Australia’s manufacturing offsets boost local economy by $11.4BN, says Wollsberg SPI report

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

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

Major productions to shoot in Australia over the past four years include Disney Thor: Love and ThunderUniversal’s ticket to heaven, Woody woodpeckers And metropolisof Legendary Entertainment Godzilla vs. Kong 2 and Netflix shows Heartbreak High, his piece And God’s beloved idiot.

Drilling down into the various incentives, the report found that 16.5% of Australian location offsets, made for offshore film and TV production, received a $4 (A$5.89) return for every A$1 invested through the program.

Australia also offers a 30% post, digital and visual effects (PDV) offset, also geared towards inbound production, and a 30-40% production offset, geared more towards local productions as it is subject to an Australian cultural test.

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

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

Speaking at the event was producer John Kuyper, who served as co-producer Mad Max Fury Road, thirteen lives And Woody woodpeckers In Australia, said: “Australia’s combination of attractive incentives, world-class crew and facilities and magical location has positioned it as a global best-in-class for inbound manufacturing. But it is vital that we see some certainty around the position if the country is to achieve its full potential as one of the world’s leading manufacturing hubs.”

Ausfilm CEO Kate Marks said: “International productions alongside Australian domestic productions play an important role in growing Australia’s entire screen ecosystem. A permanent 30% position offset will 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 of Baz Luhrmann’s Bazmark Films, which filmed Elvis In Australia, said: “Producer offsets allow Australian storytellers to turn an idea into reality, and this report shows that even on a purely economic basis that’s a good deal for Australia, with $4.40 of economic value created for every $1 spent on producer offsets. 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 from ANZSA said: “Production pipelines are growing at record rates, increasing demand for further top-ups, extensions or reforms of location incentives to ease relief in line with competing countries such as the UK. , and will continue to drive growth in the sector.”