The Government has introduced legislation to establish a Digital Games Tax Offset.
Legislation to establish a Digital Games Tax Offset has been introduced by the Government in the House of Representatives.
The legislation forms part of the Treasury Laws Amendment (2022 Measures No. 4) Bill 2022, and was introduced by Assistant Treasurer the Hon Stephen Jones MP on 23 November 2022.
Once the legislation passes through Parliament, a 30 per cent refundable tax offset will be available to eligible games developers that spend a minimum of $500,000 on qualifying Australian development expenditure, incurred from 1 July 2022.
Ron Curry, CEO of the Interactive Games and Entertainment Association, commented: “By backing and introducing the legislation into Parliament, the Albanese Government has provided certainty and growth opportunities for our highly creative and technically skilled industry.”
Australian game developers have also expressed their excitement about the legislative milestone, and the prospective benefits for the industry:
Tom Crago, CEO, Tantalus
“For Tantalus and for Keywords Australia, the DGTO with turbocharge our growth and expansion. That means more jobs and more videogames developed in Australia, for the global market. Australia has an opportunity to be one of the world’s great hubs for game development. We’re ready to play.”
Blake Mizzi, Director and Co-Founder, League of Geeks
“Games studios are remarkable places where creativity, imagination and cutting-edge technology swirl together into complex experiences every day. These hot houses for talent are also perfect places to breed skills for jobs we don’t even know about today. The DGTO will help us expand Australian studios, hire more staff and cultivate more digital brain power for years to come with flow on effects beyond the sector.”
Joey Egger, Managing Director, Two Moos/DEPT®
“The Digital Games Tax Offset (DGTO) will significantly impact our ability to bring new work streams and grow Two Moos/DEPT®’s specialist family-focused games team. We’re beyond thrilled about the opportunity that the DGTO brings us and the Australian Games industry as a whole. Please expect an outpouring of creativity, excellence, innovation and delightful surprises in years to come – it’s all there, it just needs to surface and the DGTO will help in doing exactly that.”
The offset aims to capitalise on the substantial economic and cultural contributions of Australia’s digital games sector by taking Australia’s talent to the next level, enhancing domestic development opportunities, attracting overseas investment and supporting ongoing digital skills progression.
This skills development will also have flow-on benefits to other sectors, such as defence, health, education, agriculture and urban planning.
You can monitor the progress of the legislation at www.aph.gov.au/Parliamentary_Business/Bills_Legislation/
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