Australian Government Urged To Extend Film Tax Break To TV

by Mary Swire, Tax-News.com, Hong Kong

07 May 2003

The extension of a tax rebate already offered to the film industry to television production could be a decisive factor in a prominent Hollywood producer's decision to shoot two twenty-part sci-fi series in Australia, reports revealed this week.

According to the Herald Sun, Silver explained that the 12.5% tax rebate offered to film productions had been a major factor in his decision to shoot the sequels to the Matrix in Sydney's Fox studios. The total budget for the project is estimated at $750 million.

Silver is now exploring the possibility of filming two series of his new science fiction TV series in Australia, and has revealed that the extension of the tax rebate to TV productions would influence his decision to base filming in Australia.

The large decline in the number of television productions in the past year has been blamed on the government's decision not to extend the tax break, but reports have suggested that the authorities felt unable to justify such a revenue-neutral measure given tight fiscal conditions.

However, research by industry lobby group, Ausfilm claims that such a move would generate an extra $295 million spending annually on TV production, and contribute between $139 million and $228 million to the Australian economy.

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