Changes to the Producer Offset Regime
07-July-2021
As part of a package of support measures for the film and television industry, which the Commonwealth Government announced in 2020, the following have come into effect as from 1 July 2021.
The changes relate specifically to the Producer Offset and relate to productions commencing principal photography on or after 1 July 2021.
The amendments are:
-
the Producer Offset will be a 30 per cent rebate for all eligible formats
-
the minimum qualifying Australian production expenditure (QAPE) threshold will be increased to $1 million for feature length content
-
the ‘Gallipoli clause’, which allows some costs incurred outside of Australia to be claimed as QAPE, will be removed
-
the 65 commercial hour cap will be removed for drama productions
-
the above-the-line (ATL) QAPE cap will be extended to non-feature documentaries
-
the level of Australian held copyright that can be claimed will be capped at 30 per cent of total production expenditure, and
-
overheads will no longer be eligible to be claimed as QAPE.
In another positive development, with effect from the same date (1 July – commencement of principal photography) the Government has increased the Producer Offset rebate to 40 per cent for feature films.
