It is significantly cheaper – 7.5% cheaper, to be exact – to shoot a Hollywood picture in Australia than Canada, according to a new study from Down Under.

Conducted by Moneypenny Business and Taxation Services at the behest of the Aussie feds, the study compared the cost of shooting a US$25-million runaway feature in Sydney and Vancouver, taking into account federal and regional tax breaks, labor costs and exchange rates.

The hypothetical film would cost US$19.6 million to make in the Aussie capital, as opposed to US$21.2 million in B.C.

‘This report counters the myth that it is cheaper for U.S. filmmakers to make films in Canada, and highlights the benefits of making higher-budget films in Australia,’ says Senator Rod Kemp, the Aussie minister of arts and sport, in a statement.

Tax credits would cover some 10% of the Australian budget, compared to 7% here. Oz offers a 12.5% tax offset on film goods, services and facilities – regardless of origin or nationality – plus a 1.75% break on labor costs in New South Wales through that state’s Footloose Production Attraction Fund. In comparison, B.C.’s 11% resident labor break was added to Ottawa’s 16% production services credit.

‘Once a project qualifies for the Australian offset, the larger the budget, the greater the advantage over Canada,’ adds Kemp.

Both the Canadian and Aussie dollars have risen against the U.S. greenback over the past 12 months, threatening service production in both countries. The loonie is up 12% since this time last year, while the Oz dollar has gained 14%.

The study, ominously titled Final Destination, admits that ‘below-the-line’ labor costs are approximately 12% higher in Australia, but suggests that this is offset by the exchange rate and lower fringe percentages.

It also notes that Canada is better for TV shoots for official coproductions, owing to more favorable tax breaks, and recommends a boost to Aussie fed and state percentages.

Critics here wonder if the study was sufficiently thorough. B.C. has other tax credits on the books that were not taken into account. ‘The calculations look correct, but we’re not sure about some of their assumptions,’ says B.C. film commissioner Susan Croome. The eight-page summary released to the public doesn’t have enough information to accurately judge the report, she says.