GDSR - Applying, guidelines and resources

Who is eligible to apply for the Game Development Sector Rebate (GDSR)?

The purpose of the GDSR is to support the ongoing development and growth of the game development sector in Aotearoa New Zealand.

The GDSR enables eligible businesses to receive a rebate equal to 20 percent of their eligible game development costs. To qualify, they must spend at least NZD $250,000 within the 1 April to 31 March financial year, with a maximum annual rebate of NZD $3 million.

A business may be eligible to apply for the GDSR if it is a registered New Zealand business with a New Zealand Company Number; or a foreign company that has both a permanent establishment in New Zealand and a New Zealand Company Number. In addition, the business must undertake relevant game development activities within New Zealand.

While the focus of the rebate is predominantly on businesses developing video games, businesses developing digital assets for the games sector may also qualify.

Is the rebate open to individual game developers?

Yes, it is open to individual game developers – just as long as you meet the requirements as laid out in the GDSR Guidelines, including a company number and the $250,000 minimum eligible expenditure threshold for the financial year.

Are there any restrictions to the type of game genre that would qualify?

Yes, there are certain restrictions. The GDSR will not apply to expenditure on digital games that:

• are a gambling service, substantially comprised of gambling. or include game mechanics that allow real money winnings;
• contain material that would be refused classification by Te Mana Whakaatu Classification Office;
• contain pornography;
• are gamified software primarily designed for another purpose (e.g. gamified quizzes, accounting software, corporate training software, software to support business operations);
• are linear content with no or limited interactivity (e.g., a 360-degree movie played on a VR headset);
• are intended for commercial advertising purposes or to primarily commercialise a product, entity or service.

You can find more on these restrictions, as well as what does qualify as an eligible game, in the GDSR Guidelines.

Is there any issue with a satellite studio or subsidiary of a foreign company applying? If the subsidiary was based in New Zealand?

As long as the subsidiary is a New Zealand–registered business, and all remuneration-related expenditure is for employees or contractors domiciled in Aotearoa New Zealand, there would be no issue with the subsidiary applying for the GDSR.

On the financial submission for the GDSR Application – is it necessary to provide audited financial statements?

If your financial statements have been audited then that is great but no, any financial statements you put forward do not need to have been audited.

In terms of a Parent/Subsidiary: is it the parent company that should be the one applying or can the subsidiary apply directly?

The key consideration here is to ensure there is no ‘double dipping’ in expenditure across multiple applications and to direct the rebate to those businesses that are in line with the policy intent of the GDSR – ie. to support the ongoing development and growth of the game development sector in Aotearoa New Zealand. Conceptually, this points to the claimant as a game development studio and not its contractors. It also points to the claimant as a self-standing studio with a Company Number that meets all other factors of eligibility, and not a holding company that has no eligible game development activity of its own. Whichever company best fits this description is the one that should apply – but it can be either the parent or subsidiary.

You will need to provide details on your overall company structure, including any parent companies, as part of your application.

Does the GDSR fund offshore activities for studios with overseas owners?

No, the GDSR only provides a rebate on eligible game development activity undertaken in New Zealand by eligible, New Zealand-based businesses (with a New Zealand Company Number).

The rebate is designed to incentivise businesses to carry out development work locally, including hiring New Zealand-based talent and investing in the domestic games sector. As a retrospective rebate, it applies only to expenditure on eligible activities that have already been performed in New Zealand. Applicants are also required to be registered locally, including holding a New Zealand Company Number.

While some studios may have international ownership and operate or undertake work across multiple countries, any development activity carried out overseas is not eligible for the rebate.

The GDSR is specifically targeted at supporting and growing game development within New Zealand. This is already contributing to sector growth, with GDSR recipients increasing their New Zealand-based employee numbers by 20% between the first and second years of the programme.

Are GDSR recipients typically small, medium or large studios?

The majority of studios supported through the GDSR are small to medium-sized New Zealand businesses.

While a small number of larger studios also receive the rebate, the programme is not solely focused on large companies. The GDSR plays an important role in supporting emerging and mid-sized studios to build capability, gain momentum and scale sustainably over time.

At the same time, larger studios contribute significantly to the broader ecosystem - helping to build workforce capability and support the development of experienced talent. There is also a cap on the amount any one business can receive through the GDSR, which helps ensure funding is distributed more broadly. Together, these settings help support the emergence and growth of new studios and a more resilient and mature game development sector overall.

If our application is declined or some costs are assessed as ineligible, can we discuss the decision and submit an appeal?

Yes, if your application is declined, or you believe some of your claimed costs have been assessed as ineligible in error, you can discuss the outcome with us and, if needed, submit an appeal. Appeals are accepted once GDSR payments have been processed in July and must be lodged by the end of August in the same year. Appeals received outside this window cannot be considered.

To start, you will be provided the opportunity to book a call with the NZ On Air team during the month of August to better understand the decision, talk through the assessment and ask any questions you may have.

If, after that discussion, you would still like to appeal, you may submit a formal appeal in writing. Your appeal should clearly outline the decision you’re challenging and include any additional information or evidence to support your claim.

All appeals are reassessed by NZ On Air between September and November, with a final outcome provided before the end of the calendar year.

If the appeal results in a corrective payment, NZ On Air will request an invoice. Payments are typically made in January, once the audit process has been completed, so any adjustments can be processed together.

Regarding accreditation, is there an expectation to have accreditation both in game credits and on our business’ website, or is it just one or the other? For some games (e.g. mobile free-to-play) we don't always have credits.

To start with, all recipients of the GDSR are required to acknowledge the support of the GDSR scheme through NZ On Air via accreditation.

Accreditation should appear on both your business and game website (if you have one), and somewhere within the game itself. This doesn’t need to be in the credits specifically—it could be in a menu, splash screen or any other appropriate location.

