Modern Australian
The Times

A sustainable Australian video game industry? Production rebates are a small, important step

  • Written by Brendan Keogh, ARC DECRA Fellow, Queensland University of Technology

In a first for Australia, the South Australian government has announced a new rebate for video game development. Companies will be able to recoup 10% of production costs on projects spending at least A$250,000 in the state.

This rebate is a strong step for the local industry, but more than one approach is needed to make games production sustainable in Australia. This funding has the potential to grow mid-to-large sized game development teams, but not the smaller creators.

While a handful of Australian studios have teams of 20-50 staff and a couple of foreign-owned companies can boast workforces of approximately 150, the video game industry here is overwhelmingly populated by much smaller, independent teams.

These groups of 10 or less, located in co-working spaces or single-room offices, rely overwhelmingly on casual or contract employment, often creating just one or two games.

An industry of small players

Australia’s small indie teams, though volatile, have had a number of hugely creative global successes over the past decade, such as Untitled Goose Game and Hollow Knight.

Historically, support for independent development in Australia has been sporadic and inconsistent, largely funded through state-based grant programs offering relatively small amounts of cash to cover production expenses, travel costs and skills development.

Read more: Honk if you love Untitled Goose Game: why we should invest more in our indie game creators

While some Australian game-makers have dreams of growing into huge companies, many want to continue making games at the size they are. Imagine an indie rock band with a breakout hit – they’re not about to go and employ 100 more drummers. But this creates a problem for the local industry.

The Game Development Association of Australia estimates every year, 5,000 students enrol in tertiary game development programs. In an industry where most teams are content to stay at the same (small) size, these students have nowhere to go and no choice but to start their own independent companies.

Some will have massive breakout hits – like Route 59 with their recent game Necrobarista. Many will release their first game to no fanfare. Their company will fold and they will disappear into other sectors or head overseas.

Video game screenshot Necrobarista was released in Australia in June 2020 to global success. Route 59 Games

Plenty of (risky) room to grow

Mid and late career overseas talent won’t move to Australia without opportunities for later career employment. This leads to a senior talent vacuum.

Rebates can help here, encouraging large multinational companies, such as Rockstar, Activision and Ubisoft, to set up or invest in studios in countries where they can access the most skilled developers at the cheapest cost.

This is something that Canada, in particular Montreal, has taken advantage of. Since the late 1990s, the Canadian and Quebecois governments have offered the industry a range of subsidies, rebates and tax offsets.

Montreal alone is now home to over 10,000 game developers (10 times more than all of Australia); 3,000 at the local Ubisoft studio alone.

Justin Trudeau wears VR goggles on his head and gives a thumbs up. Support for the video game industry in Montreal has seen global giant Ubisoft – here paid a visit by Prime Minister Justin Trudeau – employ 3,000 local staff. Ryan Remiorz/The Canadian Press via AP

But there’s also risk in growing a local game industry this way. When Quebec tried to remove its tax breaks in 2014, the local industry threatened to head elsewhere. The government reinstated the tax breaks the following year.

Australia has seen a similar story before. In the late 2000s, Australian studios were largely dependent on contract work and financial arrangements with North American publishers. When the Australian and American dollars hit parity during the Global Financial Crisis, Australia could no longer provide cheap outsourced labour. Studio closures came hard and fast - all but decimating the Australian video game industry at the time.

With the new rebate, South Australia is hoping to attract some of these overseas businesses to take advantage of local talent. There’s always the risk somewhere else will eventually offer an even better rebate.

Nonetheless, attracting international companies to the state would give graduates a chance to be employed at a larger, more stable company and develop their skills before going indie later in their career, with more experience.

A multi-pronged approach

The rebate is also primed to benefit the few mid-sized South Australian studios that already exist, such as Mighty Kingdom and Monkeystack, and encourage other smaller teams to consider scaling up.

Publicity shot from Ava's Manor. Adelaide’s Mighty Kingdom employs over 70 creatives. Their latest game is Ava’s Manor. Mighty Kingdom

But such a rebate is less useful to the small independent teams that are currently the bread and butter of the Australian industry, many of which don’t have $250,000 to invest in a project.

