Australia's federal incentive is three separate offsets under one banner, and they're mutually exclusive. If a project gets a final certificate for the Location or PDV Offset, it can't claim the Producer Offset. So the first job in prep is to work out which one the project fits, then build the budget around that offset's definition of QAPE.
The three offsets side by side
| Offset | Rate | Minimum QAPE | Who administers it |
|---|---|---|---|
| Location Offset | 30% | A$20 million (series also A$1.5m per hour) | Office for the Arts |
| PDV Offset | 30% | A$500,000 of PDV work | Office for the Arts |
| Producer Offset, theatrical feature | 40% | A$500,000 or A$1 million depending on format | Screen Australia |
| Producer Offset, TV and other formats | 30% | A$500,000 or A$1 million depending on format | Screen Australia |
The Location Offset rose to 30% for productions starting principal photography on or after 1 July 2023. Screen Australia's 2026 brochure lists no expenditure cap and no sunset on either the Location or PDV Offset.
For a longer walk through the choice between them, read shooting in Australia: the Producer Offset and Location Offset.
What the offset is worth at different budgets
A A$1,000,000 production can't touch the Location Offset. The threshold is twenty times that. There are two ways a project this size gets money back.
If it's an Australian feature for cinema release and passes the significant Australian content test, the Producer Offset pays A$1,000,000 x 0.40 = A$400,000, assuming every dollar is QAPE. Not every budget line counts as QAPE, so expect the base to come in below the budget.
If it's a US film that shot elsewhere and sends A$1,000,000 of VFX and post to an Australian vendor, the PDV Offset pays A$1,000,000 x 0.30 = A$300,000.
At Location Offset scale, take a series spending A$24 million of QAPE across eight one-hour episodes:
- Threshold check: A$24,000,000 is over A$20,000,000
- Per-hour check: A$24,000,000 / 8 hours = A$3,000,000 per hour, over the A$1.5 million floor
- Offset: A$24,000,000 x 0.30 = A$7,200,000
State money stacks on that figure. Screen Australia notes some states offer 15% or more on PDV work, and each state sets its own rules for location shoots.
Certificates and timing
- Decide the offset. A US studio picture shooting in Queensland takes the Location Offset. An Australian feature with an official co-producer under one of Australia's co-production treaties takes the Producer Offset. The treaty partners listed in the 2026 brochure include Canada, France, Germany, Ireland, Italy, New Zealand, and the UK.
- Apply for a provisional certificate. For the Producer Offset, Screen Australia quotes 8 to 10 weeks for provisional certificates and fees of A$168 to A$5,884 depending on budget.
- Keep QAPE separate from non-QAPE in the chart of accounts from day one. The final certificate application needs an audited QAPE statement.
- Apply for the final certificate after completion. Screen Australia quotes 12 to 16 weeks for Producer Offset final certificates.
- The production company claims the refundable offset in its Australian tax return once it holds the final certificate.
Where productions come unstuck
The Location Offset's PDV condition is easy to miss. The production must use at least one Australian PDV provider and meet training obligations or contribute to workforce or infrastructure capacity, so a show that plans to take all post back to Los Angeles needs a plan for that condition early.
The one-offset rule also bites on co-productions that drift. If an Australian project with foreign money ends up failing the significant Australian content test, it can't fall back on the Location Offset unless it clears the A$20 million bar.
The Producer Offset needs the cultural test style assessment known as significant Australian content. If you haven't been through one of these assessments, start with our guide to cultural tests.
Australia and New Zealand
New Zealand is the obvious comparison. Its international rebate is 20%, or 25% with the uplift, but the live action minimum dropped to NZ$4 million on 1 January 2026, far below Australia's A$20 million. A mid-budget feature that can't reach Australia's threshold may do better across the Tasman, while a series spending well over A$20 million gets a higher rate in Australia. The incentives hub lists every country, and tax incentives and global film production covers why productions move in the first place.