The Albanese Labor Government has delivered a boost to the digital games sector with legislation to establish a Digital Games Tax Offset (DGTO) passing through the Parliament.
The DGTO offers a 30 per cent refundable tax offset to eligible games developers that spend a minimum of $500,000 on qualifying Australian development expenditure.
Minister for the Arts, Tony Burke, said the legislation is the first of its kind for the industry.
“This is a game changer for Australia’s digital games industry,” Minister Burke said.
“Australian game developers have a proud history going back decades, and this measure will support them – and the next generation – for years to come.”
“Empowering local storytellers and engaging audiences is key to Revive, Australia’s new National Cultural Policy. This measure does both.”
Interactive Games and Entertainment Association CEO, Ron Curry, said the changes would make a significant difference.
“Alongside the entire Australian video games industry, we celebrate the passage of the DGTO legislation and thank the federal government for their support,” Mr Curry said.
As part of the Government’s National Cultural Policy, Revive: a place for every story, a story for every place, the digital games industry is also being supported through $12 million to Screen Australia – to increase investment and support for digital games developers and small and medium independent games studios.
The DGTO will be administered by the Office for the Arts and the Australian Taxation Office (ATO), and forms part of the Income Tax Assessment Act 1997.
Further guidance, information and details about how to apply will be made available on the Department of Arts website.
