Terms of Trade (as at December 2012) | Print |

Applications for funding

All applications are subject to finance being available.

 

A completed application form and any other requested items must be supplied. Incomplete applications cannot be processed.

In general, four (4) - six (6) weeks should be allowed for development or production applications; time is required for assessment and Board consideration where approvals are not given under delegation. All applications requiring Board approval (and no external assessments) must be received no less than three (3) weeks prior to the next Board meeting; a schedule of cut-off dates is posted on the Screen Queensland website.

Applications can be made as a hard copy or electronically.

Where there are deadlines for programmes, late applications will not be accepted.

Where an applicant intends to apply for production funding and/or RFFF loan funding for one project, applications for all need to be submitted at the same time on one application form that demonstrates how they all fit into the finance plan. In addition, if the payroll tax rebate forms part of the finance plan, the application should reflect this. [Claims for payroll tax rebates are made following completion of production.]

Screen Queensland uses one standard application form that can be downloaded by visiting www.screenqueensland.com.au.

Who may apply?

Queensland based practitioners and independent production companies or other production companies substantially engaging with Queensland based practitioners. Industry organisations and independent events may apply to the Screen Culture Funding Programme.

 

The following applications are NOT eligible:

1. Projects that have been rejected and have not substantially changed;

2. Applications for retrospective funding;

3. Applications for commercial videos, advertisements, current affairs, sport, interstitials, educational or training programmes;

4. Applications from secondary students and tertiary undergraduates; and

Applications for school or tertiary course work.

Applicant eligibility

In their dealings with Screen Queensland, applicants and recipients of funding must always:

  • act in good faith;
  • exhibit the highest levels of propriety and high standards of probity;
  • be open and honest; and
  • not mislead or deceive Screen Queensland by act or omission.

In relation to third parties involved in funded projects, applicants and recipients of funding must always:

  • act fairly and reasonably in relation to third parties;
  • make payments to third parties when due; and
  • respect the rights of third parties, including intellectual property rights.

Failure to adhere to all these standards reflects on Screen Queensland and the reputation of the industry in the State and, where part of a course of conduct over time or projects, may render applicants ineligible to apply for further funding.

Where an applicant is in default of any contractual agreement with Screen Queensland:

  • Screen Queensland will work with the applicant to rectify the default; and
  • Screen Queensland expects the applicant to remain in open communication with Screen Queensland until the default is resolved.

 

Acceptable formats

Scripts and treatments not adhering to industry norms in relation to format, length and presentation will be returned to the applicant unassessed. Submitted scripts should have scene numbers included before assessment. Screen Queensland will not accept a feature film application in excess of 120 pages.

Chain of title

The applicant must be a copyright holder or have an option to acquire the rights in any and all works on which the project is based.

Applicants with options over submitted projects must have available not less than two (2) years of the option period from the date a successful application is contracted.

Initial options or rights payments must be paid by the applicant or deferred. Screen Queensland may pay for options or rights payments for further terms where such payment is a line item in the budget of a development investment by Screen Queensland.

Copies of options and agreements must be supplied with the application, and an application cannot be assessed until all such documentation has been supplied

Finance from other sources

Applications for finance or funding made to any other source in relation to the project must be disclosed. Where other finance has been obtained, the conditions attached to that finance must also be provided.

Repayment of development investment

All development investment plus the premium must be repaid no later than commencement of principal photography. Late payments may attract interest.

Development investment will not be 'rolled over' into production funding. Production funding must be applied for according to the terms of trade


Marketing Eligibility

a) For the purposes of the marketing grant, Queensland only practitioners who are fulltime residents will be eligible and in certain circumstances Screen Queensland may require proof of residence. (See definition of bona fide Queenslander on page 6 more more details).

b) If a project has been unsuccessful under other Screen Queensland funded programmes, then it is ineligible to be nominated as a lead project for the marketing grant application. 

 

Marketing grants for teams

If a team is travelling to the same market/event, the application will be assessed according to the exceptional circumstances demonstrated by the team in the supporting documents attached to the application. A team may comprise one or more of the producers on a project or one or more of the creative team of a project. If a team is applying then they should submit one application and list all names of intended travellers.

Market attachment

Where programmes require the applicant to have market attachments, this may include any of licences, presales, distribution guarantees or advances provided by reputable (national or international) distribution companies.


Legal fees and costs

Applicants will be responsible for their own legal and other costs relating to applications and supporting material as well as documentation with Screen Queensland.

