Australia acts to put its Hollywood lures back in place

Acting to offset a recent ruling by the Australian tax office that overseas investments in such films as Moulin Rouge and The Matrix were not eligible for tax breaks, the Australian government on Monday instituted a new set of rules that, while not restoring the tax breaks that were set aside, do apply for all films currently in production. The new tax incentives apply to all present and future films budgeted between $7.8 million and $26 million if at least 70 percent of the budget is spent in Australia. If more than $26 million of a film’s budget is spent in Australia, it will qualify automatically, regardless of the proportion spent in the country. Speaking at the opening of the Australian Film and Television school in Sydney today (Tuesday), Communications Minister Senator Richard Alston said that the incentives will make Australia more attractive to foreign film companies. He called it a direct investment in Australian talent.