Image: NSW is promising a blockbuster in its upcoming budget with $100 million earmarked to build a state-of-the-art studio for Hollywood hits and local films. in Sydney, NSW Arts Minister John Graham NSW Treasurer Daniel Mookhey Actress Claudia Karvan. Sunday, June 15, 2025. Photo: AAP/Farid Farid
Sydney’s screen industry is set for a major boost, with the NSW Government unveiling a $380 million package aimed at bolstering film and digital games sectors. A significant portion—$100 million—is earmarked to explore the development of a second major film studio in the city.
The funding, announced ahead of the 2025–26 state budget, is a response to growing concerns that local productions are being sidelined due to limited studio space.
“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,” said Graham. “The major film studio in Sydney is the Disney Studios at Moore Park, and it’s often full. There is big demand.”
Currently, Disney Studios Australia at Moore Park is the sole major film studio in Sydney, and is often booked out by large international projects. Films that have been shot there 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.
Potential sites for the new studio are under consideration, with Oran Park in Sydney’s south-west among the locations being discussed. The government plans to collaborate with industry stakeholders and the private sector to determine the most suitable site.
Package to ‘cut red tape’, make Sydney more attractive to film studio
In a press conference at the Sydney Film Festival, Minister Graham told media that investment was part of a comprehensive approach by the government to make NSW an attractive place for film studios to create from, and spoke about the arts package also prioritising “cutting red tape”, including tripling the time studios could film on private land without needing a development application, as well as working with local councils to help make them hotspots for on-location filming.
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.
“We want Australia to be an attractive place to have these films made. It creates a lot of employment, but it also creates Australian stories as we build a long-term screen industry in NSW,” said Graham. “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 screen sector is a significant contributor to the state’s economy, with feature film production spending in NSW accounting for 21 percent of Australia’s total in the 2024 financial year, according to Screen Australia.
NSW Treasurer Daniel Mookhey told press that the industry employs more than 13,500 people in NSW and brings $1.2 billion into the economy.
“By supporting the sector, we are acting to attract investment, stimulate job creation and boost economic growth,” he said.
Actor Claudia Karvan also appeared at the press conference, saying the arts package is “great news” which will make NSW “a lot more film-friendly”.
This investment marks a notable shift from previous years, where the industry faced funding cuts. The current package signals the government’s renewed commitment to supporting and expanding the creative industries in NSW.
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