Eligibility

In order to be certified by Screen Australia as eligible for the Producer Offset, a film or program must meet the following criteria:

• It must be completed.
  
  
• Screen Australia must be satisfied that it has 'significant Australian content’ or it must be an official co-production.
  
  
• It must be of an eligible format.
  
  
• Its qualifying Australian production expenditure (QAPE) must meet or exceed the relevant threshold.
  
  
• The applicant company must be an Australian company, or a foreign company with an Australian permanent residency and an Australian Business Number (ABN).

• The applicant company must have either carried out, or made arrangements for carrying out, all the activities necessary for making the film or program.
  

You can apply at any time for a (non-binding) Provisional Certificate, which will provide guidance, based on the information you submitted, on whether your production is likely to qualify for the Producer Offset.

What does ‘significant Australian content’ mean?

A project must have cultural benefits for Australia to attract such a high level of Australian Government support. Therefore, Screen Australia must be satisfied that the project has ‘significant Australian content’ for it to qualify for the Offset. In considering this issue, Screen Australia must have regard to the following:

• the subject matter
• the place where the film or program was made
• the nationalities and places of residence of the people who took part in making it
• the details of production expenditure incurred, and
• any other matters that Screen Australia considers to be relevant.

Download Guidance on Significant Australian Content for more detailed information.

An official co-production automatically meets the 'significant Australian content' test. See Australia’s international co-production program.

What formats are eligible?

The production must be:

• a feature film produced for exhibition to the public in cinemas;
  
• a single-episode program, for example, documentary, telemovie, direct-to-DVD (at least one commercial half hour in length);
• a series or season, for example, documentary series, TV series or miniseries (at least two episodes); or
• a short-form animated drama (of not less than one commercial quarter hour in duration).

The following are not eligible: advertising/commercials, discussion/panel programs, quiz/game shows, variety, sports/public events, training films, news/current affairs, reality TV and computer games.

Screen Australia takes its definition of “documentary” from the ACMA Documentary Guidelines. You can access this document on the ACMA website.

What is the minimum level of expenditure required?

A minimum level of qualifying Australian production expenditure (QAPE) applies for each format:

• For feature films (including documentary features), the QAPE threshold is A$1,000,000.
  
  
• Single-episode program other than a documentary (ie telemovie, direct-to-DVD): the QAPE threshold is A$1,000,000 and the QAPE per hour must be at least A$800,000.
  
  
• Series (or season), other than documentary: the QAPE threshold is A$1,000,000, and the QAPE per hour must be at least A$500,000.
  
  
• All non-feature documentary (single or multi-episode): the QAPE per hour must be at least A$250,000.
  
  
• Short-form animation: the QAPE threshold is A$250,000 and the QAPE per hour must be at least A$1,000,000.

For an official co-production, expenditure in the co-producing country that would be QAPE if it was incurred in Australia is QAPE for the purposes of meeting the expenditure thresholds, but not for the purposes of calculating the offset (rebate) amount received.

The QAPE per hour is calculated by dividing the total QAPE by the duration of the series measured in hours. You must provide the calculation in your application.

What is counted as qualifying Australian production expenditure (QAPE)?

QAPE is the applicant company’s expenditure on the project that is incurred for, or is reasonably attributable to:

• goods and services provided in Australia, for the making of the film;
• the use of land located in Australia, for the making of the film; or
• the use of goods that are located in Australia at the time they are used in the making of the film.

In addition, expenditure incurred outside Australia may be counted as QAPE when it is expenditure on Australian residents during principal photography, but only where the subject matter reasonably requires the use of the location.

Specific inclusions and exclusions apply. For more information, see Qualifying Expenditure, read the Producer Offset Guidelines and the At a Glance document.

The Producer Offset is GST inclusive. This means that GST paid on QAPE items is itself, QAPE. However, Screen Australia strongly recommends that you not take GST into account at provisional stage, because of the likelihood of error. See Final Certification for further information.

What makes you ineligible?

An applicant is not entitled to the Offset if it or any other person in relation to the underlying copyright to the film has:

• claimed a tax deduction under Division 10B; or
  
  
• been issued with a Final Certificate under Division 10BA; or
  
  
• been issued with a Location Offset or PDV Offset certificate; or
  
  
• been issued with a Refundable Film Tax Offset certificate; or
  
  
• received Investment from a FLIC; or
  
  
• received a production drawdown prior to 1 July 2007 from the Screen Australia predecessor agencies FFC, AFC, Film Australia, or from AFTRS.