Work in Australia: Tax breaks for media
07 September 2016 by News DeskWork in Australia: Tax rebates are available for Australian or foreign resident media companies.
Work in Australia: Tax rebates support large budget film and television projects shot in Australia (Location Offset) or productions doing post-production, digital and visual effects work in Australia (PDV Offset).
Australian or foreign resident companies with an Australian business number working through a permanent establishment in Australia are eligible to apply and you can apply at any time.
Funding: a rebate of 16.5% is available for the Location Offset and 30% for the PDV Offset.
Two tax rebates are available aimed at supporting the Australian screen industry:
The Location Offset— a 16.5 per cent rebate for the production of large-budget film and television projects shot in Australia
The PDV Offset— a 30 per cent rebate for work on post, digital and visual effects production (PDV) in Australia, regardless of where a project is shot.
Work in Australia: Tax breaks for media
Producers are advised to read official guidelines before they start production and before filling out an application form for provisional or final certification. Speak to a member of the Location and PDV Offset team to clarify any issues that could arise when you apply.
The Location Offset is a 16.5 per cent rebate designed to encourage large-budget film and television projects to film in Australia. It aims to provide increased opportunities for Australian casts, crew and other screen production service providers to participate in these productions.
You can apply for the Location Offset once you are no longer incurring qualifying Australian production expenditure (QAPE).
Your application will be assessed by the Film Certification Advisory Board. If eligible the Minister for the Arts will issue a certificate for the Location Offset, which includes a determination of QAPE.
You need this certificate to claim the offset. The certificate should be included with your relevant year Australian tax return, and the offset amount will be paid out less any existing tax liabilities.
The PDV Offset is a 30 per cent rebate that supports work on post-production, digital and visual effects production in Australia, regardless of where a project is shot.
It aims to help the Australian visual effects, post-production and animation sector develop its reputation as one of the best in the world.
You can apply for the PDV Offset once you are no longer incurring QAPE related to PDV activities.
Work in Australia: Tax breaks for media
Your application will be assessed by the Film Certification Advisory Board. If eligible the Minister for the Arts will issue a certificate for the PDV Offset. You need this certificate to claim the offset. The certificate should be included with your relevant year Australian tax return, and the offset amount will be paid out less any existing tax liabilities.
Provisional certificates: You can apply for a provisional certificate any time to find out whether your production is likely to qualify for either offset.
A provisional certificate does not provide a guarantee of receiving a final certificate; but it does indicate whether you may be eligible for a final certificate. The assessment of provisional applications also provides an indication of whether the projected expenditure is eligible under the relevant offset.
Changes have been made to the laws for Location and PDV Offsets.
For the Location Offset productions starting principal photography or production of the animated image in Australia, the offset rate is now 16.5 per cent, and additional expenditure on audit, legal, insurance and company fees are eligible as qualifying Australian production expenditure.
It is no longer required to spend at least 70 per cent of the total production budget in Australia for productions spending between $15 million and $50 million.
The PDV Offset rate is now 30 per cent, and additional expenditure on audit, legal, insurance and company fees a eligible as qualifying Australian production expenditure
The minimum qualifying expenditure threshold for eligibility is now $500,000.
Film tax incentives 10BA and 10B were replaced in 2007 by the Producer Offset. The concessional status for investment in productions holding a valid 10B or 10BA certificate ended on 30 June 2009.
For more info go to: Arts.Gov.Au
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