Regional Insights from Australia, May 2021
This month we hear from Kea’s Global Director, Communications and Community, Ele Quigan, who discusses the trends she’s seeing in the Australia.
Early May saw the unveiling of the Australian budget and an AUD1.2 billion expansion to the Australian Government’s digital economy strategy. The budget included measures to match skills training to areas of demand, and incentives to lure businesses and talented individuals to Australia.
Talk across the Tasman immediately turned to the potential impact on New Zealand’s NZD324 million, high growth video games industry, with media speculation that Australia’s introduction of a 30-40% tax incentive for this industry from July 2022 will drive businesses to relocate from New Zealand to Australia. To qualify for the tax offset, businesses would need to spend AUD500,000 or more on games projects in Australia, an offer which may tempt New Zealand businesses currently benefiting from growth in the NZD296 billion global gaming industry or those already considering expansion.
Despite global lockdowns, over 95% of New Zealand creators’ income came from overseas audiences according to the industry, and gaming is being pitched as New Zealand’s next $1B industry, adding jobs for creatives and digital experts, provided the right initiatives, tax incentives and investment are in place. As competition for talent heats up, what happens with the gaming industry in Australasia over the next 12 months is one to watch.