Australian television shows such as Home and Away will be able to compete on a level playing field with Hollywood streaming companies such as Netflix, Apple Tv and Disney+, after federal government changes to tax laws in the industry.
Australian producers have long complained that local productions are unfairly disadvantaged because the tax breaks offered to the industry only apply to mega-budget productions that invariably only Hollywood studios can afford in Australia.
On Friday the arts minister, Tony Burke, announced changes to the threshold spend to qualify for one of those tax breaks, known as the Producer Offset.
Currently television series can receive a 30% tax break if it costs at least $500,000 to produce each hour. Under the new system, series that do not meet this requirement will still be eligible if they spend at least $35m a season.
“This means shows like Channel Seven’s Home and Away would be eligible, where they previously weren’t,” Burke said in a statement, adding that the changes would help industry professionals secure ongoing work and promote the telling of uniquely Australian stories.
“We want to see more Australian stories shown on screen,” he said. “Backing in Australian drama is essential to that.”
The changes will benefit any drama that films significant hours over a season, such as shows that screen dozens of episodes a year but do not meet the current per-episode spend requirement.
The changes will not come into effect until mid next year.
The Screen Producers Association (SPA) was unavailable for comment on Friday. The peak body has been lobbying the government for more local access to generous tax breaks, which have over the past 15 years delivered an estimated $3.466bn in savings to mainly multinational and overseas studios.
Channel Seven, which airs Home and Away, welcomed the changes. The Seven West Media chief executive, James Warburton, said the show’s new access to the tax break “will enable us to increase Home and Away’s domestic and international appeal, ensure it remains competitive as an Australian drama, and reinforce the significant contribution it makes to the Australian TV industry and Australian culture”.
The network announced on Friday that as a result of the tax reform, it would establish a new internship program and invest in more location filming, including in regional Australia.
The screen industry’s other battle with the federal government over streaming services’ unfair advantage in the Australian market – legislating a minimum local content quota –is still under government review, with any changes to legislation not expected until mid next year.
