THE Greens say increasing the location tax offset would make Australia "the world's premier location" for film and television production.
Greens Leader Christine Milne said costings from the Parliamentary Budget Office released this week showed that increasing the location tax offset for films from 16.5% to 30% would cost just $27 million over the forward estimates.
The blockbuster film Wolverine is being shot in Australia after 20th Century Fox was offered a one-off 30% location tax offset.
"The PBO costings show this is a small investment for a huge multiplier," Senator Milne said.
"This investment will be returned many fold, keeping talented and creative people in Australia, creating thousands of jobs in the creative arts sector and generating millions in local investment.
"Last year when I visited the set of Wolverine I was delighted to discover the film had employed 1700 people, contracted 850 companies and generated $80 million for the local economy."
The government is believed to have made a similar offer to Disney for 20,000 Leagues Under the Sea: Captain Nemo, to be filmed in Australia.
A spokesman for Arts Minister Simon Crean told Fairfax last week the government was considering broadening the 30% location offset.
Mr Crean is expected to address the issue when he fronts the National Press Club next week to talk about the government's National Cultural Policy.