The AFC introduced a "Directions" plan to guide operations of ScreenSound Australia, before it was disputed and revised in 2006 upon the change of government.

Screen Australia commenced operation in July 2008 and overtook the Commission's role supporting and investing in Australian film and other media.

[citation needed] The Commission merged with Australia's federal film agencies in 2008, bringing the cease in its operations.

The Commission was merged with ScreenSound under the Howard government which was speculated by news outlets as a move to undermine cultural industries in Australia.

[6] The Australian Film Commission Amendment Act 2003 outlined the transfer of contractual rights and obligations under ScreenSound to the AFC to accommodate the reorganisation.

[7] On 12 January 2006, Kim Dalton departed from his CEO position at the Commission to the head of television at the Australian Broadcasting Corporation.

The Australian Federal Election in November 2007 saw a changeover of government to the Labor Party, but support legislation for the merge was approved on 23 March 2008.

[7] On 20 February 2008,[8] Peter Garrett, the new Minister for Arts from the changeover, introduced the Screen Australia Bill 2008, which allowed the NFSA to move freely under its body as it was de-merged from the Commission.

[10] For example, the development and production of the National Interest Program documentaries, which were initially produced by Film Australia Ltd, resulted from the merger.

Screen Australia also took over the Commission’s role in supporting Australian content in films, focusing on programs with high levels of artistic and cultural qualities.

[3] The Commission has also collaborated with the agencies Australia Council for the Arts and the Australian Film Television and Radio School (AFTRS) in support of the rising use of internet and technological innovation in the late 1990s and early 2000s.

[12] From the mid-1950s, with the rise of television, until the 1980s, documentary production of Australian life was supported by federal agencies such as the Commission.

[10] Screen Australia overtook the Commission's responsibilities in supporting films and television programs with Australian content, which were determined by the subject matter, location of production, nationalities of contributors to the making of the film, and potential to be significant Australian content, as outlined in the Screen Australia 2008 Bill.

Stuff-Art was devised to foster innovative and online film entertainment, encouraging participation from artists, filmmakers and interactive producers.

[12] In September 2001, the AFC directed investment into the program for the development of broadband content worth approximately $2.1 million.

The database also enabled users to locate "Australian-made feature films, documentaries, television dramas, and interactive resources" which were curated by Australians.

[19] In the 1970s, the government assisted the film industry indirectly through tax exemptions and write-offs to private investors.

Members of the AFC were appointed on part-time basis, and to ensure flexible and efficient day-to-day operation a general manager was elected.

The American market received Australian film with depictions of outback landscapes, and historical settings as impressions of Australia.

[10] In 1978, AFC moved its North American office from its original location in New York City to Los Angeles.