The Location Offset & the Location Incentive

The Location Offset is a 16.5% refundable tax offset (rebate) calculated on Qualifying Australian Production Expenditure (QAPE). Additionally, you can apply for the Location Incentive grant, a separate program offering funding of $540 million for eligible projects commencing from 1 July 2019
to 30 June 2027.

In July 2020 the Australian Government added AU$400 million to the Location Incentive grant which is available from 1st July 2019 to 30 June 2027.  This is in addition to the $140 million announced in May 2018. The grant total is AU$540 million.

The Location Incentive grant is a merit-assessed grant where funding may be offered up to 13.5% of a project’s Qualifying Australian Production Expenditure. This grant complements and is additional to, the Government’s existing 16.5% Location Offset tax rebate.

A production must be eligible for the 16.5% Location Offset first. If your project is eligible and your project’s Location Incentive application is approved by the Australian Government’s Minister for Communications, Cyber Safety and the Arts, this may effectively take your tax rebate up to 30% of your qualifying Australian spend.

Read the full program description and access the application form here.

Location Incentive guidelines are available here.

Eligibility for the new Location Incentive
To be eligible for funding:

  • Productions must meet the eligibility criteria for the Location Offset
  • Utilise the services of one or more Australian post, sound, music or visual effects providers
  • Secure support from relevant state or territory governments
  • Meet or exceed the expenditure threshold:
    • of AU$15 million of qualifying Australian production expenditure (QAPE); and
    • a television series must also have a minimum average QAPE of AU$1 million per hour.

Location Offset and Location Incentive Grant QAPE generally cover the production expenditure for the film or television program in relation to:

  • Goods and services provided in Australia, including cast and crew
  • The use of land in Australia
  • The use of goods in Australia at the time they are used in making the film or program

The Location Incentive was implemented to attract international investment that will sustain Australian jobs and businesses in the film production and related industries.

The Location Offset and Location Incentive are administered by the Office for the Arts through the Department of Infrastructure, Transport, Regional Development and Communications. To find out more click here. 

DISCLAIMER
We recommend you seek independent, professional legal, financial and accounting advice if you are intending to apply for any of the Australian Screen Production Incentives.

Contact:

Ausfilm USA
Erin Stam
EVP, International Production
+ 310 229 2361
[email protected]

Ausfilm Sydney
Nick Herd
Head of Policy & Research
+ 61 2 9383 4556
[email protected]

Or

Australian Government
Office for the Arts
Department of Infrastructure, Transport, Regional Development and Communications
+ 61 2 6271 1543
[email protected]
www.arts.gov.au

 

What's Eligible

Eligible formats include feature films, telemovies, television series (including documentary, reality, animation) for:

– Productions with a minimum total QAPE of A$15 million

– In addition to meeting the minimum total QAPE spend, television series must have an average QAPE of A$1 million per hour of the finished production

Eligibility for the new Location Incentive

– Productions must meet the eligibility criteria for the Location Offset
– Utilise the services of one or more Australian post, sound, music or visual effects providers
– Secure support from relevant state or territory governments
– Meet or exceed the expenditure threshold:
– of AU$15 million of qualifying Australian production expenditure (QAPE); and
– a television series must also have a minimum average QAPE of AU$1 million per hour.

Applicants for the Location Offset must be an Australian resident company or a foreign company with an Australian Business Number (ABN) that is operating with a permanent establishment in Australia. The applicant must be the company that is responsible for all the activities involved in making the film in Australia.

Facts

– There is no cap or sunset clause on the Location Offset. However, the Location Incentive Program is $540 million from 1 July 2019 to 30 June 2027 or until the Government advises that the Program has fully committed and expended available funds.

– The incentives are a cash rebate paid to the producer, less any tax liabilities as part of the company’s tax lodgment for the relevant income year.

– The incentives can be combined with state, territory and local government incentives.

– The Film Certification Advisory Board will assess applications including audited financial statements and if eligible a Final Certificate is issued by the
Minister for Communications, Cyber Safety and the Arts.

– Payment is usually made in 4 weeks from lodgement of a Final Certificate with the Australian Taxation Office (ATO)

– No cultural or content tests

PLEASE NOTE

– A producer may access only one of the Australian Government incentives for each eligible project

– Immigration regulations apply to importing cast and crew. Download Ausfilm’s Visa Factsheet in the documents tab below.

Factsheets