The fund was established in 2012-2013 under the previous Labor government (Rudd/Gillard) with a total budget of $20 million, managed through Screen Australia (the Australian Federal Government's key funding body for screen content) [3][4].
The 2014-2015 budget, delivered on May 13, 2014, announced the termination of the AIGF effective July 1, 2014, with expected savings of $10 million [1][2].
Games that had received funding under the program included titles such as 3 Sprockets' "Fight the Dragon," Uppercut Games' "Epoch 2," and Flat Earth Games' "Towncraft" [1].
The claim omits several important contextual elements:
1. **Budget deficit context**: The 2014 budget was framed by the Abbott government as addressing a "budget emergency," with widespread cuts across health, education, and other sectors.
The AIGF was one of many programs cut, not a targeted attack on gaming specifically.
2. **The fund was relatively new**: The AIGF had only been in operation for approximately one year when it was cancelled, having been established in the 2012-2013 period [3][4].
It was not a long-standing institution but rather a recently introduced pilot program.
3. **Partial funding had already been distributed**: While $10 million in "savings" was projected, approximately $2.6 million had already been committed to projects by September 2013 [1], meaning the full $20 million was never actually available to be "saved."
4. **Subsequent replacement policy**: In 2021-2022, the Coalition government introduced the Digital Games Tax Offset (DGTO), a 30% refundable tax offset for eligible game developers spending a minimum of $500,000 on qualifying Australian development expenditure [5][6].
The original source provided is the **Sydney Morning Herald (SMH)**, which is one of Australia's oldest and most established newspapers (founded in 1831).
**Did Labor do something similar?**
Search conducted: "Labor government video game funding cuts arts programs"
Finding: The AIGF was actually **established by the Labor government** in 2012-2013 as part of their support for the digital creative industries [3][4].
* * * *
The Rudd-Gillard government created the fund with $20 million over three years.
However, broader context shows both parties have made difficult arts funding decisions:
- **Labor (2007-2013)**: Created the AIGF but also faced criticism for other arts funding decisions and budget constraints
- **Coalition (2013-2022)**: Cut the AIGF in 2014 but later introduced the Digital Games Tax Offset in 2021-2022, which industry representatives considered a more sustainable long-term approach [5][6]
The Interactive Games and Entertainment Association (IGEA) and industry representatives have generally viewed the tax offset as a more appropriate mechanism for supporting the industry compared to the grant-based fund, as it aligns with international best practices (similar to programs in Canada and the UK) [6].
While the factual claim is accurate - the Coalition did scrap the AIGF - the context is important:
1. **The 2014 budget context**: This was a sweeping austerity budget with cuts across virtually all sectors.
The AIGF was not uniquely targeted; it was one of many programs reduced or eliminated [1].
2. **Later policy evolution**: By 2021-2022, the same Coalition government introduced the Digital Games Tax Offset, which provides 30% tax rebates for qualifying game development expenditure over $500,000 [5][6].
This represents a shift from direct grants to tax incentives, which industry experts generally consider more sustainable and scalable.
3. **Industry adaptation**: Despite the loss of the AIGF, the Australian game development industry continued to grow, with titles like "Cult of the Lamb," "Phantom Abyss," and "Crossy Road" achieving international success, often supported by state-level funding (particularly from Film Victoria and Screen Queensland) [6].
4. **International comparisons**: The shift to tax offsets aligns Australia with global best practices.
Canada has offered similar tax incentives since 1999, and the UK introduced comparable programs in 2015 [6].
**Key context**: This was not a permanent abandonment of video game industry support, but rather a policy shift from one mechanism (direct grants) to another (tax offsets), occurring within the broader context of 2014 budget austerity measures.
However, the claim lacks important context: (1) this occurred within a broader austerity budget affecting many sectors, not as targeted hostility toward gaming; (2) the fund itself was relatively new (established ~2012-2013 by Labor); and (3) the later Coalition government introduced alternative support through the Digital Games Tax Offset in 2021-2022 [5][6].
However, the claim lacks important context: (1) this occurred within a broader austerity budget affecting many sectors, not as targeted hostility toward gaming; (2) the fund itself was relatively new (established ~2012-2013 by Labor); and (3) the later Coalition government introduced alternative support through the Digital Games Tax Offset in 2021-2022 [5][6].