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The Producer Offset is a refundable tax offset (rebate) for producers of Australian feature films, television and other projects. Because it's underpinned by income tax legislation, it represents a source of funds for producers of eligible Australian projects.

changes to the Producer Offset LEGISLATION

On 14 May 2024 as part of the Federal Budget, the Government announced changes to the Producer Offset.  

Removing the ‘above the line’ cap

  • The Australian Government will remove the 20% above the line cap from the Producer Offset. This will remove the restrictions placed on Australian producers when using major creative talent. It also aligns the Producer Offset with the Location Offset now that the Location Offset rebate rate will be increased to 30 per cent. 
  • This will support local screen producers, including children’s content producers, by modernising the Producer Offset and allowing local producers better access to top-tier Australian talent.

Removing minimum length requirements 

  • The Australian Government will also remove minimum length requirements for most formats under the Producer Offset. 
  • Many of the current minimum lengths are based on a terrestrial free-to-air broadcast system that are no longer relevant for online streaming platforms. For example, minimum lengths include one commercial hour for a single episode of non-feature programs other than documentaries or animations, and a commercial ¼ hour for short-form animation. 
  • Note: the minimum length requirements for feature film and large format feature film will remain unchanged. These are still considered appropriate and reflective of the contemporary cinema distribution environment.  

These changes will apply to projects that commence principal photography on or after 1 July 2024 and are subject to the passage of legislation.

Previous changes to the Producer Offset LEGISLATION

On 13 December 2023 as part of the Mid-Year Economic and Fiscal Outlook (MYEFO), the Federal Government announced changes to the Producer Offset, subject to the passage of legislation. 

  • The introduction of a new, per season, minimum qualifying Australian production expenditure (QAPE) threshold to the Producer Offset for drama series.
  • The new per season threshold will mean that drama series that spend at least $35 million per season in QAPE will be eligible for the Producer Offset and not subject to the per hour minimum QAPE requirement of $500,000. 
  • The existing eligibility requirement of a minimum QAPE of $500,000 per hour and $1 million total will remain for drama series with a QAPE of under $35 million per season.
  • Drama series productions will now have the option of meeting either the $500,000 per hour and $1 million total QAPE thresholds, or the $35 million per season QAPE threshold to access the Producer Offset.
  • This change will benefit drama series comprising significant hours of content over a season but do not meet the $500,000 per hour QAPE threshold. The new per season threshold will apply to drama series that commence principal photography or production of animated image on or after 1 July 2024.

On 1 December 2021, federal parliament approved changes to the legislation governing the Producer Offset (Division 376 of the Income Tax Assessment Act 1997), which you can read here. The changes are in force from 1 January 2022 and apply to productions that have commenced or will commence principal photography on or after 1 July 2021. The Producer Offset Guidelines were updated to reflect both the legislative changes and a general reform - they are available  here.

ASSESSMENT TIMEFRAMES

Unfortunately the majority of applications currently being submitted to POCU are incomplete or contain errors. This slows down the processing of all applications. As well, POCU is receiving and working through a high volume of applications. 

Here is the current guide to assessment timeframes for complete applications only:

  • Logging: your application must first be logged, then the assessment process starts. Complete applications are estimated to be logged within 3-5 weeks of being submitted. This timeframe will be longer if your application is missing supporting documents or contains errors;

  • Provisional Certificates: assessments are expected to be finalised between 8-10 weeks from receipt of a complete application. This timeframe will be longer if your application is missing supporting documents or contains errors;

  • Final Certificates: assessments are expected to be finalised within approximately 12-16 weeks from receipt of a complete application. This timeframe will be longer if your application:

  • is incomplete and/or contains errors;
  • includes high levels of interested party expenditure;
  • makes claims for expenditure which are not supported by proper documentation; and/or
  • is large or complex.