The Producer Offset is a refundable tax offset (a rebate) calculated on a project’s qualifying Australian production expenditure.

The Producer Offset is a refundable tax offset (a rebate) calculated on a project’s qualifying Australian production expenditure (QAPE), for:

• 40% of an applicant’s QAPE for a feature film that was produced for commercial exhibition to the public in cinemas; or
• 30% of an applicant’s QAPE for an otherwise eligible project such as a program produced for television or a subscription service.

The Producer Offset is one of three refundable tax offsets for qualifying projects under the ITAA.

The other two are:

1. the location offset: a 16.5% offset on QAPE for projects filmed in Australia with Australian expenditure of over $15 million (that do not satisfy the significant Australian content test for the Producer Offset); and
2. the post, digital and visual effects (PDV) offset: a 30% offset on QAPE that relates to post, digital and visual effects for a project.

Information can be found for these on the Funding Centre: location offset and PDV offset. 

Eligibility

To be eligible for the Producer Offset, an applicant must be either: an Australian resident company, being: 

• a company incorporated in Australia; or 
• if not incorporated in Australia, a company having its central management and control (CMC) in Australia, or its voting power controlled by shareholders who are residents of Australia. (Taxation Rule TR 2018/5 and PCG 2018/9 provides guidance for when a foreign incorporated company is an Australian tax resident); or
• a foreign resident company with an ABN operating through a permanent establishment in Australia. (Taxation ruling TR 2002/5, as amended by TR 2002/5A, 5A2 and 5A3, provides guidance about whether a foreign resident company has a place at or through which it carries on business for the purposes of the definition of ‘permanent establishment’). 
• Individuals, partnerships, sole traders and a company which is acting in the capacity of a trustee of a trust are ineligible for the Producer Offset.

• Phone: +61 2 81131042
• Email: POCU@screenaustralia.gov.au