IGEA delighted with the Australian Government’s strengthening of the DGTO
IGEA is delighted by the Australian Government’s announcement today, as a part of its Mid-Year Economic and Fiscal Outlook (MYEFO), that it will provide an additional $19.6 million over two years to expand the Digital Games Tax Offset (DGTO) to specifically include ‘live ops’, or games as a service projects.
The announcement, jointly made by the Arts Minister, the Hon Paul Fletcher MP, and the Digital Economy Minister, Senator the Hon Jane Hume, expands the previously announced DGTO, making Australia an even more attractive and competitive destination for international game development companies.
Ron Curry, CEO of IGEA, notes that video games development is a leading technology industry with transferable digital capabilities that can help supercharge the Australian economy. ‘Live ops’ is a significant contributor to the video games industry’s high potential, with many Australian-made games able to generate substantial export revenues even years after their first release.
Curry stated, “We are delighted to see the Federal Government double down on its commitment to the video games sector and expand its offering to game developers as part of its Digital Economy Strategy. The confidence and certainty this provides to Australian video games businesses are immediately vital to the local sector as they strive to meet the growing global demand for video games and video games technology.
“Our thanks go to Minister Fletcher and Minister Hume and their teams – especially the Office for the Arts – for leading a productive and effective consultation process for the DGTO alongside IGEA and numerous Australian and global game development studios. This announcement highlights that the Government is not only listening to industry, but it is prepared to make adjustments to ensure that the incentive is fit-for-purpose and globally competitive. We look forward to consultation on exposure draft legislation in the new year.”