Qualifying NSW games expenditure must be on activities carried out in NSW related to production of the launch version of the game. The pre-development stage, being activities that are usually undertaken with the aim of determining whether a digital game is commercially feasible, is excluded.
The following expenditures qualify for the Rebate:
- Salaries and associated payments employees and independent contractors including developers, designers, artists, animators, writers, performers, music, sound design. (Interstate or overseas personnel must remain in NSW and work on the project in NSW for at least two consecutive calendar weeks for expenditure attributable to their stay to qualify for the rebate. Each visit is considered separately).
- NSW workers compensation payments and payroll tax
- Payments to suppliers whose principal place of business is in NSW or that have an office or branch in NSW that is supplying the goods or services
- Acquisition/licensing of additional material, such as music, used in the game where the material is NSW-held copyright or created by an NSW supplier. (These fees will generally be limited to 20% of qualifying NSW expenditure.)
- Testing and marketing costs up to the public launch (including in house marketer salaries, trailer, convention registration). A limited amount of post-launch development and live services, including patches and updates, may be claimed in the year following the launch.
- Depreciation of assets, to the extent the assets are used in the production of the game
- Attributable rent, rates and utilities
- Business expenses that relate to the production of the game such as some insurances, legal, accounting and auditing expenses.
The following expenditure is specifically excluded:
- Capital expenditure
- Hosting and distribution costs
- Payments for activities or services undertaken outside NSW
- Expenditure on international or interstate travel or freight
- Deferred fees which are payable out of future revenue or profits
- Payments to service providers which are offset by a reinvestment or any other financial contribution to the project
- Any expenditure that precedes the date of application for registration
- Expenditure prior to 1 October 2021
Where production of the game commenced prior to 1 October 2021, eligible expenditure that occurs after 1 October 2021 is eligible provided that it meets the minimum threshold of $500,000.
The expenditure must be incurred by the applicant. Transactions with interested or related parties must be on an arms-length basis.