The Australian authorities want to develop the gaming industry with the help of tax incentives and simplified visa issuance
Until 2020, the Australian government almost did not support video game developers. Because of this, all AAA studios were closed in the country and there was a shortage of specialists. Ron Curry, head of the local Association of Interactive Games and Entertainment (IGEA), told what the authorities are doing now to fix the situation. Among the measures are a 30% tax deduction and a simplified procedure for obtaining work visas.
Ron Curry shared an analysis of the situation in a column on the portal Gamesindustry.biz . We have chosen the main thing from it:
- According to Curry, historically, among developers from developed economies, it was the Australian ones who received the least subsidies and support from the authorities.;
- At the peak of the global financial crisis in 2009, many large gaming companies closed in Australia. In 2015, the last AAA studio, 2K Australia, also closed. Also, many professionals left the country who found the best conditions abroad;
- In the 2010s, the Australian gaming industry focused around indie and mobile games. Fruit Ninja, Crossy Road, Hollow Knight and Untitled Goose Game were among the iconic projects of this era;
- By 2020, the Australian authorities have recognized that the video game industry can make an important contribution to the economy. They started working on a set of measures that would make the country more attractive for large studios and publishers;
- In September 2020, a Global Working Group on Attracting Business and Talent appeared in Australia. It helps foreign workers (including those from the gaming industry) get a visa faster and arrange relocation for company executives, key employees and their families;
- In May 2021, officials proposed to introduce a 30% tax deduction for games with revenue over 500 thousand Australian dollars. The initiative will work from July 2022;
- according to Curry, thanks to the tax deduction, the authorities will be able to create and then maintain a full-fledged ecosystem of game development. He referred to the world experience. They say that large studios are a kind of training base for developers. After working there for some time, employees leave the company and open their own studios. With the increase in the number of studios in the country, the number of jobs begins to grow, and with it the number of experienced developers;
- In addition, at the end of June, Australia expanded the List of Qualified Professions for Priority Migration (PMSOL). She added 22 more specialties to it, among which there are software and application programmers, as well as multimedia specialists. It has become easier for them to get a work visa and a residence permit in the country;
- Curry notes that a number of international companies felt the potential of Australia even before the launch of the above measures. For example, in 2019, a new office of Sledgehammer Games, the developer of Call of Duty, opened in Melbourne. Wargaming, Firemonkeys and Ubisoft announced the hiring of new employees in the Australian divisions;also in recent months, Australian studios have become more active in the M&A market.
- For example, in January, 505 Games, the “daughter” of Digital Bros, acquired the Australian Infinity Plus Two, the authors of Puzzle Quest and Warlords;
- Nevertheless, the gaming industry in Australia still faces many difficulties. These include production problems, lack of gender and racial diversity in the industry, poor support for small studios in the field of business education, poor training of specialists in universities and closed borders;
- In the future, IGEA would like to restore the Interactive Games Fund to support small studios. Whether it will be possible to do this is still unknown. But in any case, Curry is confident that the Australian gaming industry has a bright future ahead of it.
