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  • Media Reforms Package

    On 30 September 2020, the Australian Government announced a Media Reforms Package to support the Australian screen industry by making changes to the Producer Tax Offset, and various threshold, eligibility and integrity amendments across the three film tax offsets.

    The amendment to implement the Media Reforms Package – screen sector support will:

    • Harmonise the Producer Tax Offset at a 30 per cent rate for all eligible formats;
    • Increase the threshold for feature length content supported through the Producer Tax Offset from $500,000 to $1 million.
    • Remove the 65 commercial hour cap for drama series.
    • Remove the ability to claim goods and services costs incurred in other countries towards the Producer Tax Offset.
    • Remove the ability to claim general business overhead expenses across all three tax offsets.
    • Cap ‘above the line’ expenses to 20 per cent for non-feature documentary productions so that it aligns with the requirements for other eligible productions under the Producer Tax Offset.
    • Cap claims relating to copyright costs across all three tax offsets to 30 per cent of total production expenditure.
    • Cap claims of production expenditure, for the Producer Tax Offset, to the original version of the film and one re-version of the film.

    Changes to the Location and Producer Tax offset will affect productions starting principal photography on or after 1 July 2021. Changes to the Post, Digital and Visual effects (PDV) tax offset affect films starting post digital and visual effects production on or after 1 July 2021. For more information about the changes, go to Fact sheet - screen production funding and incentives reformsExternal Link.

    There was a further announcementExternal Link made on 11 April 2021 to only increase the Producer Offset rate for non-feature film productions from 20 per cent to 30 per cent and retain the rate for feature films at 40 per cent.

    Legislation and supporting material

      Last modified: 17 Jun 2021QC 65968