South Australia Uncaps Post-Production Rebate Scheme

The state of South Australia is to expand its existing rebate scheme for post-production, digital and visual effects. The move is intended to attract more large-budget and international productions.

The new Post Production, Digital and Visual Effects Rebate comes into effect from Jan. 1, 2018, and will see companies receive a rebate of 10% of their South Australian expenditure. The current scheme is a grant capped that at $115,000 (A$150,000).

The scheme is intended to mirror and complement the Australian federal government’s PDV offset of 30%. That means South Australian post-production and effects companies, such as Adelaide Studios, Rising Sun Pictures and Kojo, can now offer international films a combined 40% rebate on spend in the state.

“The PDV rebate is not limited by funding, increasing the scope and diversity of productions who are able to bring their post to South Australia. The rebate is uncapped, automatic and non-discretionary for productions that meet the guidelines,” the South Australian Film Corp. said in a statement.

The state, which includes the city of Adelaide, says the new scheme puts local firms in a better position to compete for work, especially for on-demand content being produced for platforms such as Netflix and Amazon. It says that it will encourage new entrants into the South Australian VFX ecosystem, and broaden the digital capabilities of the state.

“This is the most substantial investment ever directly injected into South Australia’s film industry, and will make us incredibly competitive in attracting big-budget activity to the state,” said South Australia Minister for the Arts and Premier Jay Weatherill. The state calculates $153 million (A$200 million) of economic benefit.

“Visual effects are an increasingly important skill set for multiple industries outside the film and television sectors including in defense, education, medical and manufacturing. So, investing in the film industry where talent with VFX capabilities is fostered will make South Australia more competitive across multiple industry sectors,” said Investment and Trade Minister Martin Hamilton-Smith.

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