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Offset is not enough: Screen Australia

Screen Australia made public its submission to the 2010 industry review last night at a seminar in Sydney.

“The Producer Offset cannot work alone […] For the Offset to reach its potential, Screen Australia requires more direct funding to allow increased support for medium-budget films and authored documentaries,” said CEO Ruth Harley.

Harley said that, for features, TV drama and documentary, the combination of Offset/Screen Australia investment is “generally working well”.

In terms of the games sector, Harley said a “modified Producer Offset” is needed to grow sustainable businesses, as the digital environment remains “the greatest unknown”.

The presentation identified key issues such as:

  • Medium-budget films

The Offset is not generating enough revenue to fund medium-budget films without Screen Australia assistance. The agency requires additional funding so it can lift its cap from $2.5m to invest in this type of films.

  • Low-budget, one-off documentaries

The Offset is problematic for low-budget, one-off documentary productions, which may not have sufficient marketplace support to be made without additional funding from Screen Australia. The agency suggests the Offset be substituted by a grant for these projects, with a budget of $500,000 or less.

  • Innovative screen projects

Projects with low budgets or alternative distribution models are missing out on the support provided to more expensive/traditional projects.

Screen Australia suggests lowering the $1m Qualifying Australian Production Expenditure (QAPE) threshold for feature films to $500,000, as well as the single-episode program (non-theatrical drama) QAPE threshold.  These measures should be combined with increased direct funding support for Australian content on emerging media platforms.

  • Games sector

The agency recommends the creation of a hybrid Location/Producer Offset governed by a modified Significant Australian Content (SAC) test, which focuses on the manufacturing criteria as opposed to the subject matter of the content.

Screen Australia will present a similar session in Melbourne on August 6.

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