Industry expects tax break to deliver big break

IT’S a tax break for US movie studios and a big break for the local industry.

The new $140 million Location Incentive has been hailed as “outstanding news” for the local industry’s crews, technicians, studios, VFX and post-production facilities — and the businesses that benefit from big film shoots.

Ausfilm, the peak industry association that represents film and TV businesses, hailed the new rebate as a positive policy change sure to attract more foreign productions.

Ausfilm CEO Deb Richards said large-scale international (footloose) productions tipped in more than $600 million in foreign direct investment to the economy in FY17.

“With a certain and clear competitive Location Incentive, Australia will be able to secure up to another $200 million per annum in additional production value,” she said.

Ms Richards said the last three big-budget international productions filmed in Australia — Gold Coast blockbusters Aquaman and Thor: Ragnarok and the Sydney-based Alien: Covenant — chose to film here after the Federal Government agreed to lift the location offset from 16.5 to 30 per cent.

“Without this competitive incentive, these films would have gone elsewhere,” she said.

Ms Richards said large scale international screen productions delivered benefits for associated businesses from hotels and taxis to hardware stores, equipment suppliers and restaurants.

“This will also provide work not just in our screen sector but also across a wide range of sectors in Australia,” she said..

“It will deliver new sources of revenue and innovation. It also contributes to developing skills and training opportunities of Australia’s crews and technicians in businesses like sound, music and post-production or visual effects.”