QAPE Threshold Reduction to $15M Offers Potential Stability for SMEs – Today, Screen Producers Australia (SPA) welcomed the Government’s confirmation that they will revert the minimum expenditure threshold for the Location Offset to $15m of qualifying Australian production expenditure (QAPE) for eligible productions that commenced principal photography or production on or after 1 July 2023.
The measure will assist the Australian screen industry in attracting productions with budgets of $15m and over, increasing economic, employment and skill development opportunities for creatives and small to medium-screen businesses.
“SPA is pleased the Government has committed to re-establishing the minimum QAPE threshold from $20m to $15m for feature films under the Location Offset. During a Senate Enquiry in April, the proposed changes to the Location Offset were raised by SPA as an important issue for the industry,”
– said SPA CEO Matthew Deaner.
“SPA has previously highlighted how keeping this minimum expenditure threshold at $15m permits a broader range of footloose projects to access support for filming in Australia. This in turn, creates the opportunity for a greater diversity of Australian SMEs across the screen ecology to service these projects, stabilising Australian screen businesses of different sizes.
“This is welcomed as it creates balance, providing opportunities for smaller Australian screen businesses to participate in some of the service work being drawn to Australia. This assists in generating a more stable and balanced workflow across a year – particularly important to those businesses that make Australian content, which, given the current absence of a robust regulatory model, have become increasingly precarious enterprises to run.
“While this isn’t a silver bullet for the sector, it is a valued change to policy, and we appreciate that the Government has listened to our representations.
“We urge the Government also to proceed with the commitment to remove the above-the-line expenditure cap in the Producer Offset as soon as possible to bring this much-needed flexibility to Australian productions to finance their works. We look forward to taking more steps in the new year to assist our Australian screen businesses, including addressing long overdue streaming regulation,”
– said Mr Deaner.
Link to Mid-Year Economic and Fiscal Outlook (page 238) HERE
Media Release – SPA
Link to SPA HERE
QAPE Threshold Reduction to $15M Offers Potential Stability for SMEs
