Draft legislation for PDV/Location offset changes

Assistant Treasurer Nick Sherry and Minister for Environment Protection, Heritage and the Arts Peter Garrett have released draft legislation for the PDV/Location offset changes announced in the 2010/11 budget.

The changes – PDV expenditure reduction from $5m to $500,000, and elimination of the Location Offset’s requirement of 70 percent Australian spend of total production budget for $15-50m projects – apply to productions  as of July 1.

Garrett said that the changes “remove barriers to offshore productions considering Australia as a production destination and provide opportunities for our world-class PDV providers to bid for additional work”.

The changes were welcomed by several industry players, but it has also been pointed out that further modifications – such as an increase of the 15 percent Location Offset – are still necessary.