Eligible developers receive a 30% refundable tax offset.
The Australian Federal Government has introduced a new Digital Games Tax Offset for eligible local developers.
“The Government will introduce a 30 per cent refundable tax offset for eligible businesses that spend a minimum of $500,000 on qualifying Australian games expenditure,” our government has detailed. “This tax offset will make Australia an attractive destination for digital talent. Consultation with industry in mid-2021 will inform the criteria and definition of qualifying expenditure to support the development of digital games. Games with gambling elements or that cannot obtain a classification rating will not be eligible.”
The Digital Games Tax Offset will be available from 1 July 2022 to Australian resident companies or foreign resident companies with a permanent establishment locally.
“This is a very welcomed day for Australian-made video games,” said Ron Curry of the Interactive Games & Entertainment Association (IGEA) in a statement. “We congratulate the Prime Minister, [Digital Economy Senator, the Hon Jane] Hume, and the Minister for the Arts the Hon Paul Fletcher MP, for recognising not only that video games have an important place alongside TV and film in Australian screen production and storytelling, but also their unparalleled potential for supercharging Australia’s exports, attracting vast inward investment, and up-skilling a whole new generation of Australian digital workers.
“The Government’s new investment commitment today will do many things. It will spur the creation of brand new Australian game development studios, give existing Australian studios the support they need to take on ambitious new projects and accelerate their growth, plus attract further blockbuster AAA studios to Australia, all of which will create game development jobs in every state.”
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