Australia’s Production Offsets Boost Local Economy By $11.4BN, Says Olsberg SPI Report

Australia’s film and television incentives contributed a total of $11.4BN (A$16.5BN) to the country’s economic output for the four years to the 20201/22 financial year, according to a study by UK-based consultancy Olsberg SPI. 

The report also found that Australia’s offset programs underpin its standing as a major production hub. In 20201/22, total production expenditure in Australia grew to more than $1.5BN (A$2.2BN), an increase of 91% over the four years studied. 

Major productions to shoot in Australia over the past four years include Disney’s Thor: Love And Thunder, Universal’s Ticket To Paradise, Woody Woodpecker and Metropolis, Legendary Entertainment’s Godzilla vs Kong 2 and Netflix shows Heartbreak High, Pieces Of Her and God’s Favorite Idiot. 

Drilling down into the various incentives, the report found that Australia’s 16.5% Location Offset, geared towards offshore film and TV productions, resulted in a $4 (A$5.89) return for every A$1 invested through the program. 

Australia also offers a 30% Post, Digital & Visual Effects (PDV) Offset, also geared towards inbound production, and the 30-40% Production Offset, geared more towards local productions as it’s subject to an Australian cultural test. 

In addition, the Location Incentive Program offers a merit-assessed grant of up to 13.5% of qualifying production expenditure, which was topped up with an additional $277M (A$400m) in 2020. 

The Olsberg SPI report, entitled ‘Study on the Impact of Film and Television Production Incentives in Australia’, was launched today by the Australia New Zealand Screen Association (ANZSA) and the Motion Picture Association (MPA) at an event at Parliament House in Canberra. 

Speaking at the event, producer Jon Kuyper, who has worked on productions including Mad Max: Fury Road, Thirteen Lives and Woody Woodpecker in Australia, said: “Australia’s combination of attractive incentives, world class crews and facilities, and magical locations mark it as a global best-in-class for inbound production. However it’s vital that we see some certainty around the location offset if the country is to achieve its full potential as one of the world’s leading production hubs.” 

Ausfilm CEO Kate Marks said: “International productions play a crucial role alongside Australia’s domestic productions in growing Australia’s entire screen ecosystem. A permanent 30% Location Offset would ensure a consistent pipeline of both physical production and PDV activity and cement Australia’s position as a leader in the global screen industry.” 

Schuyler Weiss Managing Director at Baz Luhrmann’s Bazmark Films, which filmed Elvis in Australia, said: “The Producer Offset allows Australia’s storytellers to turn an idea into reality, and this report shows that even purely on economic grounds that’s a good deal for Australia, with $4.40 in economic value generated for every $1 spent on the Producer Offset reaching far beyond the screen sector alone.” 

Australia is set to add three new studio facilities across Western Australia, New South Wales and Queensland in the near future. A statement by ANZSA said: “The production pipeline is growing at a record rate, feeding a surge in demand for a further top-up, extension or reform of the Location Incentive to simplify the reliefs in line with competitor countries, such as the UK, and continue to boost growth in the sector.”