Co-Production films are “Joint Investing and Copyright Co-Production Films” and meet the conditions set out in the official China/Australia Film Co-Production Treaty
Box Office Returns in Mainland China
Chinese producers of official co-productions can expect the same percentage of the box office as they would receive from their domestic films. In contrast, due to SAPPFRT regulations, unofficial co-productions return lower percentages of the back end to producers.
Distribution in Mainland China
Movies made as official treaty co-productions are exempt from the quotas for foreign films that are authorized for distribution in China.
Access to Australian Producer Offset Rebate
Official co-productions are allowed to access the Producer Offset Rebate without meeting the SAC (Significant Australian Content) test. The rebate is calculated at 40% of QAPE (Qualifying Australian Production Expenditure). Additional screen incentives and grants may be available to filmmakers through Australian state, territory and local government screen agencies. The more a production spends in Australia, the higher the rebate that production receives.
Each of the contracting parties shall provide, in accordance with their respective legislation, temporary admission, free of import duties and taxes, of cinematographic equipment for the making of Joint Investing and Copyright Co-Production Films.
Each of the contracting parties shall permit the nationals and residents of the other country and citizens of the country of any third co-producer to enter and remain in Australia or China as the case may be, for the purpose of making or exploiting a Joint Investing and Copyright Co-Production Film, subject to the requirement that they comply with the relevant laws relating to entry and stay.