The gaming industry is taking the world by storm with its impressive growth rate. It is forecasted to grow more than the music and movie industries combined. This predicted growth gives governments worldwide an excellent reason to invest in this sector. Australia is already taking the lead by investing heavily in game development. This investment is excellent, considering a huge chunk of Australia’s population is enthusiastic gamers.
The Australian Government’s goodwill toward the gaming industry has made game development more achievable and accessible. It has minimized the cost of developing games and the lengthy process. So far, Australian developers have produced some of the world’s incredible games. In this article, we discuss the successes of the gaming industry while highlighting the government’s support offered to studios and developers in Australia.
Australia’s Gaming Pedigree
With the help of the Government, we can all agree that Australia consistently punches above its weight when investing in game development because it has a smaller gaming population than heavy hitters such as Japan, US, and China. Despite its smaller market, the developers have released globally renowned games with a considerable following.
Team Cherry Studio based in Adelaide, released the Hollow Knights in 2017, which rocked Steam Charts. It became one of the most favorite indie games for gamers worldwide and brought Australia into the gaming scene. The Hollow Knight: Silksong, its successor, is also one of 2024’s most expected games.
The Untitled Goose Game, developed by Melbourne Studio House, attracted enthusiastic gamers worldwide and sold over 1 million copies within the first three months. Brisbane’s Witch Beam’s Unpacking, released in 2021, became an instant hit that sold 100,000 copies in ten days. These games won many awards, including the DICE Awards and BAFTA recognition.
Australia’s New Initiative to Expand Game Development
Some Australian states like Queensland and New South Wales already enjoy tax incentives and funding schemes for game development. However, after discovering the economic potential of this industry, the Australian Government has set up two expansive financial initiatives to support game development in the country.
The funding will improve the quality of the development process, resulting in high-quality games. Consequently, the technology from these games can be used by several sectors, such as the casino industry. Several platforms are now striving to create casino games. Most Australians who love to play great games can find the best high-quality online casino games when they visit Gambleonlineaustralia.com. From this site, you will also discover the best casino bonuses and casinos that offer fantastic deals. Moreover, you will also know how to activate your bonus as well as the wagering requirements.
The incentives offered by the Australian Government are discussed below.
The Games: Expansion Pack
Screen Australia, the Government’s arm for funding the screen production sector, started The Games: Expansion Pack incentive in March 2022. This incentive gives Australian games with a budget not exceeding AU$500,000 a direct sponsorship of up to AU$150,000. This funding is available for mobile, PC, and console games.
The Games: Expansion Pack is meant to deal with the many hidden costs, high overheads, and upfront costs bedeviling first-time developers. It helps smaller indie studios comfortably pay their employees, rent space, and manage other game development expenses. This assistance also enables developers to create high-quality games that compete favorably with others in the competitive gaming industry.
After launching The Games Expansion Pack in 2022, Screen Australia gave over AU$ 4 million to 30 different Australian games, and in 2024, the funds were paid by May. This incentive perfectly complements the Digital Games Tax Offset.
The Digital Games Tax Offset
Australia’s Digital Games Tax Offset is the best incentive given to game developers worldwide. This funding came to light in May 2022 as a Treasury Amendment Bill through the Australian Parliament in November 2022. The Digital Games Tax Offset provides a refundable 30% tax offset for game development projects costing over AU$ 500,000.
Besides supporting local game developers, this incentive will encourage foreign investment in the Australian gaming industry. Since its launch, venture capital leaders have invested hundreds of millions in Australian gaming. The AU$20 million cap per year will enable Australian Games Studios to claim a tax offset of AU$ 66.7 million yearly.
The game development sector in Australia has warmly received this opportunity, which will boost international investment, revenue growth, and job creation. The tax offsets will further enable Australia’s gaming sector to continue providing quality games internationally.
What Should Developers Consider in Order to Utilize These Schemes?
Consider Localization
If you’ve developed a great game, it will get the attention of gamers that communicate in different languages. For your creation to appeal to many gaming enthusiasts, consider localizing it by translating the game into various languages. Although this task is tedious, it always pays off because it enables your game to target a wider global audience.
Research Regulations
There is always a probability that your game will be a success internationally. Therefore, you must research the local and international market’s relevant laws and other aspects that are likely to affect your game. There may be various legal loops that you must go over to sell the game legitimately. For instance, some countries won’t allow culturally sensitive topics or violent games. A thorough research of local and global regulations will guarantee a return on your investment in the game.
Final Thoughts
The greatest challenge for game developers is financing every phase of the development process because it comprises innumerable hidden costs, costly overheads, and other expenses. The Australian Government is slowly lifting this burden by providing The Games: Expansion Pack and The Digital Games Tax Offset incentives. These two incentives have facilitated the gaming sector’s growth, leading to the development of high-quality games. These funding schemes will cement Australia as one of the biggest gaming hubs in the world.
