As far as I can tell, attracting existing game development companies is the wrong approach actually. Australia just isn't really suited for it. Most devs I know who are submitting are saying something to that sentiment. Anything AAA will be difficult to collaborate due to our locale - and it'll be expensive.
Any misconception that bigger is better needs to be removed from the Australian Governments list of preconceptions.
In other words, at every single turn where it's possible, the Australian government has done everything within it's power to squash Australian game businesses
At least on a federal level, yeah. But Victoria has got a lot going for it, it seems. I'd be happy with my submission if all it reads is "bigger and better Victoria everywhere" on it. Not to say that Victoria is acceptable, just a hell of a lot more acceptable than anywhere else.