Mrs ELSON (11:02 AM) —I am very pleased to rise in support of the Taxation Laws Amendment (Film Incentives) Bill 2002, which creates a refundable tax offset for major film production in Australia. Essentially this bill will provide a 12.5 per cent rebate against qualifying Australian expenditure for productions that spend a minimum of $15 million here. For expenditure of up to $50 million, 70 per cent of the total budget needs to be spent here in Australia. For expenditure over that amount, the 70 per cent requirement does not apply. This rebate is only part of our government's ongoing commitment to support the growing Australian film industry. In fact, it comes on top of a package of over $92 million in funding announced in September last year, which included additional funding for the Australian Film Commission; the Australian Film, Television and Radio School; SBS Independent; Ausfilm; and the Film Industry Broadband Resources Enterprise. Our package recognises that, as well as attracting investment from overseas, we need to continue to support and foster our unique and successful local film and television production.

Australia is currently enjoying an unprecedented worldwide profile in the entertainment industry. The current individual success of stars such as Nicole Kidman, Russell Crowe, Hugh Jackman, Heath Ledger, Rachael Griffiths, Sarah Wynter, Eric Bana and Naomi Watts—I list only a few but the list goes on and on—builds on the collective Australian reputation for originality, talent, flair and vitality, a reputation built over many years through a variety of films and, of course, our highly successful directors, cinematographers, costume designers, composers, editors and animators. There is a palpable pride in the Australian community in the success our countrymen and women have enjoyed in this highly competitive field.

Evenings such as the recent Golden Globe awards, when Australia won a swag of awards, were hardly dreamt of just over 10 years ago and were unimaginable 20 years ago. The community does have a right to have collective pride. They have a stake in this international success, because successive Australian governments have seen fit to support the local film industry. Their tax dollars have helped build its reputation and, through this bill and many other measures, their tax dollars still keep securing a growing share of the entertainment industry dollar. Of course, it is very much a two-way street.

I am delighted to remind the House that in my own corner of south-east Queensland, home to the wonderful Movie World complex and the Warner Brothers studios as well as several other production companies, we have our own Hollywood in the Gold Coast-Brisbane corridor which, from the hinterland to the beaches, is also full of fabulous locations as well as first-class facilities and production venues. In fact, since 1991 film production has had more than a $2 billion economic impact on Queensland. In the last financial year, eight feature films, 22 documentaries, three short films, nine telemovies, six television series and one animation were produced in Queensland, with production expenditure totalling $156 million. Film production employs the equivalent of 4,500 people full time in Queensland alone.

I want to recognise in this House today the ongoing support that the Queensland government provide for the film industry through their dedicated people at the Pacific Film and Television Commission as well as through a range of tax incentives and rebates. As we are all very well aware, there are many and varied demands on government resources and we must strike the right balance between a handout and a supportive hand-up. Like our tourist industry, the entertainment industry is relatively new, with huge growth potential. It is a capital rich industry of the future. It is certainly an industry that needs to be cultivated and encouraged, just as we support our traditional primary industries, in a variety of ways.

The Howard government is ever mindful of our need to take responsible decisions in the national interest. It is the yardstick against which all of our decisions are made: is this good for Australia's best interest? The criteria for this 12.5 per cent tax offset, particularly the minimum Australian expenditure of $15 million, have been designed to maximise the flow of benefits to local production industries through encouraging offshore producers to spend more in Australia on Australian casts, crew, post production facilities and other services.

I note that the payment is restricted to feature films, miniseries and telemovies. It has been put to me that the production of overseas episodic series ought also to be considered for the tax offset. It is the case that series television sourced from offshore has been a very significant part of Queensland's production industry. These series have an average production shoot of between eight and 10 months and therefore provide many jobs for a longer period than is the case for most feature films. Series television production has assisted the development of Australia's film industry through long-term training for young people. In my own electorate the very successful Los Angeles based Coote/Hayes Productions set up their offices in 1998. They have produced two series of both Beastmaster and The Lost World fantasy television series, filmed and produced in Queensland, amongst other productions. Coote/Hayes Productions alone has had an estimated economic impact of $434 million for Queensland.

I would certainly urge the minister to consider the value of offshore series production to our local industry and, once this tax offset is in place, to look at extending eligibility to include this sector of the industry. As I said, it is a balancing act and this government takes our responsibility to taxpayers very seriously.

In this bill, as with our integrated film industry package announced last September, we want to strike the right balance to allow the wonderful qualities Australia has to offer the entertainment industry to be recognised and to grow and prosper. It must be remembered that for every hugely successful actor, director or production company there are hundreds of smaller ones, many struggling to perfect their craft in order not just to entertain but also to add to our nation's culture and to better our understanding of ourselves. That is one of the truly special things about the Australian film industry and much of our television industry. It has not been founded on sticking to formula or churning out big budget box office successes. It has largely been founded on a celebration and understanding of what it is to be Australian—our own unique perspective on the world.

The development of Australian film and television has undoubtedly fuelled and been fuelled by our growing confidence on the world stage. There is no doubt too that our film industry has helped and continues to help our tourist industry. For a nation so geographically isolated, our film industry has given the world a better understanding and appreciation of who we are and the values we hold dear. It is clear that people overseas like what they see. With that foot in the door we have a wonderful opportunity to sell to overseas companies the benefits of filming and producing in Australia. It is a unique and special export that directly brings dollars here in terms of not only the money that production generates but also, through the gorgeous locations that we have to offer, audiences around the world are being attracted to visit, thus bolstering our growing tourist industry. It really is a win-win situation for us as a nation, and I believe the government's support of film production is a sensible, practical approach to furthering our local industry and maximising the benefits as a nation. It is certainly an exciting time for the Australian film industry and many Australians employed in film and television production.

I am very proud to have such a substantial part of our production industry located in my electorate, and I am proud to be part of a government that is committed to delivering practical support to help attract large overseas productions and to support local productions as well. I lend my support to this bill and look forward to discussing with the minister the potential for the further application of this 12.5 per cent tax offset to the production of offshore television series here in Australia. I would also like to take this opportunity to wish all the Aussies the very best for the Academy Awards this week. I am sure we can look forward to many years of Australian success in the film industry and to attracting more and more big budget overseas films to our production industry.