George Miller to film in Australia again, yeah pigs might fly
March 20th 2008 12:31
Eligibility for Federal Government tax offsets set by the Film Finance Corporation (FCC) may cause Oscar-winning Australian director George Miller to shoot new $200 million blockbuster overseas rather than in Australia.
The new Miller superhero film is called "Justice League Mortal" and is starring Australian former model Megan Gale. It was set to be shot in Sydney but due to uncertainty over eligibility for the whopping 40% Production Offset tax incentive Warner Bros has suspended filming plans.
George Miller won the Oscar for Best Animated Feature in 2007 for "Happy Feet" (voices of Nicole Kidman, Hugoo Weaver, Magda Szubanski) and was nominated for Oscars in 1996 for Best Writing and Best Screenplay for "Babe" (Magda Szubanski). Miller was also the Writer/Director of the "Mad Max" (Mel Gibson) film series, the Writer/Director of "Lorenzos Oil" starring Susan Sarandon and Nick Nolte, and the Director od "The Witches of Eastwick" starring Cher, Michelle Pfeiffer, Susan Sarandon and Jack Nicholson. His Production credits include classic Australian films "The Year My Voice Broke" (Noah Taylor, Ben Mendolson), "Flirting" (Noah Taylor, Thandie Newton, Nicole Kidman), and "Dead Calm" (Nicole Kidman, Billy Zane).
The uncertainty of this latest film "Justice League Mortal" being eligible for Australian tax rebates is due to its lack of Australian content. The film is an American story based on an American comic strip that will be performed with American accents and was originally titled "Justice League of America".
Respected film heavyweight Miller argues that other films like "Happy Feet", "Babe" and "Moulin Rouge" are have been shot in Australia but are not Australian stories and is appealing to the FCC to allow the tax incentive for blockbuster films in order to promote Australian film industry and build the local talent pool.
Arts Minister Peter Garrett explained on TV program Lateline that the Producers Offset has only been available since September 2007 and its guidelines are subject to interpretation but basically requires significant Australian content to achieve cultural resonance. Garrett points out there is a difference between the Producers Offset (40% tax rebate aimed at Australian content) and the Location Offset (15% tax rebate encouraging films with internation themes to be shot in Australian studios) but is leaving the decision up to the FCC.
To see full transcript of interview with Peter Garrett CLICKHERE
The Australian Film Commission (AFC) website states that in an effort to stimulate production and attract private investment to the Australian film industry the Federal Government has introduced a two incentives under the Australian Screen Production Incentive in July 2007: the Production Offset and the Location Offset
The Production Offset replaced the previous incentives include Divisions 10BA (started in 1981) and 10B (started in 1978) of the Income Tax Assessment Act 1936 (the Tax Act), investors in 10BA-certified projects could claim a tax deduction of 100% in the year the investment was made compared to the new Production Offset which is now 40%. To be eligible for 10B a project had to be certified by DCITA as a ‘qualifying Australian film’.
The Location Offset replaced the Refundable Film Tax Offset (RFTO) (started in 2001), a financial incentive for producers of large-budget films to locate in Australia. The RFTO provided a 12.5% offset for eligible expenditure compared to the new Location Offset which is now 15%. The key requirement of a minimum Australian expenditure of $15 million remains applies to both the Location Offset and the RFTO.
Another scheme which has been abolished as of July 2007 is the Film Licensed Investment Company (FLIC) scheme. The pilot FLIC scheme carried a 100 per cent tax concession over the financial years 1998/99 and 1999/00. Investors received deductions for buying shares in a FLIC, which, in turn, invested in qualifying Australian programs. Unlike 10BA and 10B investments in single projects, shares in a FLIC spread the risk across a slate of productions.
For further reading on the Australian Screen Production Incentive (including the Production Offset, the Location Offset and former incentive schemes) see The Australian Film Commission website www.afc.gov.au
Screen Australia will replace the FCC in July 2008, merging the Australian film agencies, the Australian Film Commission, Film Australia and the Film Finance Corporation (FCC) into one authority responsible for all film incentive and funding decisions.
Anne Marie Nicholson, reporter for "Lateline", Transcript of Australian TV program Lateline
The doubt over "Justice League Mortal" being eligible for funding has now threatened whether the production of Millers "Happy Feet 2" will occur in Australia as originally intended.
Millers film "Justice League Mortal" is being directed by an Australia, starring an Australian, and will potentially be filmed in Australia employing Australian crew, although its subject matter is non-Australian. The decision rests with the FCC and the decision may impact on the potential of Australia to attract wealthy overseas film investors.
The Australian film industry is still considered a "cottage" industry and with recent global economic instability this is make or break time to see whether it will flourish or dwindle into non-existance. Providing incentives and schemes to encourage "blockbuster" production companies to set up projects on Australian soil may be the only way to keep local technical and creative artists in the film industry employed year round. If Australias current schemes and incentives are deterring highly regarded film professionals like George Miller perhaps the newly formed Screen Australia should review the rules and how they are applied.
