Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 15/34)
Character Range: 5374065–5377307

Subdivision 378‑B.
 (4) The *Arts Minister must give the company written notice of the determination (including reasons for the determination).

Subdivision 378‑B—Qualifying Australian development expenditure

Table of sections
378‑35 Development expenditure
378‑40 Qualifying Australian development expenditure
378‑45 Expenditure incurred by prior companies in completing or porting a digital game
378‑50 Expenditure to be worked out excluding GST

378‑35  Development expenditure
 (1) A company's development expenditure on a *digital game is expenditure that the company incurs in, or in relation to, the development of the game.

Specific inclusions
 (2) Without limiting subsection (1), the following expenditure of the company in relation to the *digital game is development expenditure on the game:
 (a) remuneration provided to persons (including independent contractors but excluding persons of a kind referred to in subsection (5)) who perform work or services directly for the company that are attributable to the development of the game, including the following:
 (i) project managers and artistic, creative and design directors;
 (ii) game designers;
 (iii) software developers and programmers;
 (iv) engineers (including for audio, graphics, physics and software);
 (v) user experience designers and testers;
 (vi) behaviour analysts;
 (vii) quality assurance testers;
 (viii) writers;
 (ix) artists, animators and performers (for music, voice and motion capture);
 (x) songwriters, composers, musicians and sound designers;
 (xi) persons performing roles that are broadly similar to those described in subparagraphs (i) to (x);
 (b) expenditure on research for the game;
 (c) expenditure on prototyping for the game;
 (d) expenditure on underlying game infrastructure (for example, game engines and anti‑cheating controls);
 (e) expenditure on user testing, debugging and collecting user data for the game;
 (f) expenditure on updating the game;
 (g) expenditure on obtaining or maintaining a classification under the Classification (Publications, Films and Computer Games) Act 1995;
 (h) expenditure on adapting the game for use on particular platforms.

Specific exclusions
 (3) Despite subsections (1) and (2), the following expenditure of the company in relation to the *digital game is not development expenditure on the game:
 (a) the company's general business overheads including, for example:
 (i) expenditure incurred in relation to insurance, audit services, accounting services, human resources, recruitment services and legal services; and
 (ii) expenditure on travel, accommodation, catering, entertaining or hospitality; and
 (iii) expenditure on visas or work permits; and
 (iv) expenditure incurred by way of, or in relation to, the financing of the game or company;
 (b) expenditure on, or in connection with, the following persons:
 (i) employees and independent contractors whose roles are not related to, or are incidental and not directly attributable to, the development of the game (including for example, administrative employees, social media managers, sales and marketing professionals, community managers and forum administrators and moderators);
 (ii) employees and independent contractors who were