MEDIA RELEASE - Digital Games Tax Offset – Better Late than Never

Digital Games Tax Offset – Better Late than Never

‘Labor has taken too long to confirm that it will be proceeding with the digital games tax offset – but better late than never,’ said Shadow Minister for the Arts Paul Fletcher.

Labor confirmed today that it will take forward the Coalition’s work on implementing the digital games tax offset (DGTO), delivering a vital boost to Australia’s digital games sector.

‘The decision to implement a 30 per cent DGTO was announced by the Coalition in the May 2021 budget.  Following extensive industry consultation, in March 2022 we released draft legislation and explanatory material to implement the new DGTO.

‘At last, Arts Minister Burke has confirmed Labor will proceed with the DGTO.

‘His media release does not explain why it has taken more than five months to provide this confirmation.

The Coalition had committed that the DGTO would take effect from 1 July 2022.  Minister Burke’s media release is silent as to the commencement date and this must be clarified urgently,’ Mr Fletcher said.

Globally digital games are a $250 billion sector. Australia is underweight in its share of global digital games production activity, particularly compared to countries like Britain and Canada. 

The DGTO will boost the Australian digital games sector, catalysing additional activity and investment, including from global businesses looking to expand their production activity in Australia. 

Australia already has great digital games developers like Mighty Kingdom and Not Doppler.

There is also considerable complementarity between the digital games sector and the animation and special effects sectors, where Australia has a strong presence with businesses like Animal Logic and Rising Sun.

All these factors mean that we can expect significant growth in Australia’s digital games sector once the DGTO is in place.

Media Contact- Jack Abadee 0403440099