It is important to continue representing Australian culture on film. It is also important to reap the benefits of the trickle down effect of funding and employment in the arts by attracting big-budget international projects. I hope the FCC or its successor Screen Australia think about what a substantial injection $200 million is in a local industry worth only $600 million.
Wouldnt it be wonderful if all Australias creative talent could have the choice to work in Australia one day?
The new Miller superhero film is called "Justice League Mortal" and is starring Australian former model Megan Gale. It was set to be shot in Sydney but due to uncertainty over eligibility for the whopping 40% Production Offset tax incentive Warner Bros has suspended filming plans.
The uncertainty of this latest film "Justice League Mortal" being eligible for Australian tax rebates is due to its lack of Australian content. The film is an American story based on an American comic strip that will be performed with American accents and was originally titled "Justice League of America".
Respected film heavyweight Miller argues that other films like "Happy Feet", "Babe" and "Moulin Rouge" are have been shot in Australia but are not Australian stories and is appealing to the FCC to allow the tax incentive for blockbuster films in order to promote Australian film industry and build the local talent pool.
Arts Minister Peter Garrett explained on TV program Lateline that the Producers Offset has only been available since September 2007 and its guidelines are subject to interpretation but basically requires significant Australian content to achieve cultural resonance. Garrett points out there is a difference between the Producers Offset (40% tax rebate aimed at Australian content) and the Location Offset (15% tax rebate encouraging films with internation themes to be shot in Australian studios) but is leaving the decision up to the FCC.
To see full transcript of interview with Peter Garrett CLICKHERE
The Australian Film Commission (AFC) website states that in an effort to stimulate production and attract private investment to the Australian film industry the Federal Government has introduced a two incentives under the Australian Screen Production Incentive in July 2007: the Production Offset and the Location Offset
The Production Offset replaced the previous incentives include Divisions 10BA (started in 1981) and 10B (started in 1978) of the Income Tax Assessment Act 1936 (the Tax Act), investors in 10BA-certified projects could claim a tax deduction of 100% in the year the investment was made compared to the new Production Offset which is now 40%. To be eligible for 10B a project had to be certified by DCITA as a ‘qualifying Australian film’.
The Location Offset replaced the Refundable Film Tax Offset (RFTO) (started in 2001), a financial incentive for producers of large-budget films to locate in Australia. The RFTO provided a 12.5% offset for eligible expenditure compared to the new Location Offset which is now 15%. The key requirement of a minimum Australian expenditure of $15 million remains applies to both the Location Offset and the RFTO.
Another scheme which has been abolished as of July 2007 is the Film Licensed Investment Company (FLIC) scheme. The pilot FLIC scheme carried a 100 per cent tax concession over the financial years 1998/99 and 1999/00. Investors received deductions for buying shares in a FLIC, which, in turn, invested in qualifying Australian programs. Unlike 10BA and 10B investments in single projects, shares in a FLIC spread the risk across a slate of productions.
For further reading on the Australian Screen Production Incentive (including the Production Offset, the Location Offset and former incentive schemes) see The Australian Film Commission website www.afc.gov.au
Screen Australia will replace the FCC in July 2008, merging the Australian film agencies, the Australian Film Commission, Film Australia and the Film Finance Corporation (FCC) into one authority responsible for all film incentive and funding decisions.
Last year Australians spent nearly $900 million on movie tickets. But they spent only 4 per cent of that figure on the 25 Australian films released. And half of that was on George Miller's Happy Feet.
Anne Marie Nicholson, reporter for "Lateline", Transcript of Australian TV program Lateline
The doubt over "Justice League Mortal" being eligible for funding has now threatened whether the production of Millers "Happy Feet 2" will occur in Australia as originally intended.
Millers film "Justice League Mortal" is being directed by an Australia, starring an Australian, and will potentially be filmed in Australia employing Australian crew, although its subject matter is non-Australian. The decision rests with the FCC and the decision may impact on the potential of Australia to attract wealthy overseas film investors.
The Australian film industry is still considered a "cottage" industry and with recent global economic instability this is make or break time to see whether it will flourish or dwindle into non-existance. Providing incentives and schemes to encourage "blockbuster" production companies to set up projects on Australian soil may be the only way to keep local technical and creative artists in the film industry employed year round. If Australias current schemes and incentives are deterring highly regarded film professionals like George Miller perhaps the newly formed Screen Australia should review the rules and how they are applied.
It is important to continue representing Australian culture on film. It is also important to reap the benefits of the trickle down effect of funding and employment in the arts by attracting big-budget international projects. I hope the FCC or its successor Screen Australia think about what a substantial injection $200 million is in a local industry worth only $600 million.
Wouldnt it be wonderful if all Australias creative talent could have the choice to work in Australia one day?
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