National Cinema down under: Major changes in the Australian film industry

[re-edited: May 30, 6:30 EST]

The Australian film industry, which is one of the closest models to our own, has just overhauled the way it does business, and made the biggest changes to the industry, since the tax incentives of 1981 which caused a major boom in domestic Australian film production.

The Australian government's $282.9 million commitment to Australian film and television is to ensure that the industry become "more competitive and responsive to audiences." Most notably, for films that have "wide audience appeal."

The Australian film industry, which is one of the closest models to our own, has just overhauled the way it does business, and made the biggest changes to the industry, since the tax incentives of 1981 which caused a major boom in domestic Australian film production.

The Australian government's $282.9 million commitment to Australian film and television is to ensure that the industry become "more competitive and responsive to audiences." Most notably, for films that have "wide audience appeal."

As part of the changes, Australian Screen Authority, a new super-agency with a totalitarian name is being formed to replace the existing Australian Film Commission, Film Finance Corporation and Film Australia.

Through the use of new tax rebates for film and television production, post - including digital effects, and locations, will allow Australian producers to raise substantial private investment from the equity the rebates deliver.

Of the new rebates, a new production tax rebate of 40 percent of eligible Australian expenditure to producers of qualifying feature films, with a 20 per cent rate for qualifying television productions, are the most significant. The location rebate was additionally expanded from 12.5 percent, to 15 percent, which aim is to make Australian studios more attractive to Hollywood productions.

There were also changes to the definition of what constitutes an "Australian film" "with sources of financing and ownership of copyright no longer included as specific factors in determining eligibility" [emphasis added].

What is also extremely significant in relation to the Canadian film industry is the priority on cultural funding. The bulk of ASA’s resources on productions are ear marked for national cultural significance (documentaries, children's programming, new producer's work,indigenous content etc.). Those productions which need help and are not attractive to private finance can be provided supplementary funding up to 75 percent.

If the incentives work, and the most certainly seem like they will, hopefully the Canadian Government will reform Telefilm, and implement a plan similar to the Australian model with a much needed cash infusion.

While our industry's concern is similar (despite having a larger population) - we have a need for attracting large multi-million Hollywood productions and valuable service work, successful commercial domestic productions, and smaller, yet crucial cultural productions - our industry is in greater peril.

We face the perplexing problem of being the closest neighbour of the largest English language film producers in the world, and they view our country as a part of their domestic market.

Media Release: Backing the Australian film industry

Media Release: Boost for large budget film production in Australia

Media release: New producer incentive for Australian film and television productions
Australian Producer rebate fact sheet PDF
Location Rebate Fact Sheet PDF
Tax Incentives in the Australian Film Industry, 1999 (PDF)