MELBOURNE – 16 June, 2011 – The Game Developers’ Association of Australia (GDAA) welcomes the announcement of crossbench support for the $1.8 billion R&D Tax Bill.

Antony Reed, Chief Executive of the GDAA, supports the announcement as a demonstration of the Government’s strong commitment to the development of Australia’s knowledge economy.

“Since the first announcement of the R&D Tax reform and in our own discussions with the Department, it became very clear that the government has confidence in the abilities of Australian SMEs to deliver ground-breaking innovations for the global market,” said Reed.  “Innovation is at the heart of game development and the introduction of the new legislation not only assists in levelling the global competitive playing field, but also affords the local industry the opportunity to challenge traditional gameplay conventions.”

“Games have both driven advances in technology and brought advanced technologies into millions of homes around the world. The industry is constantly exploring new mechanisms to create engaging and meaningful experiences for players,” said Reed.

The global computer and videogame industry is worth an estimated US $50 billion worldwide, expected to rise to $76 billion in 2013 and is the leading entertainment sector, eclipsing DVD or theatrical movie releases. A study released in the USA last week[i] indicated that the average age of a videogame player is now 37 with 72 per cent of households playing computer or video games.

“News of the R&D tax reform has already attracted the interest of many global game publishers,” said Ron Curry, Chief Executive Officer of the Interactive Games and Entertainment Association. “The games industry is already a major contributor to the GDP’s of a number of international territories and the introduction of the legislation could well put Australia on the same path.”

“Once the legislation is passed through the Senate we should expect to see an increase in investment interest from publishers that have established development studios in Australia and potentially far greater investment in the intellectual properties being developed within local game development studios.”

The Gillard Labor Government’s $1.8 billion R&D Tax Credit is expected to provide more funding to innovative Australian companies – including ICT – and begins on July 1 2011.

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For media information or to arrange to speak with a GDAA representative, please contact:
Antony Reed

Chief Executive Officer

Game Developers’ Association of Australia

Ph: + 61 3 9008 5978

E: antony.reed@gdaa.com.au

[i] 2011 Essential Facts About the Computer and Game Industry, Entertainment Software Australia

For many years the Games Developers’ Association of Australia has been campaigning to get the same tax breaks and government funding schemes as the local film and television industries, with little significant progress made.

But the GDAA is pleased about proposed changes to the Federal Government’s Research and Development Tax Concession Scheme which ironically have been criticised by groups such as the Australian Information Industry Association for “threatening innovation”.

To read more click here

Read the full interview at gamesindustry.biz

Read the Full Story at iTWire

According to Tom Crago, President of the GDAA, the local games development community produce world-class games and have worked hard to create a community of innovation and excellence and deserved the support of the Australian government.

The Australian games development community employs over 1400 people and in 2007 generated a total income of $136.9 million.

According to Crago, tax incentives have been deployed in Canada, France and elsewhere in the world, and have been shown to assist local industry to develop its potential.  “There are over 300 companies in the video game industry in Canada employing over 8000 people. The growth of the Canadian industry has been in no small part thanks to Government support,” he said.

“Australian game developers cannot be expected to be internationally competitive when global market conditions are ‘not level’. We owe it to the companies themselves to offer these incentives and we also need to make an investment into Australia’s ‘smart economy’.”

Ron Curry, CEO of the IEAA says that the popularity of video games rivals, and in many cases surpasses, releases of popular books and film. “Interactive entertainment is a huge, mainstream business and like our home grown film and television industry, it’s vital that our local games developers are given the best chance to be competitive on the world stage.”

GDAA and IEAA will be holding joint discussions and industry round tables to highlight the importance of government support of local innovation for interactive entertainment.

Greg Bondar, CEO of the GDAA said that “the joint GDAA and IEAA campaign will be called “Game-On’ to coincide with the GDAA’s Asia Pacific GCAP conference to be held in November in Brisbane.”

The other industry issues the GDAA and the IEAA will work closely on include the need for an R18+ classification for video games and strategic reforms to address the problem of games piracy.