|Queensland Production Expenditure (QPE)|
Definition of Queensland Production Expenditure (QPE)
1. For the purpose of the Production Incentives programme:
the definition of QPE will mirror where possible the current definition at the relevant time of Qualifying Australian Production Expenditure (QAPE) for the purposes of the Federal Producer Offset, as if the reference to “Australian” were a reference to “Queensland” and with any necessary adjustments to achieve that purpose. The intention is to include all expenditure made in Queensland and to bona fide Queensland residents.
2. Queensland Production Expenditure (QPE) includes:
(a) payroll subject to Queensland payroll tax;
(b) Queensland workers’ compensation payments;
(c) fringe benefits tax relating to benefits provided in Queensland and Queensland payroll tax;
(d) above the line payments (i.e. director’s, producers’, lead actors’ fees, etc.) made to bona fide Queensland residents, notwithstanding that the payment may have been made, on their behalf, to interstate based agents;
(e) payments to a supplier of goods and services whose principal place of business is in Queensland. Suppliers include independent contractors who are not subject to Queensland payroll tax.
(f) payments to a supplier of goods and services which, although its principal place of business is outside Queensland, has an office or branch in Queensland which is supplying the goods or service;
(g) services include post-production services undertaken in Queensland and provided by a Queensland supplier or interstate where provided by a Queensland supplier;
(h) fees and charges relating to the use of land within Queensland;
(i) international or interstate travel that is booked through a Queensland supplier of services. The two-week rule for non-cast members which is applied to the QAPE definition in the Federal Producer Offset guidelines applies, that is, the person must spend a minimum of 2 weeks on Queensland following arrival;
(j) freight charges where booked through a Queensland supplier of services.
3. Exclusions to QPE:
(a) goods or services which are sourced from outside Queensland from a non-Queensland supplier, even though they are used in the production of the project in Queensland;
(b) Screen Queensland reserves the right to exclude customary above-the-line budget payments and Screen Queensland funded crew positions from eligibility.
4. Depreciating assets:
Generally, production expenditure relating to the depreciation cost of depreciating assets qualifies as QPE to the extent that the expenditure is attributable to depreciating assets provided by a Queensland supplier. If the asset is sold or scrapped at the end of the production the effective life ends when it is sold or scrapped.
5. Currency exchange:
Where production expenditure is incurred in foreign currencies, the exchange rate will be the RBA rate fixed as at the first day of principal photography.
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