In June 2023, Treasury Laws Amendment (2022 Measures No 4) Bill 2022 was passed to enact the digital games tax offset (DGTO).
The DGTO initiative was proposed by the former government as a refundable offset for Digital Games, to strengthen the digital games industry and develop local capability.
The Digital Games Tax offset only applies to a company that:
Restrictions apply to deny eligibility for games related to a gambling service, games refused classification and other issues.
The DGTO provides a 30% refundable tax offset for eligible businesses that spend a minimum of $500,000 on qualifying Australian development expenditure related to the development of eligible games from 1 July 2022.
Noted within the draft is a list of Specific Exclusions, which has clarified that there is not a crossover with the R&D Tax Incentive:
Such exclusions were anticipated.
The DGTO may however allow companies to access a tax offset for expenditure that does not qualify under the R&D Tax Offset.