Screen Queensland does not charge fees other than in relation to the Revolving Film Finance Fund where the fees are:
  • A non-refundable application fee of $220 payable at the time of application;
  • Interest and administration fees as follows:

o Interest is charged at one half of the Reuters Monitor System reference rate for 90 day bank bills on the date of each respective drawdown; interest is deducted in advance from each drawdown of the loan at the time of drawdown. As the interest rate is subject to change based on prevailing market interest rates, applicants should contact Screen Queensland to determine the actual cost of the loan.

o Administration fees are deducted in one instalment from the first drawdown of the loan and calculated so that the total charge, when added to the interest rate, will be 8% annually of the total loan.

Applicants are also required to pay applicable stamp duties on the loan and security documentation.

Review of  programmes

Funding programmes are reviewed annually in December each year.


Indigenous projects

Applications involving or dealing with Aboriginal or Torres Strait Islander material should include written permission from the relevant indigenous group.

An Aboriginal and Torres Strait Islander Indigenous material consultant may be appointed by Screen Queensland to provide an assessment of the application. The assessment will determine whether appropriate permissions have been obtained and whether the use of the indigenous material is appropriate and acceptable to the relevant indigenous group and the indigenous community at large.


Assessment and decision making process

An email outlining the internal Screen Queensland assessment process is automatically sent to all applicants upon receipt of their application.  Applications are checked for eligibility and, if eligible and complete, are assigned to a Screen Queensland Project Manager.  Ineligible or incomplete applications cannot be processed.

Where appropriate, Screen Queensland seeks assessments from industry professionals.  In all cases assessments inform but do not determine funding decisions which are made by Screen Queensland management or the Board, which makes decisions based on management recommendations.  Assessments are provided to the applicant for a response.

Interviews may be conducted if appropriate.

Screen Queensland requires all budgets for production to include sufficient allowances for post-production.

All funding decisions are based on the assessment criteria for each programme and an assessment of whether the application meets Screen Queensland’s objectives and strategies.

Successful applications will receive formal written notification.  No funding is approved verbally.

Screen Queensland has the current financial delegations:

  • Senior Managers – up to $10,000;
  • Head of Development and Production – up to $40,000;
  • CEO – up to $60,000;
  • Board - in excess of $60,000.

The Screen Queensland Board meets each month (except January).  All members of the Screen Queensland Board are required to declare any conflict of interest and, in those cases, absent themselves from the decision making process.

Unsuccessful applications

Unsuccessful applications will receive formal notification and an invitation to discuss the application with the Project Manager in order to provide feedback and assist professional and project development.


Contracting and Screen Queensland entitlements

All funding decisions are subject to contract.  Contracting can be expected to take up to three (3) weeks (where Screen Queensland is the sole or lead funder) after the funding decision, depending on the nature of the commitment and the number of parties involved.  Expenditure incurred prior to contracting is the responsibility of the applicant.

Screen Queensland production investment is recouped pro rata pari passu with all other investors. Screen Queensland uses standard form contracts and a copy of the relevant pro forma may be obtained on request.
Screen Queensland will require an interest in the copyright of projects that it funds at development stage at a flat rate of 10% and a share of net profits calculated as follows:  For production investment, Screen Queensland’s share of copyright and net profit will be commensurate with its investment. 


Completion guarantees

Generally, Screen Queensland requires a completion guarantee for projects receiving production investment.

Screen Queensland may waive this requirement:

  • where Screen Australia is also contributing financially to a project and waives the requirement of a Completion Guarantor, Screen Queensland will also waive the requirement where we can be satisfied that the applicant can guarantee delivery;
  • where the total budget for the project is under $250,000 and:
  • the production team is ‘experienced’;
  • the applicant can demonstrate that it has the required funds, insurances and/or an arrangement with a broadcaster that ensures any unforeseen overages can be met to deliver a satisfactory project;
  • the nature of the subject matter means there is limited risk in the project being completed on time and on budget;
  • the nature of the project means key creatives and/or core subject matter can be replaced with alternatives if necessary;
  • a qualified and approved person is employed at the applicant’s expense to oversee the budget expenditure.

Regardless of the above, Screen Queensland retains the right to require a completion guarantee if it identifies any risk it believes will be alleviated by having a completion guarantee.

In all instances where Screen Queensland is providing a loan through its RFFF facility a completion guarantee will be required.


Collection agent

Generally, Screen Queensland requires a collection agent for projects receiving production investment.


Expenditure of Screen Queensland funds

All funding approvals are conditional on the applicant and Screen Queensland entering a contract on satisfactory terms.

Offers of funding will remain open for three (3) months from the date of approval, during which time contracting must commence and contracts concluded within a further three (3) months.

If contracting does not commence, the approval will lapse and funds re-allocated.  Applicants may re-apply for funding where an approval has lapsed.

Screen Queensland may extend the time for commencing/concluding contracts for a reasonable period in the circumstances and on a case by case basis.

