Australia/New Zealand

Incentives revamped as Oz auds shun local pics

By MICHAELA BOLAND

'Bra Boys'

SYDNEY -- Oz biz, from distribution through to financing, is in a massive flux.

Filmmakers are adjusting to a drastic overhaul of screen incentives introduced last year by the former coalition government and administered now by cost-conscious Labor newcomers.

A new federal agency, Screen Australia, bows July 1 and will combine the roles of documentary org Film Australia, coin agency the Film Finance Corp. and development body the Australian Film Commission.

Screen Australia will have the job of figuring out which projects are eligible for the new producer offset, which gives pics a 40% rebate and TV productions a 20% rebate on qualifying Australian expenditure.

Rebate replaces the 10BA fund-raising scheme for which the tax office is no longer issuing certificates.

Aussie-hatched projects, whether studio-backed, foreign or locally financed, can apply for provisional certificates to ascertain their eligibility for the producer offset.

Baz Luhrmann's Fox-backed "Australia" starring Nicole Kidman and Hugh Jackman was deemed sufficiently homegrown, while George Miller's W.B.-hatched "Justice League Mortal" starring Adam Brody and Armie Hammer wasn't.

Aussie filmmakers are fretting over these changes to the fund-raising process but in reality, Aussie pics constituted just 4% of the domestic B.O. in 2007.

"Happy Feet" was the top-grossing Australian film, with George Miller's internationally lauded animated musical adding $20.7 million to its 2006 earnings to reach a cumulative total of $31.8 million. Richard Roxburgh's multiaward-winning drama about an embattled migrant family, "Romulus, My Father," followed with $2.6 million in box office takings.

Greg McLean's crocodile thriller "Rogue" placed third for local films' B.O., with $1.8 million, followed closely by "Bra Boys," which took $1.7 million. "Bra Boys," the feature-length documentary narrated by Russell Crowe and written, directed, produced and featuring Sunny Abberton, is now the highest-earning Australian feature documentary on record.

Distribs willingly back Aussie fare, but their core business is from foreign pickups.

Palace has withdrawn from its hyperactive distribution of Aussie pics to a much smaller, Euro-

focused slate, while Hopscotch has taken an exec producer role in a few Oz titles.

As co-toppers of Dendy Distribution, Andrew Mackie and Richard Payten acquired few titles in the second-half of 2007 while Dendy's parent Becker Group was up for sale.

Becker's film companies were this year acquired by Mel Gibson and Bruce Davey's Icon, with Mackie and Payten ankling to run a new shingle, Transmission.

Icon will fold the Becker film distribution brands Becker, Dendy and Globe into a single Icon brand.

OZ STATS
FILM FINANCE AT A GLANCE
Total film production spend 2006-07: $215 million
Anticipated production spend for 2007-08: $280 million-plus

INCENTIVES
Location offset: 15% for productions spending A$50 million-plus ($47.1 million); productions spending A$15 million to A$50 million ($14.1 million to $47.1 million) are also eligible so long as it reps at least 70% of total budget.
Post, digital and visual effects offset: A 15% rebate for post, digital and visual effects production in Australia regardless of where a project was shot.
Producer offset: Gives qualifying Australian producers a 40% rebate on film and 20% rebate on TV productions
Various state-based rebates on payroll tax, digital effects and production.

WEB
Dept. of Environment, Water, Heritage and the Arts: arts.gov.au
Screen Australia: screenaustralia.gov.au
Ausfilm: ausfilm.com.au

B.O. STATS
Top film: "Harry Potter and the Order of the Phoenix," $32 million
Total B.O.: $835 million
Total number of releases: 317

PICKUPS
"Happy-Go-Lucky," Rialto
"Mongol," Hopscotch
"Knowing," Icon
"Dean Spanley," Transmission
"In the Electric Mist," Madmana

NEW ZEALAND STATS
INCENTIVES
Although Australia offers generous new production lures, New Zealand still has attractive programs.
The Large Budget Screen Production Grant delivers a 15% grant on New Zealand production spending more than NZ$15 million ($11 million). It also includes f/x and post production.
New Zealand Film Fund 2 offers funds for New Zealand producers on projects above NZ$6 million ($4.7 million) with at least 40% of the budget from an offshore source (with a commitment from at least one theatrical sales agent).

WEB 
Film New Zealand: filmnz.com

B.O. STATS
Top film: "Transformers" $5.5 million
Total B.O.: $119 million
Total numbers of releases: 215

PICKUPS
"The Diving Bell and the Butterfly," Icon
"Righteous Kill," Magna Pacific
"La sconosciuta," Arkles Entertainment
"Second Hand Wedding," Metropolis Film
"Apron Strings," Rialto