The Government is hoping to entice more video game developers with a 20 per cent rebate announced in today’s Budget, with $160 million allocated.

Minister for the Digital Economy and Communications Ginny Andersen said they were laying the foundations for a “low-emissions, high-wage economy with a major investment into our digital and technology sectors”.

“We know from looking at advanced economies like Germany, South Korea, Japan and Singapore that the best investments you can make in the future of your economy are in science, skills and infrastructure.”

Andersen said in 2021 the sector contributed $7 billion towards New Zealand’s GDP and, since 2016, has grown at twice the annual rate of the wider economy.

“Our gaming sector is rapidly growing and is a strong contributor to New Zealand’s GDP, bringing in more than $400m in revenue in 2022,” she said.

“The sector is a creator of high-skill, high-wage jobs - aligning with our vision for a low-emissions, high-wage economy, helping to lift our productivity and wealth.”

The 20 per cent rebate will be available for game development studios that qualify and meet the minimum $250,000 expenditure threshold per year.

Individual studios will be able to receive up to $3m per year in rebate funding, and the scheme will be backdated to April 2023.

In addition to the gaming rebate, the Government is investing $27m in a Digital Skills package that will be focusing on growing our tech sector workforce under the Digital Technologies Industry Transformation Plan.

Funding will support the development of apprenticeship-like pilot programmes, which will include part payments for trainee wages, employer support and guidance, and will cover set-up costs for trainees.

Research, Science and Innovation Minister Ayesha Verrall said the Government was also developing new multi-institution hubs to increase collaboration in research and science.

This included fellowships and funding to develop more than 260 future science leaders.

Hubs will include climate change and disaster resilience, health and pandemic readiness, and technology and innovation.

- Michael Neilson, NZH