NSW sets target to boost billion-dollar screen and digital games industries, supporting thousands of jobs

Supporting Australian storytelling, developing the next generation of creative talent, and a plan to grow the digital games sector are the key priorities of the new three-year screen and digital games strategy.

The NSW screen industry added almost $1.1 billion to the state economy in 2021-22 and is currently home to 51% of Australia’s screen production, and 49% of post-production businesses. To ensure NSW remains the leading screen state, the NSW Screen and Digital Games Strategy will:

Invest in developing local talent and audiences, including:

  • $1 million pilot program to address skills shortages will be developed and rolled out with TAFE, AFTRS and NIDA to fast-track entry level and mid-career below the line practitioners in the below the line workforce.
  • $200,000 IP option fund to give producers the ability to purchase IP rights to turn home-grown novels, non-fiction work and podcasts into screen and gaming content, so we have more Australian stories on screen.
  • $200,000 Community Film Festival Opening Night Fund will support communities share the vibrancy of screen stories with audiences from diverse and underrepresented backgrounds, by bringing them together to enjoy screen community film festivals.

Role of Screen NSW

  • New film friendly legislation will be introducedto ensure a strengthened standard of working.
  • Address impacts of Artificial Intelligence (AI) on the sector: Screen NSW will convene an industry working group to help develop an Australian industry response to AI, and review funding guidelines.
  • Priority hotline: The Head of Screen NSW will be given the authority to escalate critically urgent production issues for an urgent government response.

Supporting infrastructure

  • Addressing the critical shortage of filming infrastructure in NSW, the NSW Government will develop new partnerships with the private sector to explore alternate options for studio space, including a second studio and Callan Park.
  • Centre for Screen culture and digital innovation. Working with local government and industry partners, the NSW Government will support plans to establish a hub for creative workers across the industry.

Focus on developing digital games industry

The $466 billion global digital gaming industry is highlighted as an enormous opportunity. New incentives to support games production and increase NSW revenue for digital games to $406.39 million in 2027-28 include:

  • Reducing Digital Games Rebate NSW expenditure minimum from $500,000 down to $350,000. The Rebate is designed to nurture homegrown developers, attract and retain work and talent to the state, and accelerate growth in the NSW digital games sector. While many larger, established studios currently access the Rebate, the lowered threshold mean it will now be more accessible to a broader range of digital games companies in NSW, including many independent studios that currently operate in the state. 
  • Increased investment in the Digital Games Seed Development Program and Market Travel Programs. A flourishing games industry is one that includes large and small developers, an investment of$1.5 million over three years will support digital games producers to essential skills and build their industry networks and knowledge.

Minister for the Arts John Graham said:

“Our people, our stories, and our skills – these are the reasons why more than half of Australian screen production happens here in NSW. This strategy sets out how the government and the industry could work together to build on that.

“While there has been a recent slowdown in global screen production, the Federal Government’s increased location offset will see Australia gain a greater share of that market. This strategy recognises the opportunities that brings, as well as the pressure that puts on NSW production facilities.

“We have identified ways of cutting the red tape that has made NSW a ‘No’ state when it comes to attracting productions. Backed by the introduction of a NSW Screen and Digital Games Act, we aim to make NSW a ‘Yes’ state.

“For the first time in NSW, we are putting digital gaming front and centre. This strategy sets out a ‘hothouse’ approach that backs existing high performing producers to support the ambitious target of 20% compound annual growth in the sector.”

Head of Screen NSW Kyas Hepworth said:

“I am thrilled to be able to drive this strategy and provide a path forward for our sector, working towards a vibrant and sustainable future for all screen practitioners and game makers in NSW.

“Storytelling has the power to unite and inspire, and as a state with such a rich depth of talent, we strive to be known as the place to create compelling stories. This is an exciting time for our sector as, while developing this strategy, we have taken stock of where the industry is at and looked forward to where we want to be in the next three years. This has informed our strategy and with this vital support we want to move forward with the industry and take it to new heights.

“I am confident this strategy will provide assurance that Screen NSW are committed to supporting NSW stories and storytellers.”

Background

The strategy outlines four strategic priority focuses to support and sustainably grow the screen and digital games sector. These include:

  • Creating stories: We lead the way in making enriching, high calibre stories and cultural content for local and global audiences.
  • Building sustainable growth: Our businesses are globally recognised, connected and competitive. High quality, accessible spaces help them grow and create jobs that are future proofed and sustainable.
  • Improving capacity and capability: We set best practice standards to ensure workers have career pathways, are respected, safe, appropriately remunerated and supported in their career ambitions.
  • Developing audiences to increase demand: Local content finds and delights diverse audiences locally and around the world.

New legislation: The strategy includes proposed new legislation to ensure screen friendly approaches across local councils and state government agencies.

In 2025, the NSW Government will introduce the NSW Screen and Digital Games Act to strengthen NSW as a film-friendly jurisdiction, reduce red-tape and provide the highest level of cooperation across government with filmmakers to maximise opportunities for the sector. This will strengthen elements of the Making NSW Film Friendly Premier’s Memorandum and incorporate an updated Local Government Filming Protocol.

Renewed Screen NSW agency: The strategy will provide Screen NSW with greater independence and will build its capacity to continue to strengthen and grow the industry. This will mean:

  • Shortening investment approval timeframes, contracting and payment terms.
  • Legislation will be introduced for the Film and Television Industry Advisory Committee to include digital games representation and renaming the board to reflect this update.
  • The Head of Screen NSW will be given the authority to escalate critically urgent production issues for an urgent government response.

The full strategy available is hereScreen NSW – NSW Screen and Digital Games Strategy

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