Tax rebates for film and television producers

We manage two tax rebates that support the Australian screen industry, the:

1. Location Offset - a 16.5 per cent rebate for the production of large-budget film and television projects shot in Australia. In the 2023-24 Budget, the Australian Government announced the Location Offset will increase to 30 per cent from 1 July 2023. 
2. Post, Digital and Visual Effects (PDV) Offset - a 30 per cent rebate for work on post, digital and visual effects production in Australia, regardless of where a project is filmed.

Guidelines and glossaries

Revised guidelines for the Location Offset and PDV Offset were released in January 2022 and are available below. The Location Offset and PDV Offset glossaries were also released, and are comprehensive A–Z of screen industry terminology which provide advice on the treatment of specific items as qualifying Australian production expenditure (QAPE) under each offset.

Read the relevant guidelines and glossary before you start production and before you fill out an application form for provisional or final certification. You can also speak to a member of the Location and PDV Offset team to discuss any questions or issues.

Please note that the updated guidelines and glossary for the Location Offset reflecting the increased Offset rate from 16.5 per cent to 30 per cent will be released once the legislation is in place. For further information, please visit our Frequently Asked Questions on the Location Offset.

‘Dos’ and ‘Don’ts’ for Post, Digital and Visual Effects Offset and Location Offset applicants (DOCX: 29KB)

The Location Offset

The Location Offset is a 16.5 per cent rebate designed to encourage large-budget film and television projects to film in Australia. The Location Offset rebate rate will increase from 16.5 per cent to 30 per cent from 1 July 2023. New eligibility requirements will also be introduced. For further information, please visit our Frequently Asked Questions on the Location Offset.

The Location Offset aims to provide increased opportunities for Australian cast, crew and other screen production service providers to participate in these productions.

You can apply for the Location Offset once you are no longer incurring QAPE.

Guidelines and glossary:

• Location Offset guidelines
• Location Offset glossary

Application form

You can apply for final Location Offset certification online.

Your application will be assessed by the Film Certification Advisory Board. If eligible the Minister for the Arts will issue a certificate for the Location Offset, which includes a determination of QAPE. You need this certificate to claim the offset. The certificate should be included with your relevant year Australian tax return, and the offset amount will be paid out less any existing tax liabilities.

The PDV Offset

The PDV Offset is a 30 per cent rebate that supports work on post-production, digital and visual effects production in Australia, regardless of where a project is shot. It aims to help the Australian visual effects, post-production and animation sector develop its reputation as one of the best in the world.

You can apply for the PDV Offset once you are no longer incurring QAPE related to PDV activities.

Guidelines and glossary:

• PDV Offset guidelines
• PDV Offset glossary

Application form

You can apply for final PDV Offset certification online.

Your application will be assessed by the Film Certification Advisory Board. If eligible the Minister for the Arts will issue a certificate for the PDV Offset. You need this certificate to claim the offset. The certificate should be included with your relevant year Australian tax return, and the offset amount will be paid out less any existing tax liabilities.

Provisional certificates

You can apply for a provisional certificate any time to find out whether your production is likely to qualify for either offset.

A provisional certificate does not provide a guarantee of receiving a final certificate; but it does indicate whether you may be eligible for a final certificate. The assessment of provisional applications also provides an indication of whether the projected expenditure is eligible under the relevant offset. Eligibly will be assessed against the legislation in force at the time of application.

You can apply for provisional Location Offset certification or PDV Offset provisional certification online.

• Location Offset provisional certification
• PDV Offset provisional certification 

Changes to the Location and PDV Offsets

Changes have been made to the laws for Location and PDV Offsets since they were introduced in 2007.

For the Location Offset, productions starting principal photography or production of the animated image in Australia on or after:

• 10 May 2011, the offset rate was increased from 15 to 16.5 per cent, and additional expenditure on audit, legal, insurance and company fees were made eligible as qualifying Australian production expenditure.
• 1 July 2010, the requirement to spend at least 70 per cent of the total production budget in Australia for productions spending between $15 million and $50 million in Australia was removed.

For the PDV Offset, productions starting PDV work in Australia on or after:

• 1 July 2011, the PDV Offset rate was increased from 15 to 30 per cent, and additional expenditure on audit, legal, insurance and company fees were made eligible as qualifying Australian production expenditure.
• 1 July 2010 the minimum qualifying expenditure threshold for eligibility was reduced from $5 million to $500,000.

Film tax incentives 10BA and 10B were replaced in 2007 by the Producer Offset. The concessional status for investment in productions holding a valid 10B or 10BA certificate ended on 30 June 2009.

In the 2023-24 Budget, the Australian Government announced the Location Offset will increase to 30 per cent from 1 July 2023. New eligibility requirements will also be introduced. Please note these changes are yet to come into effect as they are subject to the passage of legislation: 

• The Location Offset rebate rate will increase from 16.5 per cent to 30 per cent for eligible productions that commence principal photography or production of the animated image on or after 1 July 2023.
  • The minimum qualifying Australian production thresholds will also increase from 1 July 2023 to $20 million and $1.5 million per hour for television series. 
  • New eligibility requirements will also be introduced. These are:
    • A requirement that a production must meet minimum training obligations or contribute to the broader workforce and infrastructure capacity of the sector.
    • A requirement that a production must use one or more Australian providers to deliver post, digital and visual effects for the production.
  • New reporting requirements are proposed as part of the Location Offset application process to capture data including employment of Australian crew and use of Australian businesses.
  • For further information, please visit our Frequently Asked Questions on the Location Offset.
     

Contact

Phone: 02 6271 1543
Email: filmenquiries@arts.gov.au

For taxation issues, contact the Australian Taxation Office.
Phone: 132 866

From outside Australia: +61 2 6216 111