The Australian government will shut down the Australian Interactive Games Fund on July 1, reassigning nearly $10 million it had previously earmarked for local game development studios.

Media funding body Screen Australia has awarded $10 million of the government's promised $20 million stimulus to Australian studios in a bid to stem industry employment drop and promote business sustainability. Screen Australia dispersed a $6 million grant to game developers in June last year, followed by an additional $2.6 million in September.

The Australian government notes in its recently published 2014-2015 budget proposal that it will use the shuttered project's remaining $10 million to "repair the Budget and fund policy priorities."

[Image: Australian government]

This article was originally published on Joystiq.