Post, Digital & Visual Effects Rebate

For the purposes of the Rebate, “post‐production, digital and visual effects” or “PDV” covers the creation, editing and mixing of audio or visual elements and other necessary related activities (other than principal photography, pick‐ups or the creation of physical elements such as sets, props or costumes).

Only PDV related activities carried out in NSW can qualify for the Rebate.

To be eligible for the Rebate, the following criteria must be met:

• The applicant must be an eligible entity
• The project must be an eligible format
• A project’s qualifying NSW PDV expenditure must meet or exceed the AU$500,000 minimum NSW spend threshold
• The applicant must submit an application to Screen NSW. Only PDV related activities performed on or after the date an application is submitted will be eligible for the Rebate.
• The applicant must not be in breach of any obligation under any funding agreement it has with the State including under this Rebate program.
  
  

To be eligible for the Rebate the applicant must:

• Have an Australian Business Number (ABN)
• Be the company that is either carrying out or is responsible for making the arrangements for the carrying out of all the activities in NSW that are related to the post, digital and visual effects for the project.
  
  

The applicant may be:

• An NSW PDV company
• An Australian producer not otherwise ineligible under this clause
• An international producer or studio
• A Special Purpose Vehicle (SPV).

Please note, only one company can apply for the Rebate for a particular project.

An applicant cannot be a licensee of a service under the Broadcasting Services Act 1992 (Cth) or a related body corporate of such a licensee (as defined in the Corporations Act 2001 (Cth)).

Minimum NSW spend threshold

An eligible project must commit to meet qualifying NSW PDV expenditure of at least AU$500,000 at the time of application.

Multiple projects cannot be bundled to achieve the AU$500,000 threshold, however, a season of a TV series will be considered a single project.

A project that does not meet the minimum qualifying NSW PDV expenditure threshold of AU$500,000 at the time of acquittal will not qualify for any of the Rebate. However, if contracts are issued in foreign currencies, the applicable exchange rate for determining whether the threshold has been met will be the exchange rate for the day on which PDV activity commenced on the project in NSW.

Formats

Eligible formats for the Rebate are:

• Fiction – feature films, telemovies, mini‐series, pilots and series
• Documentary – feature films, television one‐offs or series.

Feature films must be a minimum of 60 minutes in duration, except for large format/IMAX projects which must have a minimum duration of 45 minutes.

Eligible projects must be intended for distribution to the public, which includes theatrical release, television broadcast, streaming or other online distribution.

Ineligible formats include but are not limited to:

• Short films (under 60 minutes)
• Reality programs
• Television serials
• Advertising programs or commercials
• Discussion, quiz, game, panel or variety programs, or programs of a like nature
• Filmed recordings of public events
• Training films
• Student films
• Computer games within the meaning of Classification (Publications, Films and Computer Games) Act 1995.
• Projects that are likely to be X18+ or Refused Classification under the Classification (Publications, Films and Computer Games) Act 1995.
  
  

Qualifying NSW PDV expenditure must be related to post, digital and visual effects activities that are carried out in NSW and incurred by the applicant.

The following expenditures qualify for the Rebate:

• Payments to PDV suppliers whose principal place of business is in NSW or that have an office or branch in NSW that is supplying the goods or services
• Salaries and associated payments to PDV crew, including employees and independent contractors. All PDV crew members, including producers and executive producers, whether Australian or non‐Australian residents, must remain in NSW and work on the project in NSW for at least two consecutive calendar weeks for expenditure attributable to their stay to be recognised as qualifying NSW PDV expenditure. Each visit is considered separately. Above the line fees are limited to 20% of qualifying NSW PDV expenditure.
• NSW workers compensation payments and payroll tax
• Acquisition/licensing of additional material, such as music, used during PDV and where the material is NSW‐held copyright or created by an NSW supplier. For projects registered on or after 1 July 2020, fees for acquisition or licensing of archival footage are limited to 20% of qualifying NSW PDV expenditure.
• Depreciation of assets, to the extent they are used in the PDV activity related to the project
• Business expenses as they relate to PDV such as some insurances, legal, accounting and auditing expenses. General business overheads are limited to 2% of qualifying NSW PDV expenditure.
  
