We speak English and we have got great locations

Kim Dalton, chief executive Australian Film Commission

The tax concessions are designed to encourage this growth and make the Australian industry more competitive.

The country's main competitor is Canada which currently attracts an estimated 90% of American films produced outside the United States.

Building on success

Australia's film industry saw an 84% increase in the number of foreign productions using the country's facilities last year.

This increase contributed towards a 6% rise in the amount of money spent on film and television production, bringing last year's total to 608m Australian dollars ($310m; �218m)

"It has been happening on the basis of the low dollar, very good crews, the fact that we speak English and we have got great locations," Kim Dalton, chief executive of the Australian Film Commission told the BBC's World Business Report.

Tax incentives will stimulate this growth, he said.

'Jungle' location

There are two film studios in Australia, Fox Studios in Sydney and Warner Roadshow Movie World Studio's on Queensland's Gold Coast.

Queensland has become a leading destination in the world for film directors seeking a jungle location, according to Mr Dalton.