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Federal Budget 2021-22: Gaming innovation and the Digital Games Tax Offset

Federal Budget 2021-22: Gaming innovation and the Digital Games Tax Offset

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.

 

 

The information contained in this blog is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. In all cases, you should consult with a professional advisor familiar with your factual situation for advice concerning specific matters before making any decisions. By reading this blog, you confirm your understanding of this disclaimer.

Toni Eisenhut
Got questions? Speak to our team of experienced tax lawyers today.


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