Income Tax Assessment Act 1997
View history note
Hide history noteA company ' s qualifying Australian development expenditure on a *digital game is the company ' s *development expenditure on the game to the extent to which the expenditure: (a) satisfies subsection (2) ; and (b) is incurred for, or is reasonably attributable to, goods and services provided or acquired in Australia.
The relevance test
378-40(2)
An item of a company ' s *development expenditure on a *digital game: (a) if the item of expenditure is substantially attributable to developing the game - satisfies this subsection in full; and (b) if the item of expenditure is not substantially attributable to developing the game - satisfies this subsection to the extent that the expenditure is attributable to developing the game.
Expenditure that does not qualify
378-40(3)
For the purposes of a *digital game in respect of which a company applies for a certificate under subsection 378-25(1) (completion certificate), an item of the company ' s *development expenditure on the game is not qualifying Australian development expenditure to the extent it is incurred after the earliest of the following: (a) the day on which the game is *completed; (b) the day on which the company applies for the certificate; (c) the day on which the game has been available to the general public for the purposes of conducting testing for one year.
378-40(4)
For the purposes of a *digital game in respect of which a company applies for a certificate under subsection 378-25(3) (porting certificate), an item of the company ' s *development expenditure on the game is not qualifying Australian development expenditure to the extent it is incurred after the earlier of the following: (a) the day on which the game is *ported; (b) the day on which the company applies for the certificate.
378-40(5)
You cannot count the same expenditure as *qualifying Australian development expenditure for the purposes of more than one certificate under section 378-25 .
Example:
Expenditure on porting a digital game that is claimed as qualifying Australian development expenditure for the purposes of a certificate under subsection 378-25(3) (porting certificate) cannot be claimed for the purposes of a certificate under subsection 378-25(5) (ongoing development certificate).
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