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Digital Game Development Hub Planned For South Australia

November 28th, 2017 game controller

A dedicated video game hub is to be set up in Adelaide over the next three years and will potentially generate 500 new jobs. The state government is granting $2 million to the project, much of which will go to the fit out, skill development and education programs and the production and marketing of Adelaide-built games.

Operated by the non-profit company Game Plus, the hub aims to increase the profile of South Australia’s gaming, animation and software development community. Ron Curry, Chief Executive of the Interactive Games and Entertainment Association, said that South Australia was supporting a “creative, export-focused and weightless” industry. He recalled that many experienced game developers left the country due to a lack of opportunities and that plugging the knowledge gap would be a struggle. The establishment of the hub will hopefully attract talent from around the world to help rebuild the gaming development community, which took a hit in 2009 when major Australian gaming studios shut down.

Employment Minister Kyam Maher stated that Adelaide was becoming the best place for digital game makers to work and that, “By establishing the games hub here in the city, we’re sending a clear message to this multi-billion-dollar global industry that we are open for business.”

Developers at the video game hub will likely be conducting research and development to generate new knowledge on a global scale and will thus be eligible for the R&D Tax Incentive. While the R&D Tax Incentive is great for businesses undertaking innovative activities, it is also important that the credit is understood and claimed correctly.

Ausindustry has released new guidance that companies and tax agents should be mindful of in regards to supporting activities. Not all activities relating to a project will necessarily be directly related to the core activity.

If your company is unsure of any element of the R&D claim, please contact our experts at Swanson Reed R&D Tax Advisors who will be able to advise you.

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