However, this group includes a number of films, such as Moulin Rouge (2001) and Happy Feet (2006), that were substantially financed by Hollywood studios.
Meanwhile, TV drama has received about half of its financing from the industry itself and about 15% from government sources, while foreign investment has also been significant, reaching a peak of 49% in 1999/2000.
The Australian Film Commission (AFC), once the government's main vehicle for production funding, was now focussed primarily on development, marketing and research activities.
The FLIC scheme was introduced in 1999 and renewed in 2005, but no further licences will be granted due to the introduction of the Producer Offset in 2007 (see below).
A refundable film tax offset (RFTO), designed to attract large-budget overseas productions to shoot in Australia, was introduced in 2001.
The state agencies, listed by their titles as of 2022[update], are: The Australian Screen Production Incentive was introduced in 2007 to replace all the previous schemes.
To be eligible for the producer offset, feature films require a guaranteed cinema release and QAPE in excess of $1m.
The 2004/05 year saw a further peak, owing to the production of the Australian feature film Jindabyne, which was majority funded by private investors.
Financing from overseas sources has supported a number of feature films with internationally-known Australian directors.
Examples include George Miller’s Happy Feet (financed by Warner Bros.) and Babe: Pig in the City (Universal Studios), Baz Luhrmann’s Moulin Rouge!
(Fox), and European-financed films such as Rolf de Heer’s Dance Me to My Song (Italy) and Paul Cox’s Innocence (Netherlands).
The most common partners for Australian feature films have been (in descending order) the United Kingdom, Canada, France and New Zealand.