohème...
(Fox
Fox Studios Australia
Fox Studios Australia is a major movie studio located in Sydney, Australia, occupying the site of the former Sydney Showground at Moore Park...
), and European-financed films such as Rolf de Heer
Rolf de Heer
Rolf de Heer is a Dutch film director, writer and producer living in Australia. De Heer was born in Heemskerk in The Netherlands but migrated to Sydney when he was eight years old. He attended the Australian Film Television and Radio School in Sydney. His company is called Vertigo Productions and...
’s Dance Me to My Song
Dance Me to My Song
Dance Me to My Song is a 1998 Australian drama film directed by Rolf de Heer. It was entered into the 1998 Cannes Film Festival. The film grossed $175,138 at the box office in Australia.-Cast:* John Brumpton - Eddie* Danny Cowles - Joe...
(Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
) and Paul Cox
Paul Cox
Paulus Henriqus Benedictus "Paul" Cox is an award-winning Australian film director.Cox was born in Venlo, Limburg, the Netherlands, the son of Else , a native of Germany, and Wim Cox, a documentary film producer. Cox emigrated to Australia in 1965...
’s Innocence (Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
).
Co-productions
The Australian Government has co-productionInternational co-production
An international co-production is a production where two or more different production companies are working together, for example in a film production...
agreements with nine countries. Official co-productions
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 under the...
are eligible for nationally-available benefits or programs of assistance. In Australia, this has included the 10B and 10BA schemes, the 12.5% Refundable Film Tax Offset (RFTO) 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 partners for Australian feature films have been (in descending order) the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. In television drama, the main partners have been Canada, the United Kingdom, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and France.
Unofficial co-productions are not eligible for the same benefits as official co-productions. Examples include Crocodile Dundee in Los Angeles
Crocodile Dundee in Los Angeles
Crocodile Dundee in Los Angeles is a 2001 Australian-American comedy film, directed by Simon Wincer and starring Paul Hogan. It is the sequel to the 1988 film Crocodile Dundee II, which itself was the sequel to 1986's Crocodile Dundee and the third and final film of the trilogy...
and Farscape
Farscape
Farscape is an Australian-American science fiction television series filmed in Australia and produced originally for the Nine Network. The series was conceived by Rockne S. O'Bannon and produced by Jim Henson Productions and Hallmark Entertainment...
, are both unofficial Australian/US co-productions.
See also
General information- FilmmakingFilmmakingFilmmaking is the process of making a film, from an initial story, idea, or commission, through scriptwriting, casting, shooting, directing, editing, and screening the finished product before an audience that may result in a theatrical release or television program...
- Film financeFilm financeFilm finance is an aspect of film production that occurs during the development stage prior to pre-production, and is concerned with determining the potential value of a proposed film...
About Australia
- History of the Australian Broadcasting CorporationHistory of the Australian Broadcasting CorporationThe history of the Australian Broadcasting Corporation spans from its origins as regulatory body to its expansion as a content provider in radio, television and new media.-Origins:...
- Screen Producers AssociationScreen Producers AssociationThe Screen Producers Association of Australia was formed in 1956 and was originally named the Film and Television Production Association....
- List of Australian films
- Cinema of AustraliaCinema of AustraliaCinema of Australia, more commonly referred to as the Australian film industry, refers to the system of production, distribution, and exhibition of films in Australia. Film production commenced in Australia in 1906 with the production of The Story of the Kelly Gang, the earliest feature film made...
External links
National bodies- Screen Australia (SA)
- Australian Film Television and Radio School (AFTRS)
- AFTRS Centre for Screen Business
- Australia Council
- Australian Film Institute (AFI)
- Australian Screen Directors Association (ASDA)
- Film & Television Institute, Perth (FTI)
- Australian government, Culture and recreation portal - Film in Australia
State bodies