The Digital Games Tax Offset: A Game Changer for Australian Game Developers

Are you actively engaged in the digital game development sector within Australia? If so, there's exciting news that could significantly impact your business expansion efforts. The Digital Games Tax Offset (DGTO) has been introduced to allow companies within the digital gaming industry to reclaim 30% of their qualifying development expenditure, with a cap set at $20 million per company per income year.

 If this is down your alley, we invite you to keep reading to explore what the DGTO is, who is eligible for it and how it can benefit game-developing companies.

Understanding the Digital Games Tax Offset (DGTO):

We all know that understanding Tax offsets is not particularly easy, but don’t worry we are here to put it in simple words for you. The DGTO is an initiative that allows businesses in the digital gaming industry to reclaim a substantial portion of their qualifying Australian development expenditure (QADE) when lodging their Tax Return.

What can you claim?

Eligible companies can claim a remarkable 30% of their qualifying Australian development expenditure (QADE) as a tax offset. In simpler terms, this means that a significant part of the money invested in developing games can be returned to you through the DGTO.

Eligibility Criteria:

To leverage the DGTO’s benefits, your company needs to meet specific eligibility criteria. Whether you’re an Australian resident company with an Australian Business Number (ABN) or a foreign resident company with a permanent establishment in Australia and an ABN, you are eligible to explore the advantages offered by the DGTO.

Ministerial Certification:

The DGTO takes effect when you receive a certificate from the Minister for the Arts. This certificate serves as an official confirmation of your eligibility and outlines the qualifying Australian development expenditure (QADE) for the relevant income year. This is a crucial step that sets the stage for you to access the financial rewards provided by the DGTO.

Scope of Benefits:

The DGTO covers qualifying Australian development expenditure (QADE) incurred on or after July 1, 2022. What’s particularly enticing is that you can claim benefits up to a cap of $20 million per company per income year. This cap applies not only to individual companies but can also extend to affiliated or connected groups. This represents a substantial opportunity to reap the rewards of your dedicated efforts, especially for larger game development companies.


The Digital Games Tax Offset (DGTO) is a game changer for the Australian digital gaming industry. It offers substantial financial benefits to eligible companies, allowing them to reclaim 30% of their qualifying Australian development expenditure. Whether you’re a local company or a foreign entity with a presence in Australia, the DGTO can significantly boost your financial prospects.

Don’t miss out on this incredible opportunity to boost your game development endeavours. With the cap set at $20 million per company per income year, the DGTO represents a major incentive for game developers to continue pushing the boundaries of innovation in the digital gaming industry. Are you ready to level up your game development business with the DGTO? Contact our team to make your DGTO journey an ease and assist you in taking the necessary steps to claim these benefits.