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The Production Budgeting and Film Management Manual (the "Satchel") is a highly valuable budgeting resource. Although it is aimed mostly at feature films, it is also useful as a guide for budgeting short films, animations and documentaries. It is laid out to reflect each category. To purchase this publication, see Budgeting Manual.
The AFTRS regularly offers Production Management and documentary budgeting short courses around the country please check their website for further details.
You should also check with associated industry websites, which may contain useful information - such as production accountancy services laboratories, post-production facilities etc.
The A-Z budgets are updated regularly to correspond with changes in technology and industry standards to accurately reflect production practices in Australia:
There are seven budgets:
These budgets are specifically designed for each of these genres in order to create a useful checklist for both experienced and inexperienced practitioners.
In order to use the budgets, you will need a degree of proficiency in the use of Microsoft Excel spreadsheets. An introductory course in Microsoft Excel should be enough to give you a grounding in the basics. The spreadsheets are suitable for both Macintosh and PC users.
The budget is a guide only. You don't need to fill in every category - use only what you require for your production. However, there are certain requirements that funding bodies need you to budget for (for example, Screen Australia requires crew and cast to be paid award wages for an audit to be completed and for insurances to be budgeted). Read the guidelines on the website for the program you wish to apply for. Contact the funding agency you are applying to and find out exactly what they require you to cover in the budget.
Many of the budget categories have detailed worksheets; see the coloured tags at the bottom of your screen. Use these detailed worksheets to help work out the amounts you will need.
You can add lines, delete lines or delete whole sections from the budget. But only do this if you are proficient enough with Microsoft Excel to know how to change the formulas. If you delete lines or sections, it may affect existing formulas in other cells, and they will need to be amended accordingly. If you add lines, make sure the extra line(s) add into the existing formulas and ensure the summary page has the additional lines and adjusted formulas.
An easy way to avoid making formula errors is to change the name of an existing line item, either to make it better describe what you're budgeting for or to re-use the line for another cost altogether. This way you're not adding or deleting lines and won't risk affecting existing formulas.
The Production Budgeting and Film Management Manual (the "Satchel") details the steps required to get started on a budget. See Budgeting Manual.
Any budget evolves from the script or a treatment (for documentary) and should reflect the contents including cast/characters, locations, travel, props, animals, vehicles etc.
First, do a shooting schedule and an overall production schedule. The shooting schedule allows you to work out the number of days shoot you require and, for drama, what days the actors are needed for plus essential props, vehicles, animals etc. The overall schedule allows you to work out the number of weeks pre-production, edit, sound etc.
Then you need to decide the size of your crew - who do you need to do what? Who can you afford and what jobs can be safely doubled up?
For drama, decide the length of your script. Either have a continuity/script supervisor do a timing, or make a realistic estimate yourself, including credits and titles.
The Producer Offset ("Offset") is one part of three tax incentives forming part of the Australian Screen Production Incentive (ASPI). Full details, documents and application forms are available on the Producer Offset page. Also available under ASPI are the Location Offset and the PDV (Post, Digital, Visual effects production) Offset, which are administered separately by the Department of the Environment, Water, Heritage and the Arts.
The Offset is a tax-based incentive and is principally relative to goods and services provided in Australia. It is available to feature films at 40% of qualifying expenditure and for all other formats at 20% of qualifying expenditure, as set out in the legislation and guidelines.
The two key elements of the Producer Offset are the ability of the applicant to show that the project has Significant Australian Content (SAC) and passes the threshold and, if applicable, eligibility tests.
Qualifying Australian Production Expenditure (QAPE) is one of the components of the Producer Offset required to pass the eligibility test and apply for the Producer Offset.
QAPE = Total film expenditure minus exclusions, minus non-QAPE, minus Above-the-Line (ATL) excess, minus prior spend (1 July 2007).
QAPE is defined as "the company's production expenditure on the film that is incurred for, or is reasonably attributable to:
A film's production expenditure (PE) is defined as the expenditure incurred in, or that is reasonably attributable to, making the film (i.e. your full production budget). This includes pre-production activities, shooting of the film, post-production activities and any other activities undertaken to bring the film up to the state where it is ready to be distributed, broadcast or exhibited to the general public. This budget could include costs of financing and marketing of the film. For more detailed information and full guidelines visit Producer Offset.
Get quotes from services and facilities to ask them what things cost, and get a specific quote/s. In the first instance you might just want a ballpark figure to see what you can afford, then you might go back later for a proper quote when you've got more idea about what you want. Some of the areas you might want to get quotes for include camera equipment hire, film laboratory services (for shooting and finishing on film), video facility services (for post-production via video), specific locations, airfares and accommodation, insurance, art department major props or on-screen vehicles, animals, etc.
See Production Resources.
Fringes are the expenses associated with employment. Fringes include holiday pay, superannuation, workers compensation and payroll tax.
The Information page of the budget gives information on how Fringes are calculated - open the "Info" tab, scroll down and read the page.
For a medium budget film assume that at least 80 per cent of your crew and cast are employees. For a low-budget film assume 100% are employees. By law the nature of the relationship that you have with them is that of an employer rather than a contractor. Even if a crew member has an ABN you will need to pay fringes. If a crew member is contracted through a Pty Ltd company, fringes are usually not payable but they will often want to negotiate a higher fee that compensates them for holiday pay and superannuation. So at the budgeting stage you could even assume fringes on all crew and cast.
Generally a short film or a documentary won't have a payroll tax liability. Payroll tax is calculated on the amount of wages you pay per month. There is a threshold amount of total wages that is payroll tax-free. Usually this amount is too large for a short film or doco's wages to reach. But in the instance of a film with a big wages component, or if the production company has an existing wage liability, then it may apply. The rates and thresholds vary amongst the states (as it is a state tax). See Budgeting Manual for further details or contact the state office of revenues in your state to find out the rates.
No matter how small the budget every filmmaker is advised to register the entity through which they produce their film for GST. In all likelihood they would be legally required to register. Once registered you may claim back all the GST that has been included in payments made. This being the case, always budget the production expenses net of (ie without) GST. Invariably the funding that you achieve for your film is considered a taxable supply and you are required to invoice the funding body, network, distributor etc for your cashflow plus GST. This is not a reason to put a line in the budget for GST. GST will be dealt with contractually and by invoice. DO NOT INCLUDE GST AS A COST WITHIN YOUR BUDGET.
See Tax & Financials.
You are obliged by law to provide certain insurances such as workers compensation for your employees and in some cases contractors, and Public Liability Insurance throughout the period of your production. Your Insurance Agent can provide you with further information about these requirements.
Many other insurances such as Negative Risk, Multi-Risk for equipment, props and sets, travel insurance, Film Producer's Indemnity and Errors and Omissions may be required by your investors, broadcasters or funding bodies. You will need to talk to an insurance agent about your film and they will assist you in preparing a quote based on your production budget. A listing of Australia Film Insurance Agents can be found in all the industry directories.
For a list of industry contact directories see Production Resources (or Encore/Production Book etc)
The contingency is a sum of money set aside for unpredictable expenses that inevitably occur on every production. The contingency is calculated as a percentage of the below the line costs. Different funding agencies and broadcasters have different requirements but the norm is 10 per cent.
