The Australian film sector will benefit from a new offset to production costs without a tax rise after the government was forced to back down from its original proposal.
In the Senate on Wednesday morning, Labor and the crossbench successfully voted to remove a section of the bill that would have impacted smaller production companies by raising the eligibility threshold for the offset.
Communications Minister Paul Fletcher originally said the amendments would put the screen sector at risk.
"As the government has consistently said, we will not agree to these amendments, as these reforms work as a package," he said in a statement.
But on Wednesday afternoon the government supported the change and the bill passed the House of Representatives.
Manager of Opposition Business Tony Burke told parliament the bill was a good outcome for the sector and would ensure Australian stories were told.
Greens MP Adam Bandt said the amended bill was a win for parliament and showed the importance of holding the government to account.