Funds must, generally, be drawn down under contracts within 12 months from the date of the contract.  Any funds not drawn down will be re-allocated by Screen Queensland.  This time may be extended where required by the project.


Production Incentives claims

Production Incentives are applied for and approved prior to commencement of pre-production.  A claim is then made after completion of the project.  All claims must be received by Screen Queensland together with all relevant paperwork within twelve (12) months from the date of completion of the project.

Note: for State Payroll Tax Rebates there are no applications, only claims.

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, producer's, 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 good 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 in 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.

Definition of related companies

A company is related to an applicant company if it is a subsidiary or holding company of that applicant company or where one or more of the directors or shareholders is common to both companies.


Definition of bona fide Queenslander:

Bona fide Queensland residents are:

  1. (a)individuals who are currently enrolled on the Queensland electoral roll and have been for a minimum of six (6) months; and
  2. (b)who can provide proof of residency in Queensland for the same period, e.g. rental agreement, power and phone bills; or
  3. (c)individuals who have been bona fide Queensland residents within the previous three years and are now resuming Queensland residency by changing their status on the electoral roll; or, if not,
  4. (d)individuals who can substantiate proof of residency in Queensland for at least six (6) months prior to the production commencing; or, if not,
  5. (e)individuals who sign a statement to the effect “I warrant that I have resided in Queensland for a minimum of six months prior to my engagement on [name of production] at the following address/“; and
  6. (f)where salaries are paid by the production company and not through production company suppliers or contracting firms.
  7. (g)In certain circumstances Screen Queensland may require proof of Queensland residency.

For the purposes of the marketing grant, Queensland only practitioners who are fulltime residents will be eligible.

RFFF Draw Downs

RFFF funds must be drawn down by the contracted draw down dates.  A pre-condition of any draw down is the receipt of an up-to-date QAPE cost report.  Any funds not drawn within one month of the contracted dates will be subject to interest penalties (as Screen Queensland incurs interest on these loan funds).   Approvals are made subject to sufficient capacity in the fund being available on a cashflow basis.

Contracts for RFFF approvals will reflect this condition so that there is no obligation to make a payment until the facility has been replenished by repayments at least equal to the amount to be drawn down. Approvals are based on cashflow projections of the fund being sufficient to meet the cashflow needs and drawdowns of the production.

RFFF

Completion guarantees will be required for projects receiving loans from the RFFF.  For loans made on the security of the Producer Offset, the amount of the loan will, generally, not exceed the amount guaranteed.

For projects receiving a loan from the RFFF on the security of the Producer Offset, Screen Queensland will require:

(a)   an opinion from a qualified independent third party as to the QAPE and that the fees for any facilities and services provided by non-arms length parties are provided at commercial rates (including identification of those fees); and

(b)   where an investment in the project is contributed by a related party of the production company, an opinion from the solicitor for the production company that the terms of the investment will not prejudice any production expenditure from qualifying as QAPE.


RFFF Repayment

Applicants will be required to carefully consider the date they propose for repayment of the loan. Extensions to the repayment date must be formally requested in writing before the due date. Additional interest will apply for the first three months’ extension and penalty interest will apply thereafter.


ISAN

All projects receiving Screen Queensland investment will require an ISAN (International Standard Audiovisual Number) for delivery.  Information about and applications for ISANs are available at www.australasia-isan.org.


Delivery items

All applicants in receipt of funding will be required to fulfil delivery in satisfaction of the contract, including audits.  Any applicants failing to deliver according to the contract will be considered in default which will prevent future applications.

Screen Queensland periodically reviews its delivery requirements, particularly as technology changes.  The pro forma is available on the Screen Queensland website.


Resolution of deadlocks on production

The creative team will need an agreement or agreements between them and/or the production company on the mechanism to resolve deadlocks during production.


Payments by Screen Queensland

Screen Queensland will make payments electronically and between 7 – 14 days from receipt of invoice, although minor delays may be experienced at certain times.


Payments to Screen Queensland

Where Screen Queensland issues invoices, payment is to be made within 7 days.


GST

Applicants must have an ABN and be registered for GST.


Service charter

Applicants and prospective applicants can expect professional, respectful and courteous service from Screen Queensland staff.  A copy of the Screen Queensland Service Charter is available from the Screen Queensland website.


Changes to terms of trade

Screen Queensland reserves the right to vary any of the terms or conditions and will provide notice of any changes on the website.

Screen Queensland may contact and discuss a project with all parties associated with an application, including but not limited to the broadcasters, distributors, sales agents and/or funding bodies approached by the applicant, and advise the applicant of these discussions.


More information

Please contact Screen Queensland by telephoning (07) 32480 500

 

 

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