Screen Australia: Feature Film Production Program

Overview

Screen Australia's Feature Film Production program is the national film agency's primary mechanism for funding the production of Australian feature films. From 1 July 2025, the program was restructured into two tracks as part of a broader overhaul of Screen Australia's Narrative Content funding programs:

• Creative First: For projects without a distributor or sales agent attached. Available for projects with a production budget of $5,000,000 or less, with a direct funding request up to $500,000. Screen Australia issues a Letter of Interest (LOI) that the project must convert into full market attachment within four months
• Market First: For projects with an Australian and New Zealand (ANZ) distributor secured and a Rest of World (ROW) sales agent secured

Both tracks provide direct funding as either a non-repayable grant or a recoupable equity investment, depending on the amount. Direct funding from Screen Australia is separate from the Producer Offset, which is a tax-based rebate administered by Screen Australia on behalf of the Federal Government.

Available Funding

Funding Amounts

• Minimum request: $150,000 AUD
• Grant threshold: Funding at or below $500,000 AUD is generally provided as a non-repayable grant
• Equity investment: Funding above $500,000 AUD is provided as a recoupable equity investment
• Board referral: Applications requesting more than $1,000,000 AUD are referred to the Screen Australia Board for final decision if approval is recommended

Funding Caps (Combined Direct Funding + Producer Offset)

Screen Australia sets caps on the maximum combined amount of direct funding and Producer Offset support. The cap varies by budget level and track:

For feature films, the Producer Offset provides 40% of Qualifying Australian Production Expenditure (QAPE) for films produced for commercial exhibition in cinemas. The combined cap ensures total Commonwealth Government support does not exceed the specified percentage of the budget.

Key Financial Terms

• Grant funding: Non-repayable. Screen Australia's total contribution (including any development funds) at or below $500,000
• Equity investment: Recoupable. Screen Australia participates in gross receipts commensurate with its investment, generally pari passu with other equity investors
• Producer's equity: The Producer Offset portion and all Screen Australia grant funding are deemed producer's equity. Once all equity investment is repaid, the producer's profit share is 50%, with the remaining 50% shared pro rata among all equity investors
• Collection account: For feature films, Screen Australia generally requires appointment of a collection account manager (CAM) for all territories
• Completion guarantor: Screen Australia generally requires a completion guarantor for feature film production investment, depending on the producer's track record and project risk

What It Funds

Production investment covers the production phase of feature films by Australian filmmakers:

• Principal photography
• Crew costs and cast fees
• Locations, sets, and production design
• Post-production (picture, sound, VFX)
• Production infrastructure required to make the film

Projects must have completed development before applying. The production program does not fund development activities. Projects still defining their creative approach or building their production package are not ready for this program and should consider the Documentary Development or Narrative Content Development program instead.

A 10% contingency is required in the budget for feature film projects. Budgets must be presented in the A-Z Budget format available from the Screen Australia website, or in Movie Magic or EP formats with a QAPE spreadsheet included.

Eligibility

Applicant Eligibility

• Must be an incorporated company carrying on business in Australia, with central management and control in Australia
• Must have an Australian Business Number (ABN)
• Must be registered for GST if required by law
• Must control the rights necessary to carry out the project (clear chain of title, underlying rights agreements)
• Must not be a Commissioning Platform or related entity
• For Direct-to-Audience projects at $300,000 or below: individuals (sole traders) who are Australian citizens or permanent residents may apply, but must incorporate a company before contracting with Screen Australia

Project Eligibility

• Must be feature-length and intended for theatrical release
• Must have Significant Australian Content (SAC) or be an Official Co-Production
• Must be written and directed by Australian citizens or permanent residents (except co-productions)
• Must have finance in place and a complete finance plan
• Must not be a documentary (documentary projects should apply to Documentary programs)
• Must not have been declined twice for Screen Australia production funding
• Must be intended to commence pre-production no sooner than approximately six months after the application deadline

Market Attachment Requirements

Market First track requires both:

• An acceptable offer to theatrically distribute the project in Australia from an appropriate domestic distributor, with sufficiently detailed commercial terms
• An acceptable offer to represent the project for Rest of World (ROW) sales from an appropriate international sales agent, with sufficiently detailed commercial terms and sales estimates

Creative First track does not require market attachment at application. If successful, Screen Australia issues a Letter of Interest (LOI) valid for four months. The project must secure the required market attachments on terms acceptable to Screen Australia within that period. If the project cannot satisfy the LOI conditions by the deadline, the LOI lapses.

For projects applying for $500,000 or less with a total production budget of $5,000,000 or less: a waiver may be requested for the ROW sales agent requirement, provided at least one Letter of Interest (LOI) from an international sales agent is supplied. Contact an Investment Manager to discuss a waiver before applying.

Application Process

1. Contact an Investment Manager: Before applying, contact a Screen Australia Investment Manager to discuss your project. Email dramaproduction@screenaustralia.gov.au or call 1800 507 901
2. Read the guidelines: Review the Narrative Content Production Guidelines, Terms of Trade, Information for Applicants, and Information for Recipients
3. Prepare submission materials:

- Detailed budget and budget summary (A-Z Budget format or Movie Magic/EP with QAPE spreadsheet)

- Finance plan spreadsheet (current Screen Australia template)

- One-line shooting schedule and cast breakdowns

- All letters of offer, deal memos, and agreements for every line in the finance plan (not countersigned at application stage)

1. Submit via SmartyGrants: Complete the online application with all required materials

Applications are assessed at four decision meetings per year. Check the Screen Australia website for posted deadline dates. Applications not submitted by the relevant deadline cannot be guaranteed turnaround in time for the next meeting.

The Producer Offset

The Producer Offset is a refundable tax offset (rebate) separate from Screen Australia's direct production funding. It is calculated on a project's QAPE:

• 40% of QAPE for feature films produced for commercial exhibition in cinemas
• 30% of QAPE for other eligible projects (television, subscription services)

The Producer Offset is administered by Screen Australia on behalf of the Federal Government under the Income Tax Assessment Act 1997. Applicants must apply for a provisional certificate before or during production, and a final certificate after completion. The offset is claimed through the Australian Taxation Office (ATO).

Processing fees (GST inclusive, from 1 July 2025):

• Budget under $1,000,000: $161.00
• Budget $1,000,000 to under $5,000,000: $805.00
• Budget $5,000,000 to under $15,000,000: $1,616.00
• Budget $15,000,000 to under $30,000,000: $3,230.00
• Budget $30,000,000 or more: $5,652.00
• Reassessment fee: $220.00

The Producer Offset is not cashflowed by Screen Australia. The producer must contribute the offset value to the production budget, and the producer's expected contribution is at least 90% of the projected offset value for feature films.

Who Should Apply

Australian feature film producers with a project that has completed development, has a strong creative team attached, and is ready to move into production.

• Creative First: For projects with a budget of $5,000,000 or less that do not yet have a distributor or sales agent. The filmmaker must be confident they can secure market attachment within four months of receiving an LOI
• Market First: For projects with both an ANZ distributor and a ROW sales agent already secured

Projects with some marketplace interest already established, even at an early stage, are best positioned to compete successfully. Filmmakers building their production financing should consult an entertainment lawyer and an experienced producer before finalizing the financing plan, particularly to understand how Screen Australia's equity position affects other investors and participants in the recoupment waterfall.

See Also

For understanding how equity investment from national film agencies integrates into a production financing structure, see Documentary Financing: Building Your Stack. For building a production schedule and budget, use the Production Schedule Calculator. For understanding distribution deals and how marketplace attachment works, see Distribution Deals: What Filmmakers Need to Know.