Federal Budget 2021-22: Gaming innovation and the Digital Games Tax Offset
Tax Law - 12 May 2021
Under the $1.2 billion Digital Economy Strategy, the Government has introduced a new Digital Games Tax Offset (DGTO), looking to attract international investment and encourage the growth of digital game development onshore in Australia.
From 1 July 2022, Digital Game developers with a minimum spend of $500,000 will receive a 30% refundable tax offset capped at $20 million per year for eligible Australian game development expenditure. The new offset is intended to apply to Australian resident companies or Foreign resident companies with a permanent establishment in Australia.
The Government will undertake consultation with industry in mid-2021 to make determinations regarding qualification. It is expected to have a similar application to other industry incentives (e.g. the film industry) and developments focussed on gambling features/elements will not be eligible.
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