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Australian Game Industry Demands 30 Percent Tax Cut

By Zerina Post a Comment

GAMEFINITY.ID, Jakarta – The Interactive Games and Entertainment Association (IGEA) asked the Australian Government to provide a 30 percent tax cut for the game industry players. Australia’s Small Business Ombudsman Kate Carnell said the tax cuts would encourage the gaming industry to be more productive, as other countries provide. If it gets the tax incentives, Australian game producers will be more competitive internationally.

“Internationally, we see the video game production industry in countries that offer tax incentives such as Canada, the UK and New Zealand gaining a much larger market share. Tax breaks for the development of the video game industry would be a great start for Australia,” he said in Canberra, Thursday (11/19/2021).

Carnell said the government needed to support the video game industry because it had great potential for the Australian economy. Moreover, most video game producers are still small industries and start-ups. He considered Australia has the opportunity to take greater profits in the video game business. Currently, the global video game industry is worth around AUD 250 billion or IDR 2.58 quadrillion in 2021, but Australia’s share is only AUD 114 million or around IDR 1.17 trillion.

He also suggested the government to create a tax incentive scheme to support the business sector. For example in Canada, the government offers digital tax breaks that take into account the amount of labor and the cost of marketing the product. Thanks to these incentives, the Canadian video game industry is now able to employ more than 27,000 people on a full-time basis and generate AUD 3.8 billion in revenue.

While in Australia, according to Carnell, the full-time workforce in the sector is less than 1,300 people and earns less than neighboring New Zealand. With tax breaks, according to IGEA research, Australia is estimated to be able to develop video games worth AUD 1 billion or IDR 10.3 trillion, increase export revenues and employ up to 10,000 workers.

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