If you are in the business of developing digital games, then you could be eligible for the new digital games tax offset (DGTO). Read our article to find out more, including answers to FAQs.
What is the digital games tax offset (DGTO)?
The DGTO is a 30% tax offset for eligible business expenditure on digital game development in Australia. It was introduced for the first time in the 2022/23 financial year.
What are the eligibility requirements?
To be eligible for the DGTO, you must be either:
- an Australian company with an Australian business number (ABN) or
- a foreign resident company with an Australian base and ABN.
In addition, you must:
- have one or more DGTO certificates outlining your qualifying Australian development expenditure (QADE) for the financial year you wish to claim the offset.
- claim the offset in your company tax return.
How do you apply for a DGTO certificate?
You can apply for a DGTO certificate online. There are 3 types of certificates available:
1. a completion certificate (if you finish developing a new digital game).
2. a porting certificate (if you port a digital game to a new platform).
3. an ongoing development certificate (if your digital game development is ongoing).
Is there a DGTO cap?
Yes, the maximum offset you can claim in any single financial year is $20 million.
How we can help
Our R&D specialist can assist with the submission of the DGTO grant, and other government grants available, by assessing your eligibility and providing assistance with the preparation and lodgement of the application.