Film tax offsets

The government announced as part of the Budget Measures 2011-12, the following enhancements to the film tax offset, as a result of the recent review of the Australian Independent Screen Production Sector:

• the producer offset expenditure is lowered to $500,000
• direct funding is provided for low budget documentaries that fall under the $500,000 expenditure threshold
• the rate of the location offset will increase from 15% to 16.5%
• the post, digital and visual effects (PDV) offset will increase from 15% to 30%
• some additional screen production costs can be claimed as qualifying Australian production expenditure (QAPE) under the film tax offsets
• television series will benefit from the producer offset for the first 65 broadcast hours (replacing the current 65 episode limit)
• goods and services tax will be excluded in determining QAPE for the film tax offsets.

The amendments to the location offset apply from 10 May 2011.

The amendments to the PDV offset and the production offset apply from 1 July 2011.

Legislation and supporting material

Tax Laws Amendment (2011 Measures No.7) Act 2011 (147 of 2011) received royal assent on 29 November 2011.

Explanatory Memorandum of Tax Laws Amendment (2011 Measures No.7) Act 2011.

More information Refer to Budget Measures 2011-12.