State government pledges $100m to help build second movie studio in Sydney

Movie production in Sydney will get a huge boost, with the Minns government to pour $100m for a second ‘Hollywood’ film studio to lure big blockbusters and stars, like Chris Hemsworth and Margot Robbie.

Filmmaking in Sydney is set for a significant boost, with the Minns government to pour $100m towards the creation of a second “Hollywood” film studio.

The upcoming NSW budget will commit a portion of a $380m screen and digital games package to a capital fund for a new production space.

While filmmaking in Australia has been growing, a critical shortage of space threatens to hamper production, with the sole film studio in Sydney being Disney Studios Australia at Moore Park.

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

However, the industry has warned the lack of infrastructure might force productions to go elsewhere.

Anya Taylor-Joy (l to r), George Miller and Chris Hemsworth at Cannes in 2024 to promote Furiosa: A Mad Max Saga, shot in Sydney. Picture: AFP

Australian actor and producer Claudia Karvan said a second studio would greatly benefit local productions. She said filming in the community often meant dealing with challenges such as aircraft noise to having nowhere to park trucks, and dealing with council red tape and fees.

“This is very exciting and welcome news,” Karvan said.

Claudia Karvan says a second studio would boost local productions. Picture: Getty Images

Veteran director George Miller is understood to be involved in ensuring a second studio becomes a reality.

A market sounding of potential screen studio locations has already been undertaken in response to industry demand to identify suitable sites.

The government investment will occur once a business case for a suitable site is approved.

Among the proposed sites is Oran Park, where the proponents have already lodged a development application with the council in the hope of attracting investment.

The Greenfields Development Company proposal includes three large sound stages, production offices, working spaces for all departments and a multideck parking facility.

However, the company says on its website that the sheer scale of the project will require “additional funding opportunities” to bring the film and TV studio to life.

The Sunday Telegraph is also aware of a major investor looking at a site near the Eveleigh railyards in Redfern, while Silverwater has also been flagged as a potential site.

Kingdom of the Planet of the Apes was shot at Disney Studios in Moore Park.

The government is hoping its investment will create more local jobs while consolidating an industry that already employs 13,500 people.

The rest of the package will go towards programs to support the sector such, as the Made in NSW fund, and post-production, digital and visual effects and digital games rebate schemes.

The programs have supported productions, post-production and digital effects for projects such as The Artful Dodger, Anyone But You and Furiosa: a Mad Max Saga.

Arts Minister John Graham said a second studio would also ensure local producers were not squeezed out by big overseas productions.

“NSW is the home of the screen industry in Australia,” he said.

“Our screen sector continues to wow the world with our storytelling. Their work shows the world who we are.

“The government is backing the sector and planning for growth. This $100m capital fund will pave the way for the delivery of this studio.”

Foreign productions are also big business for Australia’s screen industry, although there have been fears US President Donald Trump’s proposed movie tariffs could jeopardise the industry.

Treasurer Daniel Mookhey, who will deliver the budget on June 24, said the screen and digital games sector generated $1.2bn into the state’s economy and supported 13,500 jobs.

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

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Originally published as State government pledges $100m to help build second movie studio in Sydney