The New South Wales (NSW) Government has unveiled a three-year strategy aimed at bolstering the state's billion-dollar screen and digital games industries.

The strategy comes in response to the significant contribution of the NSW screen industry to the state economy, which accounted for nearly $1.1 billion in 2021-22, representing 51% of Australia's screen production and 49% of post-production businesses.

The strategy includes a $1 million pilot program to address skills shortages in partnership with TAFE, AFTRS, and NIDA. A $200,000 IP option fund will be established to enable producers to purchase IP rights to convert local novels, non-fiction work, and podcasts into screen and gaming content. Additionally, a $200,000 Community Film Festival Opening Night Fund will be created to support communities in sharing screen stories with audiences from diverse and underrepresented backgrounds.

"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," said Minister for the Arts John Graham.

The NSW Government also plans to address the shortage of filming infrastructure in the state by developing new partnerships with the private sector. The strategy highlights the $466 billion global digital gaming industry as a significant opportunity and aims to increase NSW revenue for digital games to $406.39 million in 2027-28.

"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," Graham said.

The Digital Games Rebate NSW expenditure minimum will be reduced from $500,000 to $350,000 to support homegrown developers and attract and retain work and talent in the state. An investment of $1.5 million over three years will be made in the Digital Games Seed Development Program and Market Travel Programs.

"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," Graham said.

The strategy also includes the introduction of the NSW Screen and Digital Games Act in 2025 to strengthen NSW as a film-friendly jurisdiction and reduce red tape. Screen NSW will be given greater independence, and its capacity will be built to continue to strengthen and grow the industry.

"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," said Graham.

Head of Screen NSW, Kyas Hepworth, echoed the Minister's sentiments. She 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."