This history of Perth screen culture gives these reasons.

I would add 11) the talent pool is deep, 12) so we can all live a Hollywood fantasy in Perth accents and 13) why not?

Did I miss any?

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From; Phillip Adams, Why make films in WA?

Why make films in W.A.? I suppose the normal arguments include the following ten points:

1. The weather and the landscape evoke fond memories of a pre-smoggy Los Angeles.
2. A film industry is good for tourism.
3. It is a sunrise industry with a very fast startup time.
4. It is labour and capital intensive.
5. It has a number of desirable flow-on and multiplier effects.
6. Apart from the weather WA has the money. In fact you have got so many millionaires here you are going to need a form of Nixo to control them!
7. You also have the entrepreneurs, either home grown or foreign expats from Britain and South Africa who seemed determined to take over the media of the nation and perhaps the planet.
8. It is a business that is going to grow by leaps and bounds.
9. Australia is the fifth market on earth for the US. They will repatriate $1 billion in film rentals in the next ten years and perhaps more of that money could be kept in Australia, or in Western Australia, with stronger local industries.
10. At the moment you attract about one per cent of film activity.