ANNUAL REPORT 2017/18 AUSFILM ANNUAL REPORT 13.07.17.indd 1 14/8/18 9:50 am 2 AUSFILM | Annual Report 2017/18 AUSFILM ANNUAL REPORT 13.07.17.indd 2 14/8/18 9:50 am CONTENTS WHAT WE DO 4 OUR YEAR IN NUMBERS 6 MESSAGE FROM THE CHAIR 10 MESSAGE FROM THE CEO 12 CONNECTING WITH OUR CLIENTS 14 AUSFILM PARTNERS 20 MARKETING AND COMMUNICATIONS 22 MAKE IT IN AUSTRALIA: DIRECT FOREIGN INVESTMENT 28 CONNECTING WITH MEMBERS 32 OUR PERFORMANCE - POLICY AND GOVERNANCE 38 APPENDICES 40 AUSFILM | Annual Report 2017/18 3 AUSFILM ANNUAL REPORT 13.07.17.indd 3 14/8/18 9:50 am WHAT WE DO Ausfilm helps filmmakers find what they need in The Ausfilm team in Australia and USA can provide Australia to bring their stories to life. services, information and referrals to international filmmakers on the following: Ausfilm markets Australia’s Screen Production Incentive Scheme which comprises the 16.5% • Information about Australia’s federal and state Location Offset; the new Location Incentive screen production incentives; ($140m over 4 years); 30% PDV (post, digital and • Official co-productions; visual effects) Offset and 20-40% Producer Offset. • Studio complexes, production services and The Location and PDV Offsets and Location equipment providers; Incentive are administered by the Department of Communications and the Arts. The Producer Offset • Post-production, music, sound, digital and visual is administered by Screen Australia. effects capability and facilities, travel, freight and legal services; Ausfilm is a unique partnership organisation • Facilitate online location pitches for international between private industry and government. This producers, in partnership with the state screen partnership comprises Australia’s federal and agencies; state governments, the major studio complexes, • Budget comparisons; and production service providers and leading post, • Upon application, support for familiarisation visual effects, animation and sound/music studios. scouts of Australia including meetings with key crew and Ausfilm member screen services Ausfilm is supported by the Australian Government companies. through the Department of Communications and the Arts. Ausfilm’s head office is based in Sydney, and our subsidiary organisation, Ausfilm USA Inc. is based in Los Angeles. Ausfilm USA works closely with the Sydney Ausfilm office in promoting Australia’s film and television production incentives; diverse locations; sound stages; post-production and visual effects companies; and award-winning filmmaking talent. Ausfilm is the gateway for international filmmakers looking to film, post and/or co-produce in Australia. Ausfilm USA Inc is incorporated in California and is governed by a Board of Directors. 4 AUSFILM | Annual Report 2017/18 AUSFILM ANNUAL REPORT 13.07.17.indd 4 14/8/18 9:50 am OUR PURPOSE TO MAXIMISE THE AMOUNT OF INTERNATIONAL PRODUCTION SPEND IN AUSTRALIA. OUR STRATEGIC DIRECTIONS 1. SECURE OPPORTUNITIES & ENABLE GROWTH OF THE AUSTRALIAN SCREEN INDUSTRY 2. ENSURE ENGAGEMENT AND PROMOTION OF MEMBERS 3. ENSURE AN OPERATIONALLY SOUND & EFFICIENT ORGANISATION AUSFILM | Annual Report 2017/18 5 AUSFILM ANNUAL REPORT 13.07.17.indd 5 14/8/18 9:50 am OUR YEAR IN NUMBERS SALES LEADS LA introductions206 for Ausfilm members, Australian producers and industry professionals International79 projects tracking 10 45 International New project leads obtained Physical Production Projects Attracted 5 AUSFILM & STATE AGENCY FUNDED SCOUTS: Ausfilm 2 US 1 Hong Kong 1 US/CA 1 UK + assisted scouts: 2 US 20 YEARS CONNECTING 48 International 48 Post, Digital & VFX Projects BILLION Attracted ESTIMATED TOTAL DIRECT FOREIGN INVESTMENT 46 AUSFILM | Annual Report 2017/18 AUSFILM ANNUAL REPORT 13.07.17.indd 6 14/8/18 9:50 am MARKETING & COMMUNICATIONS 7 Global marketing campaigns 25 Global direct digital client campaigns 126 Digital blog posts AUSFILM MEMBERSHIP AUSFILM’S 6 Federal & state agencies 26 Corporate members GLOBAL 8 Platinum members 2 New corporate members PRESENCE USA, CANADA, CHINA 344 US meetings with studio executives & producers MEMBER ENGAGEMENT 6 157 Member engagement meetings Australia & USA Major international Ausfilm-hosted events 29 Prospective member pitches 19 11 Australian events hosted for members Global events & markets hosted or attended AUSFILM | Annual Report 2017/18 7 AUSFILM ANNUAL REPORT 13.07.17.indd 7 14/8/18 9:50 am AUSFILM CONNECTING YOU FOR 20 YEARS 2018 marks the twentieth anniversary of the incorporation of Ausfilm. In 1989 a small group of Australian companies responded to an increased level of enquiries received by Austrade’s Los Angeles office from Hollywood producers looking to shoot in Australia; they saw a need to create a bridge between the Australian and Hollywood film and television industries for the benefit of the whole Australian industry. The companies decided to share the costs for in-bound scouts to showcase Australia’s locations, infrastructure and capabilities. Subsequently in 1994, with the support of Austrade, the Export Film Services Association (EFSA) was established