The Federal Budget Includes Tax Offsets For Video Game Developers
The Federal Budget includes a refundable tax offset for developers of video games. The offset is available for businesses that spent a minimum of half a million dollars to qualify, and the games cannot have gambling elements.
From the Digital Economy website:
“The Government will introduce a 30 per cent refundable tax offset for eligible businesses that spend a minimum of $500,000 on qualifying Australian games expenditure. This tax offset will make Australia an attractive destination for digital talent. Consultation with industry in mid-2021 will inform the criteria and definition of qualifying expenditure to support the development of digital games. Games with gambling elements or that cannot obtain a classification rating will not be eligible.
The tax cuts will be available from 1 July, 2022 to “Australian resident companies or foreign resident companies with a permanent establishment in Australia.”
Ron Curry, CEO of the Interactive Games and Entertainment Association, has welcomed the announcement.
“The Government’s new investment commitment today will do many things. It will spur the creation of brand new Australian game development studios, give existing Australian studios the support they need to take on ambitious new projects and accelerate their growth, plus attract further blockbuster AAA studios to Australia, all of which will create game development jobs in every state.”