  

The following expenditure is specifically excluded:

• Payments for PDV services undertaken outside NSW
• Expenditure on international or interstate travel or freight
• Payments to service providers which are offset by a reinvestment or any other financial contribution to the project
• Any expenditure that precedes the date of application for registration
• Salaries and associated payments to crew members (including producers and executive producers) who work on the project in NSW for less than two consecutive weeks.
  
  

All transactions with interested or related parties must be on an arm’s-length basis.

Other than exclusions specifically noted above, qualifying expenditure generally follows what is outlined in the Australian Government’s PDV Offset Guidelines, provided it is performed in NSW.

For more information, please read the Australian Government’s PDV Offset glossary, which provides detailed information on specific qualifying PDV expenditure matters.

Applicants with projects that are eligible for the Rebate may be eligible for funding support from other Screen NSW programs. However, if the applicant intends to or has applied for the Rebate, only the non‐PDV component of the production budget will be eligible for support from other Screen NSW programs.

Projects which have previously received or been approved for Made in NSW funding or Production Finance are not eligible for the Rebate if any part of that funding related to PDV activities.

Reporting requirements will be set out in full in the Letter of Offer and will include:

• An audited ledger/statement of qualifying NSW PDV expenditure with contracts, invoices, purchase orders and change orders
• Number and category of local jobs generated by the project and attributable person days
• Full credit list of PDV crew
• Federal PDV acquittal (if relevant)
• A statutory declaration supporting the data provided (templates: applicant, vendor).

The PDV vendor will need to provide a statement confirming that all services were provided in NSW or, if not, the amount attributed to non‐NSW services.

Applicants that are also receiving the federal PDV Offset should provide their federal audit certificate within 30 days of its receipt.

Each applicant must participate in any reasonable survey or feedback requests made by Screen NSW, both during the application phase and up to two years following acquittal.

When the applicant is not the PDV company, the applicant must include the reporting obligations contained in this clause in its contract with each NSW PDV supplier it engages for the project. It is the applicant’s responsibility to ensure that it (and any supplier it engages) creates and maintains full and accurate accounts and records of the project’s PDV‐related activities.

Applicants must specify anticipated dates for commencement and completion of qualifying PDV work and final claim in their application. The qualifying PDV related activities need to commence within three months of the nominated start date unless otherwise agreed in writing with Screen NSW. Claims must be made within six months of project completion.

The claim date for applicants receiving the federal PDV Offset is extended to 30 days from receipt of the federal PDV audit certificate. All claims must be made within three years of a Letter of Offer. For projects with a PDV duration of more than three years, applicants must contact Screen NSW at least six months before the three‐year deadline to discuss.

Applicants must provide a copy of the completed project and all delivery items specified in the Letter of Offer. Delivery items will include an excerpt of up to one minute from the finished project, still images, digital copies of posters and an HD trailer without watermarks. Delivery items are used by the NSW Government to promote the State’s screen industry. The NSW Government may publish the project title, a brief description and agreed project outcomes.

The NSW Government reserves the right to make a public announcement for any project which receives the Rebate. Any public announcement will be made in consultation with the applicant.

Screen NSW will process a Rebate claim within six months of receiving an acquittal that is fully compliant with the project’s registration, inclusive of all required delivery items. 

The State must receive the following end credit in the version of the project intended for release: POST PRODUCED [and/or “VFX SERVICES PROVIDED” and/or “ANIMATION PRODUCED”, as appropriate] IN [city] NEW SOUTH WALES, AUSTRALIA, WITH THE ASSISTANCE OF THE NEW SOUTH WALES GOVERNMENT and include the NSW Government logo.

All filmmakers are reminded of their responsibilities when dealing with Indigenous cultural material. Please familiarise yourself with Screen Australia's Pathways and Protocols guide.