Is the Offset GST inclusive? 

Under the proposed new QAPE rules (that is, those announced as part of the last Federal Budget, which are expected to come into force very shortly – see Producer Offset Reforms 2011), GST is excluded from QAPE.

Under the existing QAPE rules, QAPE is GST inclusive and all GST paid on QAPE and non-QAPE items should be tracked on your general ledger. See At a Glance (PDF) for further information.

Transitional provisions apply to resolve whether a project is subject to the existing rules or the proposed new rules. See Producer Offset Reforms 2011for further information.

How do I prove theatrical distribution? 

If you are claiming the feature film (40%) Producer Offset, you will have to provide evidence that your project is made for bona fide cinema release in Australia. At Final Certification, you must supply clear evidence of Australian theatrical distribution, eg a fully executed theatrical distribution agreement with a recognised Australian distribution company.

At Provisional Certification stage, if you can provide satisfactory evidence demonstrating that the film is to be made for cinema release in Australia, we will not reconsider the question at Final Certification unless the circumstances have changed or we become aware of information which requires that our original assessment as to distribution be revisited. (See Provisional Certificate.)

If I describe it to the Producer Offset and Co-production Unit, can you tell me if my film will meet the Significant Australian Content (SAC) test?

No, we are unable to advise applicants if their project qualifies for the SAC test without receiving a full Provisional or Final Certificate application.

Is there a fee involved for applying for a Provisional or Final Certificate?

Fees are payable for the lodgement of a Provisional Certificate application and for reconsideration of a Provisional Certificate application (following the issue of a Provisional Certificate). See the Fact Sheet for further information. No fee is payable for a Final Certificate application.

Can the Producer Offset Unit and Co-production Unit offer advice on cashflowing the Offset? 

The POCU cannot offer advice as to cashflow providers or arrangements for cashflowing the Offset. However, links to organisations that we understand to offer Offset cashflow facilities may be found at this page: Offset Loans and Cashflow Providers. Please note that in providing these links, we are not making any recommendation or offering any approval or advice in relation to the relevant providers, nor any assurance that your project would in fact be offered financing by them. You will need to make your own enquiries and seek your own advice.

How much will I get back through the Producer Offset?

Subject to any offsetting income tax liabilities, the Producer Offset is worth:

• 40% of QAPE for feature films – which, in our experience, tends to equate to approximately 35-38% of the total budget, assuming all expenditure is incurred in Australia.
  
  
• 20% of QAPE for all non-feature films – which, in our experience, tends to equate to approximately 16-18% of the total budget, assuming all expenditure is incurred in Australia.

Do I need to apply for a Provisional Certificate? 

A Provisional Certificate is completely optional and is not a requirement for eventually accessing the Offset. However, cashflow providers and investors (including Screen Australia and state and territory bodies) may require you to hold a Provisional Certificate. Please speak to your investors about their requirements.

How long does it take to issue a Provisional and Final Certificate? 

From the time we receive a complete application, application for Provisional Certificates take approximately 6 weeks, and applications for Final Certificates take approximately 10 weeks to process.

When will I receive the Offset?

If Screen Australia issues a Final Certificate to a company, the Offset is claimed through the company's tax return for the financial year in which the film is completed. In some cases, a company may be able to undertake a members’ voluntary winding up after being issued with a Final Certificate, to enable the company to claim the Producer Offset without waiting for the end of the financial year. Whether or not this is an appropriate option for you will depend on the timing and a range of other circumstances, and producers and their advisers are strongly encouraged to seek advice in relation to this. See Timing of Acquittal for further information.

What do I do if I hold a Provisional Certificate, but my budget changes?

After being through the provisional certification process once, you are likely to be in a position to re-calculate your anticipated QAPE. However, you should speak to your financiers and any other relevant parties to establish whether there is a requirement from them that we ‘formally’ re-consider your QAPE calculations. Should it be necessary, you will need to contact us formally requesting that we re-assess your QAPE. Please note that a fee will be payable for such a re-calculation, and the turnaround period for the re-assessment will be equivalent to that applicable to new applications.

Who should I speak to if I have any further queries? 

Call us on +61 2 8113 1042 or email us at POCU@screenaustralia.gov.au