Film development agency Screenwest will soon become a not-for-profit, in a bid to attract more funding for West Australian filmmaking.

The decision brings Screenwest in line with other major arts organisations in WA like the WA Symphony Orchestra and the Perth International Arts Festival, and it will be competing for the same pool of funding.

While Screenwest will no longer operate as a government entity, it will still receive government grants.

"This change in no way jeopardises Screenwest funding, it just makes Screenwest more autonomous and able to respond to marketplace pressures better than they can at the moment," Arts Minister John Day said.

The Minister is confident the local film industry will continue to thrive.

Jamie Hilton, the producer behind the on screen adaptation of Tim Winton's Breath, agrees.

"There's a really strong emerging sector here and with that comes a great deal of ambition and focus and there's a lot of people trying to make their way here," he said.

The cast and crew of Breath filming in Denmark, WA. ( Supplied )

The movie starring Australian actor Simon Baker is in post-production with a release date set for next year.

"I think there's been a huge increase in production in Western Australia in the last few years ... they've seen unprecedented production here and Screenwest is a big part of that," Hilton said.

However there are concerns among local filmmakers the move will make it even harder to secure funding.

"There's no question it's difficult and it will continue to be, it is a really challenging career opportunity but what we've been able to do is increase those opportunities in Western Australia," Screenwest CEO Ian Booth said.

"I liken it to the planets need to align when you're talking about significant multi-million dollar projects to get off the ground."

The implications for the Film and Television Institute are still not clear because it is the first time such a model will operate in Australia.

"We're certainly hoping that these changes work for us as well in supporting the merging sector," FTI's CEO Paul Bodlovich said.

Conflict of interest

The WA Government has also moved to address concerns over conflicts of interest on the Screenwest board by removing WA industry practitioners.

ScreenWest CEO Ian Booth said getting film funding would always be a struggle. ( ABC News: Louise Merrillees )

Instead, there will be a new industry advisory group, involving five producers, which will help the board with strategic planning.

Board chair Janelle Marr said the move would ensure the board would meet the governance requirements of its new corporate structure.

"When we have our producers who are being funded by the agency as well it can sometimes be difficult to manage those conflicts of interest," she said.

The changes come after conflict of interest concerns were raised in September and then discussed in a WA parliamentary committee hearing in October, with Labor MP Tony Buti saying board members could not "have their cake and eat it too".

"I find it disconcerting that you have board members who are having projects that they have an economic interest in receiving funding from the board that they sit on, even if you have got all those balances and checks," he said.

But Ian Booth told the Community Justice and Development Committee that potential conflicts were managed appropriately and it was important boards had industry expertise.

Editor's note December 2, 2016: This story initially reported Screenwest would become a private company. It will in fact become a not-for-profit organisation. The story also incorrectly stated Red Dog was produced by Screenwest. It was in fact funded by Screenwest.