The Gonski review of the Australian film industry aimed at addressing structural problems in the industry, in particular, the extent to which it is marginalised through competition with the mainstream Hollywood film industry, its reliance on government funding to get film projects off the ground and the perceived need to make films that reflect and are relevant to Australian culture.
Australia is home to one of the world’s oldest film industries, dating from the 1890s and boasting one of the largest cinema-going audiences in the world (in per capita terms). Despite this, the Australian film industry had been in abeyance until the 1970s when Australian governments initiated various funding schemes to encourage film production, especially for films that promoted national culture. Government initiated film organisations have included state bodies (e.g. Film Victoria, New South Wales Film and Television Office, Pacific Film and Television Commission, ScreenWest and the South Australia Film Corporation) as well as a number of federal bodies: the Australian Film Commission (AFC) (1975-present), Australian Film Institute (AFI) (1958-present), the Australian Film Finance Corporation (FFC)(1988-present), Film Australia, and the National Film and Sound Archive (1984-present).
During the 1980s, the federal government introduced the 10BA Scheme, which was a generous tax concession incentive, designed to stimulate film investment in film production. Despite a flurry of films, the scheme did not translate into better box office receipts or quality films and, despite various adjustments to the scheme, it was eventually replaced by investment mechanisms administered by the FCC.
Due to continued debate about the viability of the industry, David Gonski was commissioned to inquire into the Australian film industry and delivered his report in 1997. He calculated that the industry contributed $1.2 billion annually to the Australian economy and employed over 20,000 people. Gonski’s approach was to downplay the ‘screen culture’ approach of film as a building block of national identity and examine its business basis and export potential. The release of the report produced mixed reactions. Despite concern about cutting government funding, existing arrangements persisted. A new initiative flowing from the Gonski report involved the establishment of a framework for the formation of Film Licensed Investment Companies (FLICs), a measure that conferred special status on a few film production companies to invest in innovative projects, drawing on government and private funding.
These arrangements were strengthened in 2001 when then Minister for Communications, Information Technology and the Arts announced new measures for supporting the film industry. These included:
a new production incentive in the form of a refundable tax offset;
increased funding for the FCC;
new funding for SBS Independent to commission multicultural drama and documentaries;
extra funding for Film Australia to fund its community service obligations in the form of films in the national interest;
increased funding for digital and broadband services, development and education; and
incentives to attract off-shore productions in Australia.
These changes were perceived by the critics within the film industry as shoring up the larger and more commercial players while ignoring the needs of independent and experimental producers.