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The introduction of Australia’s Digital Gaming Tax Offset is imminent

The long awaited Tax compensation for digital games (DGTO), which will provide a 30% tax reduction for game development projects that reach a spending threshold of AUD $500,000has finally been presented to Parliament and will be implemented shortly.

In November 2022, the Australian government passed the Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 in the House of Representatives, and with it, eventually enacted the DGTO.

The DGTO was originally scheduled to come into force on July 1, 2022, after being announced mid-2021 under the then Liberal-National coalition government. With a federal election resulting in a change of government in May 2022, the status of the bill remained unknown for some time, until the the new Labor government finally confirmed its support for tax compensation for digital games in October 2022.

In a statementRon Curry, CEO of Australia’s leading games industry body IGEAsaid: “By supporting and presenting the legislation to Parliament, the Albanian government has provided opportunities for certainty and growth for our highly creative and technically skilled industry.”

“The Australian game development industry has seized this opportunity. Job creation, revenue growth and international investment in game development will enhance and strengthen Australia’s reputation for delivering quality content internationally. In particular, it will create a new generation of creatives 21st Australian tech workers of the century.

“The DGTO, coupled with the many state government digital game funds and rebates, means that Australia has some of the most aggressive gaming industry incentives available anywhere in the world. We expect to see many multinational companies expand their operations in Australia and contribute to a thriving and sustainable game development ecosystem.

The introduction of Digital Gaming Tax Offset follows the Australian Government’s digital gaming funding scheme, called Games: expansion packwhat was set up in March 2022 by Screen Australia.

The Games: Expansion Pack fund provides support for small to mid-size games projects with budgets under A$500,000, while the digital games tax offset will benefit larger studios working on more ambitious projects above this threshold.

The Games: Expansion Pack program has already funded for 4 million Australian dollars of local games projects, with new round of funding now open.

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These two federal programs, in tandem with several pre-existing game funding and tax offset initiatives from state-based creative agencies across the country, will hopefully pave the way for exciting developments across the spectrum of the Australian games industry in the years to come. come.