Australia to become top game development territory in five years: Reed

The Australian government's proposed research and development tax credit is the most convenient support package the Australian games industry has seen from the national government, says CEO of the Game Developers Association of Australia, Tony Reed.

The new A$1.8 billion ($1.89 billion) research and development tax credit legislation, currently waiting to pass through Australian Federal Parliament, will deliver a 45 percent refundable tax credit to businesses with a turnover of less than A$20 million, a bracket that many Australian game development studios fall into.

Reed says this will help the local industry become one of the top three game development territories in the world, something the GDAA hopes will be achieved in the next five years.

"No matter how big or small a studio is, this is the kind of thing that will encourage development. It is designed with our own independence, creativity, and innovation in mind. Our goal at the GDAA is to prepare Australia to become one of the top three territories in the world for game development within the next five years. I think this can be achieved; the industry is doing really great right now and we seem to have gone back to our roots in generating amazing content."

Aussie studios must register with the government to apply for the tax credit and show proof of research and development.

"From a contract point of view this is really attractive because it really does help offset the really high Aussie dollar," Reed says.

Check out the video below to see more of Reed's comments on the tax credit, as well as his thoughts on high game prices in Australia.