Australia will use a multi-million honeypot and its "relative success" in managing the coronavirus pandemic attempt to lure more big studios to film blockbuster movies in Australia.
Prime Minister Scott Morrison and Arts Minister Paul Fletcher will announce on Friday its location screen incentive would be boosted by $400 million and extended over seven years.
It would mean an effective increase in the tax offset rate from 16.5 per cent to 30 per cent for eligible large budget international productions that film in Australia.
Mr Fletcher said it would create a pipeline of productions in Australia and help the industry recover from the COVID-19 downturn. Thousands of jobs would flow to carpenters, lighting technicians, local actors, set designers, extras, crews and special effects experts as a result, Mr Morrison said.
"Behind these projects are thousands of workers that build and light the stages, that feed, house and cater for the huge cast and crew and that bring the productions to life," Mr Morrison said.
"This is backing thousands of Australians who make their living working in front of the camera and behind the scenes in the creative economy."
The $400 million investment is expected to leverage more than $3 billion in foreign investment and create 8000 jobs.
The incentive was introduced in 2018, offering $140 million in incentives over four years, starting from July 2019. So far, the government has announced $123 million to 10 productions.
However it is unclear when filming would be able to commence due to border closures and social distancing restrictions.
Marvel film, Shang-Chi and the Legend of the Ten Rings, which was being filmed at Fox Studios and received $24.1 million in location incentives, was forced to shut down production earlier in the year due to coronavirus restrictions. This has delayed filming for Thor: Love and Thunder, which was to start shooting in September and also received $24.1 million under the scheme.
It comes after the federal government was criticised for targeting its $250 million stimulus package for Australia's arts and creative industries towards major players.
The support package includes $75 million in seed funding for production companies to put on new festivals, concerts, tours and events as social distancing restrictions ease. There will also be $90 million worth of "Show Starter" concessional loans available, to help fund new productions and events.
Around one in four people employed in the arts and recreation industry have lost their job since the coronavirus restrictions came into force nearly four months ago, making it among the hardest hit sectors.