For these small teams, producing innovative intellectual property exported across the world, grant programs are more immediately useful.

Read more: Australia's videogames are inventive, acclaimed and world-class, so where's the government support?

Building a sustainable and successful video game industry requires a multi-pronged approach that nurtures the whole ecology: creatively driven artists that are the local talent, business-savvy entrepreneurial start-ups with the ambition to build larger Australian owned studios, and the massive (but fickle) foreign owned studios that provide little creative freedom but much greater employment stability and opportunity.

The SA rebate alone won’t create a sustainable national industry, but in lieu of much needed support from the Federal Government it is another step in the right direction by a state government.

Authors: Brendan Keogh, ARC DECRA Fellow, Queensland University of Technology

Read more https://theconversation.com/a-sustainable-australian-video-game-industry-production-rebates-are-a-small-important-step-147090

Vista Cruises Enters "Two-Flagship Era" as Vista Aurora Completes Inaugural Voyage

Vista Aurora Sets Sail along the Yangtze. (Photo courtesy of the company)YICHANG, China — August 5, 2026 — Vista Aurora, a high-end interprovinc...

A Digital Preparation Checklist For International Medical Conferences

An international medical conference compresses many responsibilities into a few days. A delegate may need to present research, move between venues, ...

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...

Caravan Travel for Modern Australian Getaways: Plan a Comfortable Holiday

A family road trip is one of the best ways to explore Australia together. And, travelling by caravan gives you the freedom to take your time, stop a...

Mini Excavator and Trailer Package for Sale: What I Buy as One Deal in 2026

The first client who asked me for a mini excavator and trailer package for sale wasn’t trying to save a few hundred dollars on shipping. They we...

Make Dad a Guest in His Own Home This Father’s Day

Father’s Day can accidentally turn Dad into the unpaid event manager of his own celebration. He lights the barbecue, finds extra chairs, checks wh...

Where to Enjoy Your Off-Road Caravan on the Gold Coast

With a caravan, you can travel anywhere and everywhere without battling the rush of the peak holiday season or last-minute reservations. While the r...

How Osteopathy Supports Recovery from Sciatica and Nerve Pain

Sciatica isn't just annoying. It's genuinely painful. It sits deep in your glute and shoots straight down the back of your leg. It turns something as...

The Winter Jewellery Edit: Five Pieces You'll Wear All Season

As wardrobes shift to cosy knits, tailored coats and rich seasonal textures, jewellery becomes the finishing touch that pulls every winter outfit to...

7 Signs It's Time to Upgrade Your Piston Air Compressor

If you run a workshop, panel shop, or fabrication business anywhere around Perth, you already know what heat and dust do to equipment over a few sum...

How Long Do Bathroom Renovations Melbourne Take? Step-by-Step Process Explained

Planning a bathroom renovation is exciting, but one of the biggest questions homeowners ask is, "How long will it take?" While every project is uniq...

Why Your Skin Breaks Out: The Science of Acne Explained

Acne is the most common skin condition in the world. An estimated 85% of people experience it at some point between the ages of 12 and 24, and a gro...

10 Swimwear Trends Australian Women Are Wearing This Summer

Every Australian summer brings a fresh wave of swimwear trends, but some styles have much greater staying power than others. While fashion constantly ...

Why Regular Skills Updates Are Essential for Licensed Security Officers

A guard at a Brisbane shopping centre gets a call about a shoplifter who's turned aggressive.  They’ve done the job for six years. But their de-...

10 Benefits of Choosing Professional Tutoring Penrith Services

Every student has unique learning strengths, challenges, and academic goals. While classroom teaching provides essential knowledge and structure, so...

Sunshine Coast Baby Classes Prove Big Hit Among First-Time Mums

There's a movement gaining traction on the Sunshine Coast, providing a village of support, socialisation and relief for first-time mothers and babie...

Father's Day Gift Ideas for Men Who Are Hard to Buy For

Some dads are easy to buy for. Others do not want anything, already have everything, or give you the classic "don't worry about me" answer every yea...