The Australian Government has announced several corporate tax-related changes in the 2024-25 Mid-Year Economic and Fiscal Outlook (MYEFO). These updates impact R&D tax incentives and film production tax offsets, shaping the financial landscape for businesses in affected industries.
1. Changes to R&D Tax Incentive Eligibility
From 1 July 2025, businesses involved in gambling and tobacco-related activities will no longer qualify for the Research & Development (R&D) tax incentive. However, activities aimed solely at harm reduction—such as addiction reduction research—will continue to be eligible for R&D support.
Implications for Businesses
- Companies conducting R&D in gambling or tobacco must reassess their tax incentive eligibility before the next income year.
- Businesses involved in harm-reduction initiatives should ensure they meet the revised eligibility criteria.
2. Increased Support for Large Budget Film Productions
To boost Australia’s film industry, the Government will allocate $5.2 million over two years (from 2026-27) to support large-scale productions. The key change involves lowering the minimum qualifying Australian production expenditure for the Location Tax Offset:
- Feature films will now qualify with a minimum budget of $15 million (previously $20 million).
- The funding will gradually decrease after 2027, so early applications are encouraged.
Implications for Film Production Companies
- More international and domestic productions may now qualify for tax incentives.
- Companies planning large-scale productions in Australia should factor in the reduced expenditure threshold when budgeting.
How Boa & Co. Can Help
At Boa & Co. Chartered Accountants, we help businesses navigate corporate tax changes and maximize their tax incentives. Whether you’re reviewing your R&D eligibility or looking to benefit from film industry tax offsets, our expert advisors can guide you through the process.
Call us at 1300 952 286, email [email protected], or visit www.boanco.com.au for a consultation.