and then in 1998 the EFSA became Ausfilm Incorporated with an executive in LA working out of Austrade offices and an executive in Sydney. By 2002 Ausfilm had grown in size with more than 70 members, including television commercial production companies. In 2001 the Australian Government offered the first international incentive, the Refundable Tax Offset at 12.5%and provided Ausfilm with funding to promote the incentive and all that Australia has to offer in terms of talent, facilities and locations. The support enabled Ausfilm to increase its staff in both Sydney and Los Angeles. Today Ausfilm is a unique private-public partnership of 41 members; a not-for-profit organisation funded by member subscription fees and a Federal Government Funding Agreement. There are three full-time staff in LA and currently six staff in the Sydney office. 8 AUSFILM | Annual Report 2017/18 AUSFILM ANNUAL REPORT 13.07.17.indd 8 14/8/18 9:50 am AUSFILM | Annual Report 2017/18 9 AUSFILM ANNUAL REPORT 13.07.17.indd 9 14/8/18 9:50 am MESSAGE FROM THE CHAIR The most welcome news during the year was The makeup of the Ausfilm Board changed the announcement, in the context of the 2018/19 significantly during the year due to changes among federal budget, that a Location Incentive is to be the screen agency members. Jenni Tosi had established. Worth $140 million over four years, the announced her departure from Film Victoria before Incentive is designed to raise the effective rate of the 2017 AGM and we welcomed Caroline Pitcher the Location Offset to 30%. This will boost Australia’s back to the Board as CEO of Film Victoria. Ian Booth competitiveness in the short to medium term and also announced his departure from Screenwest after is a useful building block towards the stability and a decade of service to the screen industry in Western certainty that a permanent increase to the Location Australia. Seph McKenna was welcomed to the Board Offset would give. Ausfilm appreciates this initiative as CEO of Screenwest. When Annabelle Sheehan by the Australian Government and will continue to moved to the NZFC, Courtney Gibson became CEO advocate for the increase to be made permanent. of the SAFC and was welcomed back to the Board. Graeme Mason came on to the Board when Richard In this regard it was also encouraging to see that Harris moved on from Screen Australia. Finally, when a permanent increase is supported by the House Michael Brealey moved on from Create NSW, Grainne of Representatives Communications and Arts Brunsdon joined the Board as the Create NSW Committee in tabling its report into the screen representative. industry. Two Corporate Member Board positions become The extensive number and range of marketing available with Zareh Nalbandian and Tony Clark’s & promotion, research and advocacy activities three year terms expiring at the 2018 AGM. Both are undertaken by Ausfilm continued during the eligible for re-election. year. Ausfilm continued its work to encourage international screen production and post- The Ausfilm Board continues to provide a dedicated production to Australia, including major missions investment of time and focus on the work of Ausfilm in LA and in China, business matching projects and ensuring it is positioned as an internationally showcasing Australia’s talent, services and facilities. respected screen marketing agency and has also Ausfilm’s efforts in China, in partnership with the continued to greatly assist Ausfilm’s key advocacy Australian Embassy in Beijing and Screen Australia, work both at the Federal and state levels. The Board are paying dividends with 18 Chinese projects either met six times during the 2017/18 year. I want to thank shooting in Australia or undertaking PDV work here. the Board for their service and contribution during Ausfilm also appreciates the focus on assisting the the year. industry by Austrade. The Board has been greatly assisted in its Ausfilm maintained an information gateway to governance function by the Finance, Audit and Risk assist foreign producers and studios to understand (FAR) Committee, Chaired by Wayne Borg. Thank the capability and capacity of Australia’s screen you to Wayne and the other members of the FAR production industry as well as the relevant Committee – Simon Rosenthal, Elle Croxford and regulations and incentives provided by all levels of Tracey Vieira – for their work. government in Australia. I also want to thank Debra Richards and the Ausfilm continued to provide advice and information dedicated staff at Ausfilm for their work during to the Australian Government in relation to screen the year. production, domestically and internationally, and engaged with other Commonwealth agencies for Bob McMullan the exchange of information and co-ordination of Chair promotional and marketing activities. 10 AUSFILM | Annual Report 2017/18 AUSFILM ANNUAL REPORT 13.07.17.indd 10 14/8/18 9:50 am AUSFILM CONTINUED ITS WORK TO ENCOURAGE INTERNATIONAL SCREEN PRODUCTION AND POST-PRODUCTION TO AUSTRALIA, INCLUDING MAJOR MISSIONS IN LA AND IN CHINA.