Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Communications and the Arts, Senator Fifield. Can the minister update the Senate on the implementation of the new location incentive program?

Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

I can advise colleagues that the government recently launched a new program to attract international productions to Australia, called the location incentive. The purpose of this investment is to sustain Australian jobs in the film production sector and supporting industries through a competitive incentive program to ensure that there's a steady pipeline of international production. These productions will support the direct employment of over 3,000 Australian cast and crew and use the services of around 6,000 Australian businesses each year. The program was announced as part of the budget and opened for applications on 7 August. It is a competitive grant program that seeks the best deals for Australia. I'm pleased to acknowledge that it was welcomed by the opposition at the time of the budget.

Successful applicants need to demonstrate contributions to the broader economy. I'm very pleased that the government has announced the awarding of the two grants under the new location incentive program to attract international feature films to Australia. The government is committing $16 million in additional funding to secure two new productions for Australia: Godzilla vs. Kong, which is a feature film by Legendary Entertainment, and Reef Break, a 13-episode series by Disney/ABC International Television. This support will generate hundreds of jobs for the screen industry supply chain and bring investment of more than $100 million to the Australian economy. This is a very practical way that we are supporting small business in Australia, and we're able to this only because of good budget management. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Duniam, a supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that answer. Could the minister outline how this program helps the local screen industry?

Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

We've effectively got the existing 16½ per cent location offset tax rebate to the equivalent of 30 per cent through the addition of the location incentive. This makes Australia internationally competitive. What this is all about is jobs. We have the best film industry in the world. We've got great screenwriters, terrific producers, great directors, a great cast and crew, and fantastic carpenters and electricians, not to mention the businesses that support these endeavours. Collectively, they help to produce a product that's world class. What this means is continuity for those who are contracted as part of the screen business and continuity of work for those small businesses who rely on the pipeline of films going through the studios. It is good news.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Duniam, a final supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Finally, what are the broader benefits to the Australian economy of this support for the screen industry?

Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

What small businesses are doing all around the country is making our economy stronger and what we're doing as a government is backing in those small and medium sized businesses. We want their taxes to be lowered; we are lowering their taxes. In a very practical sense, that's what the location incentive is. These two productions will use the services of over 1,600 Australian businesses, as well as directly employing more than 1,300 Australians. There are also 5,500 room nights in commercial accommodation in just one of the productions alone. We've got our great landscape, which will encourage tourism, and our talented industry, which is something that those who produce these works overseas are very keen to avail themselves of.