Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 9/34)
Character Range: 5359150–5362078

of production by the Australian independent production sector compared to levels of production by Australian television broadcasters.

Division 378—Digital games (tax offset for Australian expenditure on digital games)

Table of Subdivisions
 Guide to Division 378
378‑A Tax offset for Australian expenditure in developing digital games
378‑B Qualifying Australian development expenditure
378‑C Certificates for digital games tax offset
378‑D Review and other matters

Guide to Division 378

378‑1  What this Division is about

      Companies may be entitled to a refundable tax offset in relation to qualifying Australian development expenditure incurred in completing or porting a digital game, or carrying on ongoing development of digital games in an income year.
      This offset is designed to support the growth of the digital games industry in Australia by providing concessional tax treatment for Australian expenditure.
      One of the requirements for entitlement to the digital games tax offset is that the company must be issued with a certificate in respect of the completion, porting or ongoing development of a digital game. The certificate specifies the amount of qualifying Australian development expenditure determined by the Arts Minister in respect of the completion, porting or ongoing development of the digital game.
      The amount of the refundable tax offset for an income year for a company is up to 30% of the sum of the determined totals of qualifying Australian development expenditure specified in certificates issued to the company for the income year.

Subdivision 378‑A—Tax offset for Australian expenditure in developing digital games

Table of sections
378‑10 Company entitled to refundable tax offset for Australian expenditure incurred in developing digital games
378‑15 Amount of digital games tax offset
378‑20 Meaning of digital game
378‑25 Arts Minister must issue certificate for the digital games tax offset
378‑30 Arts Minister to determine a company's qualifying Australian development expenditure for the digital games tax offset

378‑10  Company entitled to refundable tax offset for Australian expenditure incurred in developing digital games
 (1) A company is entitled to a *tax offset under this section (the digital games tax offset) for an income year if:
 (a) the *Arts Minister has issued one or more certificates to the company for the income year under section 378‑25 (certificate for the digital games tax offset); and
 (b) the company claims the offset in its *income tax return for the income year; and
 (c) the company:
 (i) is an Australian resident that has an *ABN; or
 (ii) is a foreign resident that has a *permanent establishment in Australia and an ABN;
  when the company lodges the income tax return and when the tax offset is due to be credited to the company.
Note: The digital games tax offset is a refundable tax offset: see section 67‑23.
 (2) The