Australian Producers Demand Film Tax Rebate Reform

Over 30 producers are urging the federal government to scrap a cap on above-the-line costs to stop local job losses.

Updated on Oct. 23, 2026 in Economic Policy

Australian Producers Demand Film Tax Rebate Reform

Live Poll

Should the government prioritize local film industry subsidies over maintaining current tax expenditure caps?

More than 30 Australian film and television producers have written to government ministers demanding urgent reform to the producer offset tax rebate. The group argues that the current 20 per cent cap on above-the-line expenditure forces productions to move offshore to remain viable.

Why it matters

Producers claim the restrictive expenditure cap prevents the hiring of competitive international talent and causes significant job losses across the domestic industry. They are seeking to have the reform included in the upcoming Treasury Laws Amendment Bill to better align with international standards.

The producer offset currently provides a 40 per cent rebate for eligible feature films, yet the 20 per cent limit on above-the-line costs has led to an estimated $1.4 million loss for a single project. Producers warn that current policies threaten 1,000 Australian jobs.

The players

GoodThing Productions

This is an Australian film and television production company that estimated one of its upcoming projects would lose $1.4 million due to current rebate caps.

The details

The industry group has petitioned the Arts Minister, the Treasurer, and the Assistant Treasurer to remove the cap, citing the recent success of New Zealand in modernising its own screen production rebates. Without these changes, producers contend they cannot compete for top-tier casts and creative teams.

1 July 2021 marked the end of the period for the previous legacy rebate rate.
The Australian government announced the producer offset tax reform during the 2024 budget.
New Zealand removed its above-the-line salary cap for screen production in 2026.
Producers issued their formal demand for urgent legislative action on 23 October 2026.

Macro View

This push for reform reflects a broader trend of cross-border competition where nations adjust tax policies to capture global production spending. The industry is currently mirroring shifts seen in New Zealand, which recently removed similar caps to bolster its own competitiveness.

For the local industry, this policy shift determines whether creative professionals and technical staff remain employed within Australia or follow productions overseas. It directly impacts the viability of local studios and the size of the domestic production pipeline.

The takeaway

The struggle for rebate reform highlights the delicate balance between maintaining government fiscal policy and remaining globally competitive in the entertainment sector. Industry advocates suggest that removing arbitrary cost caps is the most practical way to secure long-term domestic investment.