MEDIA RELEASE - RESPAWN NEEDED ON DIGITAL GAMES TAX INCENTIVE

PAUL FLETCHER MP

Shadow Minister for Science and the Arts

Shadow Minister for Government Services and the Digital Economy

Manager of Opposition Business in the House

MEDIA RELEASE

18 October 2022

RESPAWN NEEDED ON DIGITAL GAMES TAX INCENTIVE

A key tax incentive to create jobs and economic opportunities in one of the world’s biggest digital industries has been left to gather dust under the Albanese Labor Government, stalling job growth and Australia’s ability to compete in the international market, Shadow Minister for the Digital Economy, Paul Fletcher said today.

“The Digital Games Tax Offset (DGTO) was developed under the Coalition Government’s Digital Economy Strategy to strengthen the domestic digital games industry, increase employment opportunities and enhance our competitiveness in the rapidly expanding global market,” Mr Fletcher said.

“Operating as a 30 per cent refundable tax offset for eligible business with a minimum of $500,000 on Australian development spending for qualifying game development, it has the potential to drive future growth and create jobs in an industry that is attracting significant numbers of young Australian workers.

“It’s inexplicable that Labor, having talked big on the digital economy for years in opposition, haven’t bothered to implement the offset. Every day of delay is a day a job in the games industry goes somewhere else.

“It has rightly puzzled the industry, with the Interactive Games and Entertainment Association already warning Labor’s stall is holding up significant new investment and jobs from businesses that will set up here once the offset is in place.

“Minister Burke and his colleagues with responsibility for this measure clearly have little influence on the budget process or little inclination to fight on behalf of Australian gaming jobs, otherwise Labor would have moved on this by now.

“This is just the latest Albanese Labor Government failure on the digital economy, following from their decision to impose union driven policies upon the tech industry and ignoring the need to address urgent skill gaps in tech through skilled immigration. “Labor’s refusal to implement something as self-evidently beneficial as the DGTO to assist our tech sector prosper and create more Australian jobs will only harm confidence in our ability to attract the investment this industry needs,” Mr Fletcher said.

Further information: Jack Abadee 0403 440 099