Game on: Digital Games Tax Offset to transform Australian industry
The Albanese Labor Government is backing in the digital games sector by introducing legislation to establish a Digital Games Tax Offset in the coming months.
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.
Minister for the Arts, Tony Burke, said the Offset will promote the growth of Australia’s digital games development industry and increase our market share in the rapidly expanding global sector.
“From The Hobbit back in the 1980s right up to Unpacking – Australian developers have a proud history, and we want to nurture that well into the future,” Minister Burke said.
“Nearly ten years ago as Arts Minister I established dedicated funding support for the work that digital games developers do, through Screen Australia.
“Australia’s developers are significant storytellers and I want to support them for the next ten years and beyond.
“We’re committed to incentivising the industry’s growth here in Australia, and this Offset will enable us to continue building a strong games and interactive entertainment sector, which supports sharing culturally significant stories through creative vision.”
The global video games industry is the largest creative industry in the world, worth approximately $250 billion.
In Australia, game development studios generated $226.5 million of income and employed 1,327 fulltime workers in 2020-21.
The legislation will form part of the Income Tax Assessment Act 1997, which already provides incentives to the screen sector.
The Albanese Labor Government will continue to consult with the industry as part of the development of a new National Cultural Policy – the first in close to a decade.
For more information, visit: www.arts.gov.au/what-we-do/screen/digital-games