NSW Digital Games Rebate

Purpose and Program Overview

NSW Digital Games Rebate, offered by Screen NSW, is a catalyst for the rapid expansion of the digital games sector in New South Wales (NSW). This program is designed to empower NSW-based game companies not only to compete but also to excel on the international stage, attract significant investment, and create a wealth of employment opportunities within the state.

A key objective is to encourage international and interstate developers to establish studios or collaborate on projects within NSW. The grant also promotes investment in skills development and infrastructure, working to attract and retain talent in the region.

Key Grant Details

• Grant Amount or Funding Range: The rebate is 10% of eligible Qualifying NSW Expenditure, which includes all direct costs incurred in NSW for the development and production of the game. The minimum funding amount is AU$35,000, based on a minimum spend of AU$350,000.
• Application Open and Close Dates: Applications opened for FY24/25 on 28 February 2025. Applications for FY25/26 close on 30 June 2026.
• Eligible Industries or Business Types: This program is open to all digital game development companies based in NSW, as well as international and interstate developers who engage NSW-based game developers. All entities that share the same vision for the growth and prosperity of the digital games sector are welcome.
• Required Co-contributions: Not explicitly stated as a co-contribution, but the rebate is a percentage of expenditure, implying the applicant covers the initial spend.
• Location/State/Territory Applicability: New South Wales, Australia.

Priority Sectors

The NSW Digital Games Rebate grant targets the digital games sector. It is not open to a broad range of industries.

Funding Scope

• Minimum and Maximum Amounts per Stream: The minimum qualifying expenditure for a single eligible game is AU$350,000 in NSW to receive a minimum rebate of AU$35,000. There is no stated maximum rebate amount.
• Categories or Streams of Funding: The rebate is for eligible digital game production expenditure.

Project Timeline or Eligible Funding Duration: The qualifying expenditure can occur over a maximum of three years. Claims must be submitted within six months of project completion, and all claims must be made within three years of the Provisional Letter, a document issued upon successful application that outlines the conditions and timeline for the rebate.

Eligibility Criteria

• Business Structure or Size: Applicants must have an Australian Business Number (ABN). The applicant must be the company carrying out or responsible for arranging all NSW activities related to game production.
• Registered Business Location: The applicant can be a wholly or partly NSW-based digital game development company or an international/interstate developer engaging a fully or partly NSW-based game developer.
• ABN/GST Status: Applicants must have an Australian Business Number (ABN).

Eligible Activities and Expenses

The grant supports expenditure on activities carried out in NSW related to the production of the first public release version or a significant update of a game. Eligible expenditures include:

• Salaries and associated payments for NSW resident employees and independent contractors (e.g., developers, engineers, designers, artists, animators, writers, performers, music, sound design, and in-house community managers).
• NSW workers’ compensation payments and payroll tax.
• Payments to NSW-based suppliers.
• Acquisition or licensing of additional material where copyright is held by a NSW resident or supplier (limited to 20% of Qualifying NSW Expenditure).
• Testing and marketing costs up to the first public release.
• Work associated with the first public release or major update, including platform porting and game development services.
• A limited amount of post-launch development and live services in the year following release.

General Overheads (limited to 10% of Qualifying NSW Expenditure) such as depreciation of assets used in production and attributable rent, rates, utilities, and business expenses related to production (insurances, legal, accounting, auditing) are considered as part of the qualifying expenditure.

Assessment Process

The NSW Digital Games Rebate grant is entitlement-based and non-competitive, ensuring a fair and transparent process. The rebate, although discretionary, is subject to the availability of funds. Applications are assessed against clear criteria, providing a level playing field for all applicants.

• Project Merit: The track record of the applicant and team, including company history and experience of confirmed team members.
• Strategic Alignment: Economic and employment impact (estimated Qualifying NSW Expenditure, number of NSW practitioners), and skills development and infrastructure (training, skills, career development opportunities, expansion of facilities, new capital expenditure, research and development, knowledge transfer, number of upskilled/trained NSW practitioners).
• Value for Money: Project viability, including a detailed development and budget plan, and evidence of full financing or ability to finance.
• Other relevant factors and risks, such as the applicant’s management and any potential reputational risks.

Recent Program Updates

A limited six-week exemption period from 28 February 2025 to 11 April 2025 allows new applications to include eligible expenditure incurred on or after 16 October 2024. The minimum Qualifying NSW Expenditure threshold for new applications is AU$350,000, reduced from AU$500,000 for applications registered before 28 February 2025.

Application Tips

Consider these points for your application:

• Double-check all eligibility criteria carefully before submitting your application.
• Prepare key documents in advance, such as your detailed development plan and budget.
• Align your proposal with the NSW Government’s priorities for growing the digital games sector.
• Demonstrate your team’s capability, the project’s expected outcomes, and the benefits for the NSW government.

Where to Get Help for the NSW Digital Games Rebate

Consider consulting with a professional grant specialist, such as Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit relevant government websites for application templates and further guidance.