10 example R&D Tax Incentive Core Activities for Australian Game Development Studios

This post first appeared on LinkedIn here.

Hey everyone! Let's explore 10 examples of potential R&D Tax Incentive core activities for your creative games or film studio.

Remember - the FY24 R&D Application deadline is April 30th!

If you enjoy that extra reading, below are 10 detailed points on eligible Core R&D Activities in Game Development:

1. Developing New Rendering Techniques: Experimentation with novel algorithms or methods to improve rendering efficiency, realism, or performance in game engines.

2. Physics Simulation Enhancements: Designing and testing new physics simulation methods to enhance realism or performance, such as more accurate collision detection or fluid dynamics simulations for in-game environments.

3. AI Behaviour Experimentation: Developing new artificial intelligence algorithms or systems to improve NPC (non-player character) behaviour, learning capabilities, or decision-making processes, aiming for more dynamic and realistic interactions.

4. Procedural Generation Techniques: Researching and developing advanced procedural generation algorithms for creating game levels, landscapes, or content dynamically, aiming to increase variety and reduce manual content creation time.

5. Networking and Multiplayer Improvements: Conducting experiments on new networking protocols or architectures to enhance multiplayer gameplay experience, reduce latency, or improve scalability and performance in distributed game environments.

6. Audio Processing Innovations: Designing and testing novel audio processing techniques to achieve more immersive soundscapes or spatial audio in games, including 3D audio and environmental sound simulation.

7. Virtual and Augmented Reality Experiences: Experimenting with new methods or technologies to improve virtual reality (VR) or augmented reality (AR) experiences in gaming, such as enhanced haptic feedback, motion tracking, or integration of real-world physics into virtual environments.

8. Gameplay Mechanics Innovation: Researching and developing new gameplay mechanics or systems that offer a novel user experience, including unique control schemes, interaction models, or game design concepts.

9. Advanced Character Animation: Testing and implementing new techniques for character animation, such as using machine learning for more realistic motion capture data processing or developing new rigging methods for more expressive character movements.

10. Optimisation for Emerging Hardware: Experimenting with optimisation techniques for games on emerging hardware platforms, including new generation consoles, mobile devices, or cloud gaming platforms, to improve performance or graphical fidelity.

Disclaimer: It is important to note that while these ideas provide a good starting point for exploring R&D Tax Incentive core activities, it's crucial to ensure that your work precisely aligns with the legislative definitions and requirements under tax law. These examples are intended to inspire and guide your preliminary considerations, but thorough verification against the actual tax provisions is essential to confirm eligibility.