'Made in NSW' is a fund used to attract television and blockbuster films such as Thor: Love and Thunder, while the PDV offset is a 10 per cent tax rebate for industry workers.

The figure sat within a wider $188 million cut to the Department of Enterprise, Investment and Trade, the portfolio behind economic development and investment attraction.

Industry figures warned earlier in the month the decision would jeopardise film and television production and send thousands of jobs interstate, off the back of a booming demand to shoot in the state.

Minister for the Arts John Graham said the state government was "providing certainty" for the program and rebate, rather than revising the budget process.

"What we are doing is replenishing funds to the level we had expected to account for the increased demand, while we work through the business case for future screen funding," he said.

In a letter to stakeholders, he said the original funding term for the PDV rebate was always set to expire in the 2023/24 financial year, while the Made in NSW program was slated to end in 2024/25.

Both funds will now continue on existing terms to eligible projects while the government works with industry to develop new initiatives for the screen and digital games sector.

Mr Graham said he will not be revising the process behind the latest budget.

He said in a statement he was looking forward to working with industry to support and grow the screen and digital games sector.

"What we are giving is commitment and certainty for the sector to continue planning and production in NSW."

Union welcomes action:

The Media, Entertainment & Arts Alliance (MEAA) welcomed the reinstatement and thanked the Minns government for its quick action.

"This will ensure that NSW remains a major destination for film and television production," the union's chief executive Erin Madeley (Above left) said in a statement.

"The screen industry is an important part of NSW's cultural and economic identity. It generates hundreds of millions of dollars in economic activity and supports thousands of skilled jobs and small businesses."

Screen Producers Australia (SPA) CEO Matthew Deaner said the decision was a relief.

"While there will be some work to do to fully restore NSW's standing, we appreciate that the Government has listened carefully and responded accordingly," Mr Deaner said in a statement.

"Going forward, the industry is optimistic that we can advance the NSW sector on a positive footing and ensure that our creative industries here take their rightful place in the national and international economic and industry landscapes."

Original Story By | Millie Roberts