Qualifying Australian Production Expenditure

QAPE (Qualifying Australian Production Expenditure)

QAPE (Qualifying Australian Production Expenditure) is a subset of production expenditure. QAPE is the basis for determining whether minimum expenditure thresholds have been met (see Key Requirements) to provide the basis of the Producer Offset, as funding is a fixed percentage i.e. 20%-40% of QAPE on a certified project.

Key Requirements

  • You must have prior titled credits on a previous film. For example, be credited as a producer, director etc. on a prior film that has been distributed at a film festival, cinema or screened on a television network
  • Meet the minimum threshold budget requirements:
    • Feature films – 40% QAPE offset, minimum film budget of $500,000
    • Non-feature single-episode drama programs including direct-to-DVD films, telemovies and films made for online distribution – 20% QAPE offset, minimum budget $500,000
    • Documentary projects – minimum budget of $500,000
  • You are expected to co-fund your production. For example, a single-episode drama with a budget of $500,000 looking to seek a 20% QAPE offset, must first have $400,000 available to produce the episode

What is eligible for funding?

QAPE is defined as the company’s production expenditure that is incurred for, or is reasonably attributable to:

  • Goods and services provided in Australia
  • The use of land located in Australia
  • The use of goods that are located in Australia at the time they are used in the making of the project.

Note that because QAPE is for services provided in Australia, where a company contracts an Australian firm to provide production services and that firm subcontracts to a non-Australian firm or undertakes some of the service outside of Australia, the proportion of the expenditure that is undertaken outside Australia is non-QAPE.

Depending on your project, the following may be considered QAPE:

  • Completion guarantor fees
  • All production insurances, including E&O Insurance
  • Company set up fees for special purpose vehicles
  • Investors’ audit fees
  • QAPE opinion fees
  • Production company legal fees associated with financing (e.g. work on the PIA)
  • Marketing, publicity and distribution costs e.g. study guides production, posters, trailers etc.
  • Publicist services – if the expense is incurred after the film is completed but prior to the end of the financial year
  • Distribution expenses – acquiring Australian classification certificates, sound mastering licenses, storing the film in a film vault in Australia, etc.
  • Carbon emissions offsetting costs
  • Foreign currency exchange

The above examples are often subject to conditions and satisfying activity tests.

How can Avant Group help me?

Avant Group’s film funding department works with Australian production houses and filmmakers to gain funding and loans to help produce and distribute locally made productions to the world.

We can help determine your eligibility, as well as help ensure you are maximising your claim.

We can help you prepare your application and write your application on your behalf, help understand the funding and prepare for any auditing requirements.