Taxpayers to pick up bill for Luhrmann’s Australia
SYDNEY – According to Christine Sams, Entertainment Reporter with the Sydney Morning Herald, and in reports in the Sun Herald, Aussie taxpayers will end up paying for close to 25 percent of the production costs for the movie Australia, thanks to a tax deal between director Baz Luhrmann and the Federal Government.
Australia’s Arts Minister Peter Garrett has defended the Producer Offset scheme, which allows Luhrmann to claim back 40 percent of his production expenses at the end of this tax year.
The rebate was 12.5 percent before Australia was made.
“It’s not only Australia but a range of other motion pictures that will qualify,” Garrett said.
“That’s a really good thing because it means we’re seeing significant investment in the Australian film industry, but also in the ancillary services such as transport, technicians, the staging, hotels – all of the expenses that can happen in and around a film.
“It’s providing significant investment and economic boosting into our economy.”
While Australian taxpayers have been unaware about how much public money will go towards the making of Australia, US publication the Hollywood Reporter has hailed Luhrmann’s ingenuity in raising funds from the Australian Government.
“Luhrmann also had another miracle up his sleeve. This time, instead of making the sun come out, he made it rain – dollars,” said American film critic Shannon L. Bowen.
“Before Australia went into production, the Australian Government had already planned to increase its film production rebate from 12.5 per cent to 15 per cent,” the report said.
But Australia producer G. Mac Brown told the influential industry magazine, “Baz was able to convince the Government that Australian-based productions would get a higher incentive of a 40 percent rebate, which is a huge difference.”
The report said instead of claiming 12.5 per cent, then 15 per cent for the costs of filming that had already taken place [Australia had already started production], Luhrmann chose to wait until after the rebate came into effect, so he could claim 40 per cent on the remaining production costs.
That final figure is yet to be determined, Garrett said.
US reports indicated the rebate would cover up to a quarter of the film’s overall cost.
“The Australian Government ultimately will write Fox a cheque for 20 to 25 per cent of the film’s budget, resulting in a net budget of about $US100 million [$151million], half the film’s original price tag,” said The Hollywood Reporter.
A report by John Alwyn-Jones from the Sydney Morning Herald and The Sun-Herald
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