Gamasutra reports that the Australian government will shut down the Australian Interactive Games Fund on July 1st, backing away from a pledge to support Australia's game industry by investing $20 million in federal funds into the sector to fund local game development. Half of the money has already been distributed to Australian game developers via Screen Australia, the government organization responsible for funding the screen production industry which also covers game development.
Apparently that additional $10 million in funds has been claimed for another purpose. The remaining $10 million will be used to "repair the Budget and fund policy priorities," according to the Australian government's 2014-2015 federal budget proposal.
The government did not explain how this might affect Australian developers who are currently receiving government funding through the program, or what will happen to Screen Australia's game development programs going forward - whether this is a temporary situation due to budgetary limitations or if the government has completely given up on this particular initiative altogether.
The news of the government's abandonment of the fund was first brought to light by No Goblin co-founder Dan Teasdale, who is currently working in the U.S. on the a "revolving chauffeur simulator" called Roundabout.