South Australia has become the first state in the country to offer payroll tax exemption for visiting productions. At the same time, national film body Ausfilm has renewed calls for Australia’s location offset incentive to be increased.
Enabling production companies to apply for payroll tax exemption in places like Adelaide (above) is designed to counteract the effects of the high Australian dollar, which has been a major factor in the country’s declining international appeal as a filming location in recent years. The South Australian Film Corporation (SAFC) is also keen to drive business to the AUD40 million Adelaide Studios.
John Hill is Minister for the Arts in South Australia: “This initiative is unique to South Australia and will allow the SAFC to aggressively market the state as a competitive location for film and television production.”
This initiative is unique to South Australia and will allow the SAFC to aggressively market the state as a competitive location for film and television production.
John Hill, South Australia Minister for the Arts
He adds: “This approach won’t cost the Government any more money, but could save major productions hundreds of thousands of dollars that they would otherwise have to claim back after payment.”
Right now Australia’s national incentives include a 16.5% Location Offset, but Ausfilm wants this to almost double. The feeling is that Australia is being squeezed out of contention for major Hollywood studio projects as rivals like Malaysia launch more competitive filming incentive programmes.
(Images: Adam JWC)
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