‘Cannot restore a lost production’: Producers urge government to legislate removal of the Producer Offset’s 20 per cent ATL cap

The Federal Government is facing mounting pressure to legislate the removal of the 20 per cent cap on above-the-line costs under the Producer Offset, with a group of Australia’s most prominent production companies outlining the impact of the reform’s delay.

The cap, which applies to all films seeking the rebate except documentaries and covers costs including development and the wages of directors, producers and principal cast, was set to be removed from July 1, 2024, alongside the removal of minimum length requirements for content, as part of the May 2024 Budget.

At the time, Screen Producers Australia said the cap’s removal would put Australian screen stories on a more even playing field with international projects. The organisation has since been among those leading increasingly urgent calls for the government to prioritise the legislation, which the government says will apply retrospectively from July 1, 2024.

Now a cohort including Causeway Films, GoodThing Productions, Made Up Stories, Ludo Studio, Werner Film Productions, Goalpost Pictures and Roadshow Films has written to Arts Minister Tony Burke, Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino, in a letter seen by IF.

The letter, dated September 7, notes producers brought $1.1 billion in total expenditure to…