The Producer Offset is a refundable tax offset for money spent in Australia (or by Australian companies) making an Australian film. Because it’s refundable, you can receive a tax refund even where no tax has been paid. It’s worth 40% of your company’s total Qualifying Australian Production Expenditure (QAPE) if distribution is commercial release in the cinema, or 30% if distribution is via other formats such as television or subscription video-on-demand (SVOD).
You can use the Producer Offset upfront to help finance your production, rather than waiting until the end, by borrowing against the Producer Offset.
Related guide: Common production funding options and the traps to look out for
Below we explain how QAPE is calculated, what counts toward it, and where to go for more detailed guidance.
In effect, QAPE is the money spent in Australia on the production. Screen Australia provide an A-Z budget, which is a good starter list if you want to understand the types of things that can be included in your QAPE. Overall, it includes:
- goods and services provided in Australia
- the use of locations in Australia, and
- the use of goods that are located in Australia at the time they are used in the making of the project
There is a threshold, or minimum QAPE required to be eligible for the Producer Offset, which changes depending on the format of your production. You can find the list on the Screen Australia website.
Where do I get more info?
The Producer Offset is administered by Screen Australia. They provide one of the most comprehensive resources on the offset. You can also find out more on the Australian Tax Office website.
We’ve also developed a full run-down of how you can apply for the Producer Offset. If you are considering accessing the Producer Offset, then it is best to get your records in order early. So we have also created a series on how to manage the money side of your production at each stage of the process.
Of course, if you are considering claiming the Producer Offset for a current or upcoming production, please get in touch. We can support and advise you no matter what stage of production you are in.
If you would like a hand to apply for the Producer Offset, this is one of our specialties. Feel free to contact us for a free consult.
A note on this article
Information provided by Above the Line Accounting on this website is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice.