×
You will be redirected back to your article in seconds

Oz incentive clause

Davey urges gov't to clarify tax break rules

SYDNEY — A-list producer Bruce Davey has intensified the pressure on the Australian government to clarify tax rules for offshore production after Oz investors in “Moulin Rouge” were denied a tax break.

Oz-born Davey suggested adopting the Canadian model of tax incentives: “The government would be foolish not to do something similar, especially as the Australian dollar is low,” he said. “Filmmakers are always chasing the bottom line.”

The L.A.-based producer, who is Mel Gibson’s partner in Icon Prods., told Daily Variety on Monday that if offshore-originated production continued to flourish Down Under, “local production will thrive: They go hand-in-hand.”

Davey joins a growing throng of interested groups, including the New South Wales government, Fox Studios Australia and facilities houses, who have called on the federal government to ensure the division 10B tax laws on offshore production are applied consistently and fairly.

The recent Australian Tax Office ruling denying a tax deduction for “Moulin Rouge,” following a similar decision against local investors in “Red Planet,” has raised fears that international productions will bypass Australia.

The government is reviewing the operation of the 10B provision — which gives a 100% tax writeoff over two years but enables investors to leverage their investment four- or fivefold — and has promised an outcome “within weeks.”

Davey’s plans

Davey would consider using 10B funding if Icon’s pilot “Invincible,” which was shot in Oz and airs on TBS in November, is spun off into a series.

“Creatively, I would like to see the series happen here, (but) others have suggested it should be done in Canada,” Davey said in Sydney before flying to Queensland for this week’s Australian Intl. Movie Convention. There he is due Wednesday to confirm that the Gibson/Madeleine Stowe/Sam Elliott starrer “We Were Soldiers” will be the maiden release from Icon’s fledgling Oz distrib banner.

Davey intends to show exhibs about four minutes of footage from the Randall Wallace-directed Vietnam war epic and to announce two other Icon Film Distribution releases including “Company Man,” a spy thriller toplining Lucy Liu and Jeremy Northam.

Icon Film Distribution CEO Mark Gooder said he will wait until he’s acquired more titles before negotiating Oz homevideo and pay TV deals.

While Gooder indicated eight to 12 films per year would be an optimum number to handle, he agreed with his boss Davey that it’s “not about quantity but about finding the right titles and hopefully doing them right.”

Icon acquired U.S. and international rights (excluding Australia) to Oz comedy “The Man Who Sued God,” which stars Judy Davis and Billy Connolly.

Davey said Icon has held off on pre-selling the pic, preferring to wait until it’s finished, adding it will probably be launched at the pre-Mifed London Screenings.

A number of U.S. distribs expressed interest but none has been given a sneak preview. “Everyone can see it at the same time,” Davey said.

More Film

  • Alita Battle Angel

    'Alita: Battle Angel' Banks on Foreign Audiences to Save It From Box Office Disaster

    “Alita: Battle Angel” beat expectations with its $27 million debut at the domestic box office, but Fox’s cyberpunk fantasy adventure has a long road to travel before it can claim victory. When it comes to achieving profitability, the CGI-spectacular may never arrive at that particular destination. With a production budget hovering at $170 million (Fox [...]

  • Berlin Awarded 'Tess' Sells to Multiple

    Berlin Awarded 'Tess' Sells to Multiple Territories (EXCLUSIVE)

    Berlin-based sales agent Picture Tree Intl. has sold Steven Wouterlood’s coming-of-age film “My Extraordinary Summer with Tess,” which received a Special Mention from the jury of Berlin Film Festival’s Generation KPlus section, to distributors in several territories. Among the buyers are Les Films Du Preau in France, Proview Entertainment in Taiwan, Angel Films in Denmark, [...]

  • China Box Office: ‘Wandering Earth’ Reaches

    China Box Office: ‘Wandering Earth’ Reaches $557 Million in Second Week

    The winning films during China’s Lunar New Year holiday period remained on top of the local box office in their second normal weekend of release. Locally made sci-fi film “The Wandering Earth” pushed its total to $557 million. “Wandering Earth” earned $88.8 million between Friday and Monday, according to data from Asian film industry consultancy [...]

  • Nuno Beato’s ‘My Grandfather’ Part of

    ‘My Grandfather Used to Say He Saw Demons’ Marks Sardinha em Lata’s Animation Build

    Portuguese animator-producer-director Nuno Beato, whose credits include “Emma & Gui,” “Híssis” and the multi-prized “My Life In Your Hands,” will pitch a new project, currently in development, “My Grandfather Used to Say He Saw Demons” at Bordeaux’s upcoming Cartoon Movie, the leading European animated feature forum. Cartoon Movie runs March 5-7. Combining 2D and stop-motion, [...]

  • DF-10193 – L-R: Ben Hardy (Roger Taylor),

    'Bohemian Rhapsody' Leads MPSE Golden Reel Awards for Sound Editing

    “Bohemian Rhapsody” followed up love from Cinema Audio Society sound mixers with a pair of honors at the Motion Picture Sound Editors’ 66th annual Golden Reel Awards Sunday night. The musical biopic scored wins for dialogue and ADR as well as sound editing in a musical. The film is nominated for sound editing at the Oscars [...]

  • Melissa McCarthy as "Lee Israel" in

    Writers Guild Makes It Official: This Is the Most Wide-Open Oscars Race Ever

    For the record, we’re in uncharted territory this Oscar season. While we still have the costume designers’ ceremony to get through on Tuesday, the Writers Guild Awards put a bow on the major guild kudos circuit Sunday night. The results have yielded what is, unequivocally, the most wide-open Oscar field in history. The major guild [...]

  • Melissa McCarthy as "Lee Israel" and

    WGA Awards 2019: 'Can You Ever Forgive Me?,' 'Eighth Grade' Win Screenplay Awards

    In a pair of upsets, “Can You Ever Forgive Me?” has won the Writers Guild of America’s adapted screenplay award for Nicole Holofcener and Jeff Whitty and Bo Burnham has won the original screenplay award for “Eighth Grade.” The major television trophies went to “The Americans,” “The Marvelous Mrs. Maisel,” “Homeland” and “Barry” for the [...]

More From Our Brands

Access exclusive content