Budget blockbuster: Search begins for second film studio in Sydney

This is part of a $380 million package in the 2025-26 Budget to support the world-leading NSW screen and digital games sector and deliver much-needed new production space over coming years.

This investment in NSW’s screen and digital games sector is part of the Government’s plan to grow more local jobs and secure a bright future for the industry.

With Australian storytelling becoming a bigger export earner by the year, there is a critical shortage of production space, with the only film studio in Sydney being Disney Studios Australia at Moore Park.

Since 2021, studio films made in Sydney include Thor: Love & Thunder, Mad Max Furiosa, The Fall Guy, Kingdom of the Planet of the Apes and I Know What You Did Last Summer.

The package also includes $280 million for programs to support the sector, including the Made in NSW fund and Post, Digital and Visual Effects and Digital Games Rebate programs.

This investment ensures the continuation of these successful programs supporting productions, post-production and digital effects for projects such as the Artful Dodger, Anyone But You and Furiosa: a Mad Max Saga.

Complementing these investments, an overhaul of the regulatory framework recognises the economic contribution the screen and digital games sector makes across NSW and reduces red tape. This includes tripling the time filming can occur on private land without a development approval. These lighter-touch permissions will reduce the administrative burden on both councils and productions.

Minister for the Arts John Graham said:

“NSW is the home of the screen industry in Australia. Our screen sector continues to wow the world with our storytelling. Their work shows the world who we are – and helps us understand who we are.

“The Minns Labor Government is backing the sector and planning for growth.

“The industry has been calling for a second studio space in Sydney to make sure local producers aren't being squeezed out by the big overseas productions. This $100 million capital fund will pave the way for the delivery of this studio."

NSW Treasurer Daniel Mookhey said:

“The screen and digital games sector generates $1.2 billion into our state economy and supports over 13,500 jobs.

“By supporting the sector, we are acting to attract investment, stimulate job creation and boost economic growth.

“The $100 million capital fund secures the future for the NSW screen sector, continuing the Minns Labor Government’s plan to build a better NSW.”

Background

• A market sounding of potential screen studio locations has already been undertaken in response to industry demand to identify suitable sites for screen infrastructure and production spaces.
• The investment in this space is subject to businesss case approval.

Additional information on regulatory reforms:

• Changes to the Codes SEPP extends the period that productions can film without a Development Application from 30 days to 90 days.
• A new Screen and Digital Games Industries Act:  expanding the remit of Screen NSW to support growth of the state’s digital games industry by establishing a new Screen and Digital Games Industries Advisory Committee with a dedicated digital games member. The new Committee will also include a member from regional NSW.
• A Film Friendly Accreditation program will recognise and back local councils who are supporting screen production in their areas.
• Changes to Local Government Act: reducing red tape, ensuring that government approval is timely, fees are reasonable, and the default response is to support the production unless there are specific reasons not to – the 'yes unless' clause.
• A new NSW Local Government Filming Protocol and Premier’s Memorandum: with a combined release of the Premier’s Memorandum (applying to NSW Government agencies), and the Protocol (applying to NSW councils), and introduction of accreditation for screen friendly councils, the Government is ensuring screen and digital games production is supported across state and local government.