The Australian Government has recently introduced the Digital Games Tax Offset (DGTO). This initiative provides eligible game developers with a 30% refundable tax offset for qualifying Australian development expenditure starting from 1 July 2022.
What does the DGTO mean for game developers in Australia?
The DGTO offers a valuable opportunity to receive financial support for the completion, ongoing development, or porting of digital games. First of all, applicants must meet certain eligibility criteria. This includes certification by the Arts Minister and a minimum expenditure of $500,000 on qualifying activities. Applicants must be either Australian tax residents or foreign tax residents with a permanent establishment in Australia.
This offset is capped at $20 million per company or group of connected or affiliated companies per income year. Reaching this cap would require approximately $66.7 million in eligible expenditure, which showcases the potential impact and scale of this support for the industry.
Read more on the official ATO’s website.
Consult your Chartered Tax Advisor about the Digital Games Tax Offset
If you are a game developer or part of a game development company, you should stay updated about the eligibility criteria and application for the DGTO. However, to maximise benefits of the Digital Games Tax Offset, we recommend you seeking professional advice from a tax advisor. Book your appointment with BTMH.