The Queensland government has announced it will expand its Post-Production, Digital, and Visual Effects (or PDV) Offset to include digital games alongside filmmakers working on post-production and post-visual effects within the state. The rebate will come into effect in July 2022.
Queensland Premier Annastacia Palaszczuk said that the 15 per cent rebate for video game projects aims to attract more local, interstate and international games developers and studios to open up shop in Queensland.
“My Government’s Post-Production, Digital and Visual Effects (PDV) incentive is the most competitive on Australia’s eastern seaboard and is already a success, drawing screen productions here which create jobs for hundreds of our state’s screen experts,” said Paluszczuk.
“By adding this new games’ incentive, local and international studios will be further motivated to outsource the creation of valuable game titles to Queensland, while our own locally based developers will be supported to create original games content right here.”
Among the changes is a lowering of the threshold required to access the PDV program and a reduction of the cost barrier of production from AU$500,000 to AU$250,000. The thinking behind this change is that it will offer a more level playing field for both smaller developers and larger studios alike to access the offsets.
Queensland becomes the third state in the last two years to announce a tax rebate or offset for game developers. NSW announced a 10% offset with a threshold of $500,000 in September this year, and South Australia announced a 10% rebate with a threshold of $250,000 in June 2020.
IGEA, the Independent Games and Entertainment Association, has thrown its support behind the decision. “Queensland has a history of developing world-renowned video games and is home to some amazing and well-known game development studios such as Gameloft, Witch Beam, Halfbrick, 5 Lives Studios, Disparity Games and Toast VR,” said IGEA CEO Ron Curry in a press release.
“This new game incentive, coupled with the Federal Digital Games Tax Offset to be introduced in July 2022, will ensure that Queensland will see a surge in employment and economic return for those companies creating games and game related technologies.”
“Further to that, we expect to see increased investment from international game studios looking to establish a base in Australia, with Queensland now potentially set to become one of the most attractive places for game development anywhere in the world.”