More than 30 leading Australian film and television producers have called on the Albanese government to urgently enact a long-promised tax reform aimed at supporting the local screen industry. In a letter addressed to Arts Minister Tony Burke, Treasurer Jim Chalmers, and Assistant Treasurer Daniel Mulinon, the group warned that delays in legislating the measure threaten thousands of jobs, millions of dollars in investment, and the future viability of domestic productions.

The producers, representing over 20 major companies including Causeway Films, Made Up Stories, Ludo, Arenamedia, Jungle Entertainment, Bunya Productions, Roadshow Films, and Curio Pictures, urged the government to remove the current 20 percent cap on above-the-line (ATL) costs eligible for the Australian Producer Offset. Above-the-line costs include expenses related to lead actors, writers, directors, and producers, which are critical to securing internationally competitive casts and creative talent.

The cap, which was initially identified as an issue in the 2024 budget, limits the amount of ATL expenditure that can count towards qualifying Australian production expenditure (QAPE) for tax rebate purposes. The Producer Offset provides a rebate of 40 percent for eligible feature films and 30 percent for other formats, with eligibility based on minimum running time and QAPE thresholds. However, the 20 percent cap on ATL costs means projects with higher-profile talent often face financing difficulties as these expenses exceed the limit and reduce the rebate’s effectiveness.

The producers argue the legislative delay undermines the scheme’s intent to encourage Australian-owned productions and maintain creative control domestically. They note that in some cases, it is more financially viable for projects to be structured as foreign productions or to be moved offshore where no such caps exist. The letter states it is “commercially nonsensical” for Australian filmmakers to consider relinquishing intellectual property or relocating production to other countries due to these constraints.

Causeway Films’ Samantha Jennings and Kristina Ceyton, whose credits include The Babadook, Talk to Me, and Bring Her Back, emphasized the negative impact of the delay. They warned that millions of dollars in potential reinvestment into local budgets could be lost, compromising employment and cultural outcomes. Similarly, GoodThing Productions’ Nick Batzias and Virginia Whitwell estimate that an upcoming project may lose about $1.4 million in qualifying production expenditure due to the cap.

The producers have called for the amendment to be included in the next Treasury Laws Amendment Bill to ensure bipartisan support and prompt passage. Treasury is responsible for drafting tax reform legislation and developing policy on this issue.

This appeal follows concerns raised earlier in 2026 that a $30 million film producing roughly 1,000 Australian jobs might be relocated to New Zealand unless the above-the-line cap was removed, underscoring the broader industry risks associated with the current policy impasse.