The following is a much more poignant comment to take out of it than some bitter ex-employee,Sounds like a bleeding mess to say the least.
Australian game development is a tricky and risky business without government support (unlike Aussie film and TV) that other countries have. Anyone working in the Aussie games industry knows that they may not have a long-term job when they are employed.
Considering how many people I know who do Games Development courses at my uni, I certainly hope that there is future change in the government's position, and as I certainly saw from the Transmission guys, there is huge passion in the industry despite the issues it faces. That's probably what made so many of them keep trying and form Trickstar.
There's some funding at the state level, that's why Melbourne is quite a centre for development, but it's nothing compared to what the so called "mainstream" entertainment gets.