Australian industry welcomes extended R&D credits

The Game Developers Association of Australia (GDAA) has welcomed the extension of research and development tax credits by the Australian government, saying that the move shows faith in the country's creative and innovative industries.

Recently, the Australian government gave cross-bench support to an R&D tax credits bill of $1.8 (Aus) billion. That money will be awarded to companies which are felt to be demonstrating innovation and discovery across several different fields.

"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 GDAA chief executive Anthony 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."

The hope is that the breaks will encourage external investment from foreign publishers in Australian developers, fuelling growth in the region's industry after a punishing period.