Game developers welcome new tax offset

Game developers are celebrating the introduction of a new tax bill which will see huge tax incentives for big developers

Australian games industry association IGEA (Interactive Games & Entertainment Association) has announced widespread approval among game developers over a new tax bill introduced to parliament today.

The Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 was introduced into parliament by the Albanese Government today, and includes the Digital Games Tax Offset (DGTO). The DGTO offers a 30% tax offset to Australian game developers with projects costing $500,000 or more, a huge boon for local development teams working on large games.

IGEA has championed the new bill, saying that it will be a huge boon to existing and prospective developers in Australia. Picture: IGEA

IGEA CEO Ron Curry praised the move in a statement on the IGEA website, saying that the tax offset, which has received bipartisan support, would create new jobs, deliver revenue growth, and encourage international investment in Australian games development.

“The Australian game development sector has embraced this opportunity,” Curry said, “The job creation, revenue growth and international investment in game development will further cement and enhance Australia’s reputation for delivering quality content internationally. In particular, it will create a new generation of creative 21st century Aussie tech workers.”

Game developer Tantalus CEO Tom Crago noted that the offset provides Australia with an opportunity to be “one of the world’s great hubs for game development”. It’s expected that the DGTO will attract international developers to Australia, and could encourage major publishers such as Sony, Ubisoft, and Embracer to open up shop in the country.

The bill featuring the DGTO is expected to pass through the House of Representatives unopposed, after which it will head to the Senate, where IGEA hopes it passes swiftly and without issue.

The Legend of Zelda: Skyward Sword HD was developed by Tantalus, a Melbourne-based developer who was recently acquired by Keywords. Picture: Nintendo

Australian games have been making waves internationally lately, with an Aussie game picking up a coveted Golden Joystick award overnight. Cult of the Lamb, developed by Melbourne-based studio Massive Monster, scored the Best Indie Game award at the show, widely considered one of the most prestigious awards in the games industry.

It stands to pick up another award for Best Indie next month, after nominations were revealed for the 2022 Game Awards. While many of the nomination categories are dominated by FromSoftware’s Elden Ring, Cult of the Lamb stands a good chance of taking home the trophy for the indie category.

Written by Oliver Brandt on behalf of GLHF.