The Australian Government has announced it will be funding the countries first tax break for the games industry, with a 30 per cent offset. The move is set to energise the industry in the country, as previous tax breaks in the likes of Canada and the UK have.
Announced as part of the broader Digital Economy Strategy (via Gamesindustry.biz), in which the country is investing $1.2bn of this year’s budget, with a plan that leads all the way up to 2030.
Australian and New Zealand trade body IGEA welcomed the move, describing it as “one of the most significant [tax incentives] to be implemented anywhere in the world.”
““The Government’s new investment commitment today will do many things. It will spur the creation of brand new Australian game development studios, give existing Australian studios the support they need to take on ambitious new projects and accelerate their growth, plus attract further blockbuster AAA studios to Australia, all of which will create game development jobs in every state.”, said IGEA CEO Ron Curry.
“It is clear from today’s decision that the Morrison Government has noticed how innovative and successful Australia’s game developers are, as evidenced by standout titles like Big Ant Studio’s AO Tennis 2 and SMG Studio’s Moving Out, to the amazing local independent studios like Mighty Kingdom and Hipster Whale who are exporting their games and services around the world, as well as the investment being poured into the Australian economy by international studios such as Sledgehammer Games, Gameloft, Wargaming, and Firemonkeys”, said the Chair of IGEA and Managing Director of Koch Media, Roger Clarke.
Other countries will be looking in interest at the result of the change. Previous large tax incentives within the industry have caused major shifts in investment. Although most such examples come from before a highly globalised industry with many outsourced services. Still, Australia’s industry will no doubt benefit hugely from the move.
