Video games developed in New South Wales will soon be eligible for the state government's 10% post, digital, and visual effects (PDV) tax rebate.
Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres said in a statement that the PDV rebate, which is currently available for the local film industry, would be extended to the digital games sector from October 1.
He believes the move would help give a boost to the local sector while also ramp up export potential.
"Our world-renowned universities and technical talent were already drawcards for the industry, and this incentive is the level-up that will make NSW the most desirable place for digital games companies to set up and export to the world," he said.
"As an export-focused sector, this initiative will help NSW-based digital games developers showcase their skills and innovation to a global audience. It will also help them create more jobs as they look to take on the world in this highly competitive industry."
The rebate will continue to be managed by Screen NSW, with guidelines around eligibility to be published on its website in the coming days.
Currently, for the film industry to qualify for the rebate, projects must be registered with Screen NSW, and only be undertaken after the date of registration. A project must also spend at least AU$500,000 on qualifying expenditure in NSW related to post, digital, and visual effects activities.
The NSW incentive is in addition to the federal government's introduction of a digital games 30% tax rebate back in May.
Available from 1 July 2022, the federal tax incentive is available for local and international businesses that develop digital games in Australia and spend a minimum of AU$500,000 on qualifying Australian games expenditure.
In addition to the digital games tax offset, the Australian Government will allow taxpayers to self-assess the effective life of depreciating intangible assets, including patents, registered designs, copyrights, and in-house software.