A guide published by Dotto
Film producer: the offsets, classification and on-set rules behind a production
A production’s year in law runs from the money to the people. Three refundable tax offsets help pay for the film, a classification decides how it may be shown, and state and Commonwealth rules govern two groups of people on set: children, and cast and crew from overseas. This is a guide to those rules in plain words, published by Dotto from the official sources listed at the foot of each page.
General information only, not tax, legal or migration advice. Each guide names the official place to check.
The call sheet: five guides
- The producer offset
40% for a cinema feature, 30% for other qualifying films, certified by Screen Australia; the nine spending floors and what counts as Australian expenditure.
Income Tax Assessment Act 1997, ss 376-55 to 376-75
- The location and PDV offsets
30% each, certified by the Arts Minister, with the $20 million and $500,000 floors and the training spend.
Income Tax Assessment Act 1997, ss 376-10 to 376-50
- Getting a film classified
The application, the sixteen kinds of exempt film, festival screenings, and NSW’s penalties for showing an unclassified film.
Classification Act 1995, ss 6B to 6D and 14
- Children on set
The employer’s authority in NSW, the licence in Victoria, and the hours rules in each.
Children’s Guardian Act 2019 (NSW); Child Employment Act 2003 (Vic)
- Cast and crew from overseas
The 408 visa’s seven entertainment situations, the Arts Minister’s certificate and union consultation.
Migration Regulations 1994, Sch 2, cl 408.229A
Three offsets, one per film
“A company is only entitled to one of these offsets in relation to a film.” Each needs a certificate that states the Australian expenditure the offset is worked out on, and each is claimed in the company’s income tax return.
| Offset | Rate | Certified by | Spending floor |
|---|---|---|---|
| Producer | 40% for a feature film produced for commercial exhibition in cinemas; otherwise 30% | Screen Australia | From $250,000 to $35 million by type of film; $500,000 for a feature |
| Location | 30% | The Arts Minister | $20 million, for films commencing on or after 1 July 2023 |
| PDV | 30% of the post, digital and visual effects spend | The Arts Minister | $500,000 of PDV spend |
The rates are measured against qualifying Australian production expenditure, and each took effect for work starting on a set date, listed below.
Dates the rules run to
| From | What applies |
|---|---|
| 1 July 2011 | PDV offset at 30%, for PDV production commencing on or after this date |
| 1 July 2021 | Producer offset at 30% for films other than cinema features, for films commencing principal photography on or after this date |
| 1 July 2023 | Location offset at 30%, for films whose principal photography (or making, for an animation) commenced on or after this date; and Victoria’s child employment permits replaced by licences |
| 1 July 2024 | The location offset’s training condition, and the producer offset’s $35 million floor for a drama season (item 7A), for films commencing on or after this date |
| 1 July 2025 | The minimum training spend rises to the lesser of $500,000 and 1% of total QAPE, for films commencing on or after this date |
The people on set
In NSW, a child for these rules is a person under 16, and employing one to take part in a recorded performance needs an employer’s authority unless an exemption applies; the maximum penalty is 100 penalty units. Victoria counts a child as a person under 15. For a performer flown in for a film or television production, the 408 visa’s entertainment clause asks for the Arts Minister’s certificate and for consultation with the relevant Australian unions. Before a finished film is shown, the classification guide sets out when an application is needed and when a festival screening can be exempt.