Feeds

Aus gaming and ICT get R&D tax boost

AUD$1.8m tax credit for innovators

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Australia may increase its international competitiveness as a gaming and ICT development hub following a new R&D tax incentive passed by the Federal government.

From July 1 an AUD$1.8 billion R&D Tax Credit comes into effect for innovative industries including manufacturers, ICT and biotech.

It will deliver a 45 percent refundable tax credit to companies with an aggregated turnover of less than $20 million and a 40 percent non-refundable offset to all others.

Following multi-party discussions, the Government will introduce quarterly payments for small and medium businesses from 1 January 2014. These firms will get their credit sooner, significantly improving their cash flow and incentive to invest in R&D.

An advisory group will be established through the Innovation Australia Board to monitor the implementation and operation of the Credit. The Game Developers’ Association of Australia (GDAA) welcomed the introduction of the R&D Tax Bill.

“Innovation is at the heart of game development and the introduction of the new legislation not only assists in leveling the global competitive playing field, but also affords the local industry the opportunity to challenge traditional gameplay conventions,” said Antony Reed, CEO of the GDAA.

The Government, via AusIndustry, will run an extensive awareness campaign to ensure firms are kept up to date.

According to Ron Curry, the CEO of the Interactive Games and Entertainment Association, global game publishers have already shown interest in the Australian marker in the expectation of the R&D tax reform. “The games industry is already a major contributor to the GDP’s of a number of international territories and the introduction of the legislation could well put Australia on the same path,” he said. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.