A Producer Offset loan is a loan from EFIC to a production company to finance eligible Australian film, documentary and television productions with international distribution agreements.

Producer Offset loans from EFIC complement the Australian Government’s Producer Offset incentive, which provides refundable tax offsets (rebates) for producers of Australian feature films, television and other projects.

The loan is specifically designed to help smaller productions that are eligible for the Producer Offset but may have difficulty in attracting finance in the commercial market. EFIC may also be able to assist larger productions, subject to additional due diligence.

Who is eligible?

To apply for a Producer Offset loan, you must:

• have a demonstrated track record of delivering similar, successful film, documentary or television productions
• have established a ‘special purpose vehicle’ (SPV) production company in Australia for producing your film or program with at least one shareholder being an individual
• have a Provisional Certificate from Screen Australia stating the estimated level of qualifying Australian production expenditure (QAPE) for the project verified by an independent third party production accountant acceptable to EFIC
• provide a written legal opinion in respect of chain of title documentation confirming that you hold all the necessary rights to undertake the production
• provide written evidence that the entire budget for the project, other than the funds to be provided by our Producer Offset loan, is committed, on terms acceptable to EFIC, including:
  • copies of signed, legally binding international distribution agreements
  • a detailed budget schedule
  • copies of other funding/investment agreements or letters of intent
  • confirmation of investment by Screen Australia in the production (generally required)
• provide a completion guarantee (bond) through an acceptable completion guarantor with agreement to bond 85% or more of QAPE on terms acceptable to EFIC
• provide a copy of a written agreement to employ an approved collection agent

What are the benefits?

• Provides cash flow to assist in funding your production
• Upfront access to funds for production, bridging the funding gap between when you incur production costs and when you receive the Producer Offset

How does a Producer Offset loan work?

1. You provide EFIC with a Provisional Certificate from Screen Australia and other necessary documentation in respect of the project
2. You provide EFIC with security for the Producer Offset loan, including a completion guarantee, a fixed and floating charge over your SPV production company, and a guarantee from the parent/sales company
3. EFIC provides you with the Producer Offset loan
4. After you complete production and receive a Final Certificate from Screen Australia (stating the final value of QAPE), you submit a tax return and the Final Certificate to the Australian Taxation Office (ATO)
5. The ATO pays the Producer Offset and your tax agent deposits it into a designated bank account controlled by EFIC
6. The EFIC loan is repaid from the funds in the designated bank account.

Terms and conditions

Loan amount

EFIC will lend an amount equal to up to 85% of the estimated Producer Offset, based on the Provisional Certificate. The minimum loan amount is $100,000, and the maximum is $500,000.

Term

Flexible terms of up to two years.

Fees and charges

Fees and charges will vary depending on a number of factors, including EFIC’s risk assessment, the amount and term of the loan and the complexity of documentation required.

Security

EFIC requires a completion guarantee, and fixed and floating charge over your ‘special purpose vehicle’ production company as security for the loan. EFIC also requires a guarantee and indemnity from the parent/sales company and, in some circumstances, may require a fixed and floating charge over the guarantor.

The authorised tax agent must provide an irrevocable undertaking to deposit the ATO refund into the designated bank account

If you meet the eligibility criteria and want more information on how a Producer Offset loan can help finance your production, contact EFIC on 1800 093 724.

For more information on the Producer Offset, contact Screen Australia on +61 2 8113 1042 or visit www.screenaustralia.gov.au/producer_offset.

NOTE: Information on terms and conditions is supplied as a guideline only. EFIC’s compliance with legislation and OECD guidelines, together with its credit assessment and other policies, influence the actual terms and conditions that may be applicable to any eventual transaction with EFIC.

The information provided does not comprise advice or a recommendation and EFIC makes no representation or warranty relating to it. To the maximum extent permitted by law, EFIC will not be liable for any direct or indirect loss or damage incurred by any person on the basis of this information.