guidelines
How does it work? An overview

The fundamental idea behind an official co-production is that two (or more) producers from two (or more) countries co-produce a film. Each co-producer raises a certain proportion of the budget of the film and provides a reasonably equivalent proportion of the ‘creative contribution’ to the film.

• Subject to some specific exceptions, all personnel involved in making the film must be from the co-producing countries and the film must be made in the co-producing countries.
  
  
• Generally, one party is the ‘majority’ co-producer, with that co-producer raising the majority of the budget and the majority of the creative contribution to the film being provided by nationals or permanent residents of that producer’s country.
  
  
• All co-production arrangements require that each co-producer has a level of creative contribution to the film reasonably equivalent proportionally to the finance raised by that co-producer.
  
  
• Screen Australia assesses the Australian ‘creative contribution’ by reference to the Australian Qualifying Points (AQP) of the film, using a ‘points test’.
  
  
• In addition, it is a requirement of these guidelines that the percentage of the budget raised by the Australian co-producer must be reasonably equivalent to the proportion of the budget spent on Australian elements.
  
  
• Each competent authority assesses the requirements of the relevant co-production arrangement in accordance with its own guidelines and it is the responsibility of each co-producer to liaise with the competent authority in its country to ensure that the film meets its requirements.

For more information on the above points, see Eligibility.

All co-production arrangements also require an overall balance of the creative, technical and financial elements across all co-productions over a number of years. A project otherwise eligible under the relevant co-production arrangement and these guidelines may not receive provisional approval as an official co-production if it would result in an unacceptable imbalance within a series of official co-productions under the arrangement. This is referred to as the ‘balance over time’ principle.

In order to qualify as an official co-production under any co-production arrangement, a co-producer must apply for provisional approval when finance is committed, but before production commences. At provisional application stage, the Australian co-producer will need to satisfy Screen Australia that:

• there is a producer from each country (the co-producers);
  
• a co-producers’ agreement is in place between the co-producers that outlines the responsibilities and rights of each co-producer and fulfils all the requirements of the relevant co-production arrangement;
  
• the financial contribution of each co-producer is secure and committed, including where relevant, the minimum contribution of a third-party co-producer;
  
• the Australian producer’s financial contribution is reasonably similar proportionally to the Australian creative contribution; and
  
• the Australian producer’s financial contribution is reasonably similar proportionally to the spend on Australian elements.
  

To assist in raising finance, an optional, non-binding letter of preliminary compliance may be sought before applying for provisional approval.

Once the film is finished, an application for final approval must be made in order to secure official co-production status. At this point, in addition to providing all of the executed financing agreements, the Australian co-producer must provide a DVD copy of the finished film, the final budget, full cast and crew list and other documents as required by Screen Australia.

It is important to note that Screen Australia will not be in a position to give final approval until the relevant overseas competent authority has confirmed its approval.