Australian Producers Warn Films Will Flee Over Stalled Offset Cap Fix
Summary
One producer says his $30 million feature will move to New Zealand unless the 20% above-the-line cap is lifted within weeks.
"IF Magazine reported Monday that a group of Australian producers is pressing the federal government to legislate the removal of the 20% cap on above-the-line costs under the Producer Offset, a change first announced in the May 2024 Budget to take effect from July 1, 2024. In a September 7 letter to Arts Minister Tony Burke, Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino, Causeway Films, GoodThing Productions, Made Up Stories, Ludo Studio, Werner Film Productions, Goalpost Pictures and Roadshow Films argued that the delay is choking financing for bigger-budget local films, where development and fees for directors, producers and principal cast often exceed the cap.
The producers say lenders will not treat an unlegislated, retrospective entitlement as a bankable rebate. Producer Tom Blackwell told IF that unless the cap is removed ""within weeks,"" his $30 million film will relocate to New Zealand, which has already dropped its own cap. GoodThing estimates its next project will miss about $1.4 million in qualifying expenditure, roughly $550,000 in rebate, and Causeway said it stands to ""lose millions"" across its next two films. Screen International also reported the renewed push.
A government spokesperson told IF the measure remains on the legislative program, with timing subject to the broader agenda, and that the change will apply retrospectively from July 1, 2024."
