The digital games industry is a fast growing, dynamic and exciting creative sector. We advise the Australian Government about how to promote the growth of Australia's digital games development industry and increase its market share in a rapidly expanding global sector.
Digital Games Tax Offset
As announced on 6 May 2021 as part of the Digital Economy Strategy, the Government is introducing a Digital Games Tax Offset (DGTO) to promote the growth of Australia's digital games development industry.
The DGTO will make Australia a more attractive and competitive destination for international digital games development, supporting investment and highly-skilled, transferable jobs.
The DGTO will be available from 1 July 2022, providing a 30 per cent refundable tax offset for eligible businesses that spend a minimum of $500,000 on qualifying Australian development expenditure.
Eligible businesses must be an Australian resident company or foreign resident company with a permanent establishment in Australia. Games development studios will be able to claim per-project for new eligible games, and annually for a slate of further work ('live ops') done on existing/released eligible games across the financial year.
Games with gambling elements and games that would not be able to achieve classification will be ineligible for the DGTO.
The DGTO will be administered by the Office for the Arts and the Australian Taxation Office (ATO), and will form part of the Income Tax Assessment Act 1997. An exposure draft bill and explanatory statement was open for public consultation from 21 March 2022 to 18 April 2022. The consultation process has now completed, however the draft materials are still available for review on the Treasury website.
Email: DigitalGames [at] arts.gov.au