Using Tax Incentives to Encourage Investment in the Australian Film Industry

In light of the recent adoption fo Film Licensed Investment Companies by the Commonweatlh Government, this article examines the operation and effect tax incentives have had on indirect investment in the Australian film industry. The article looks at whether there is a need for tax incentives, the policy justifications for providing tax incentives and which type of incentive is most effective. This article argues for expansion of tax incentives to encourage private investment in the Australian Film Industry. An increase in investment may well promote the quality, creativity and commercial viability of Australian Films.