We also understand that for some businesses you may be working with a client whose IP has strict accreditation rules. If that is the case, feel free to contact us—we’re happy to discuss options and find a workable solution.

We also appreciate the challenge of updating live games, especially across multiple platforms. That’s why recipients have up to six months to implement accreditation.

Static and animated logos are available on our website, along with our Accreditation Guidelines. When referring to the scheme in writing, we recommend using the following copy: Supported by the NZ Game Development Sector Rebate.

If you’d like to discuss what might work best for your game or business, please get in touch at gamesrebate@nzonair.govt.nz.

Can I request an extension for my GDSR application?

No, extensions are not generally permitted. However, in exceptional circumstances - such as the death of an immediate family member - you may submit a written request for consideration.

Requests must be made before applications close and will be assessed by NZ On Air on a case-by-case basis.

Please note that the assessment and payment process must still be completed before the Government’s financial year ends in June. This means that any extension granted would be for a short period only.

What happens if two New Zealand studios apply for the GDSR for the same game?
There are a couple of possible outcomes, depending on the nature of the costs being claimed.

If each studio is applying for a clearly different cost base — for example, one studio is claiming costs related to prototyping while the other is claiming costs related to later-stage production — both studios may be eligible to receive a rebate for their separate contributions.

However, where both a client studio and a contracted (work-for-hire) studio submit claims relating to the same cost base for the same game, the GDSR defaults to the client studio. As set out in the GDSR Guidelines, “businesses may not claim expenditures for which another business has already claimed. For clarity, when contractors are engaged, any rebate claim should only be made at the top-most, New Zealand-based company level — for example, the owner of the project, not at the contractor level.”

To avoid confusion, we recommend that work-for-hire studios have a conversation with their client in advance to confirm whether the client intends to apply for the GDSR. If the client does not plan to apply, the contracting studio may submit a claim for its eligible costs.

Does NZ On Air have editorial oversight over games created by GDSR-funded studios?

No, NZ On Air does not have editorial oversight over the content of games funded through the GDSR.

The GDSR is an economic rebate, and NZ On Air administers it within the policy settings established by the Ministry of Business, Innovation and Employment (MBIE). Within this framework, we do not have editorial oversight over game content. Instead, the GDSR is a retrospective rebate focused on whether a business’ expenditure activities performed in New Zealand meet a set of key eligibility criteria.

This includes assessing:

• whether the applicant is an eligible New Zealand-based business (or has a permanent establishment in New Zealand) and holds a New Zealand Company Number
• whether the business is undertaking eligible game development activities
• whether the game meets the definition of an eligible digital game (including interactivity, format and intended public release)

To be eligible, games must be intended for public release and for entertainment or educational purposes, and must not include material that contains pornography or gambling mechanics involving real-money winnings.

Is cultural consultation an eligible expense under the GDSR? 

Yes, cultural consultation is an eligible expense under the GDSR.

Where a game includes cultural elements, studios are encouraged to engage appropriate cultural expertise when their work draws on cultural material. The GDSR supports this in practice by providing a 20% rebate on eligible cultural consultation costs. 

Does NZ On Air assess cultural content in GDSR-funded games?

NZ On Air acknowledges that cultural representation, including the risk of cultural appropriation, is an important and complex topic in game development, and one that deserves careful consideration. We strongly encourage studios to approach cultural content thoughtfully and to engage appropriate cultural expertise where relevant. The GDSR also supports this in practice, by providing a 20% rebate on eligible cultural consultation and related expenditure.

It is important to note that the GDSR is an economic rebate, and NZ On Air operates within the policy settings established by MBIE. Within this framework, we do not have editorial oversight over the content of games, nor a legal mandate to assess or make determinations on cultural representation beyond the eligibility criteria set out in the policy.

Did the Financial Details Template change in 2025?

Yes. In 2025, we used a mandatory template for the first time and overall received very positive feedback from applicants. For upcoming rounds, we have made a handful of further updates to the document aimed at providing additional context for applicants, and to improve the flow of application and assessment.

The Financial Details Template is designed to collect all the necessary information our financial assessors need in order to verify your claim and assess eligible expenditure, and ultimately streamline the assessment process.

What does paid (cash) or incurred (accrual) accounting mean, and how does it affect my application?

GDSR applications can be submitted using either a paid (cash) or an incurred (accrual) basis of accounting.

A paid (cash) basis means your accounting records income and expenses when money is actually received or paid. In other words, costs are counted at the time payment is made.

An incurred (accrual) basis records income and expenses when the economic benefit is received or the obligation arises, rather than when payment occurs. Costs are recognised over the period they relate to, providing a more accurate reflection of business expenditure and performance. For example, an annual software subscription may be paid upfront, but the cost would be recognised monthly across the year the service is used, rather than all at once at the time of payment.

For the GDSR, this means costs incurred must be allocated to the relevant eligibility period of 1 April to 31 March. If a software subscription period sits partly inside and partly outside that window - for example, an annual subscription running from February to February - you would only include the portion of the cost that relates to the months within the eligibility period. The remaining portion would be excluded or included in the following year’s application, as appropriate.

The method used must be declared at the start of the application and future applications should be consistent with that chosen approach. The method must also align with the basis used for reporting to Inland Revenue.

On the Financial Details Template’s ‘eligible expense calculation’ tab, can we list a total amount per software or does each transaction need to be listed in a separate line?

We ask that you include a single line for each transaction, so that our financial assessors can confirm consistency with the data exported from your accounting system, and to break down those costs by transaction if needed. This means that a monthly subscription for a software-as-a-service would likely feature 12 individual lines for each monthly transaction.

Should ineligible expenses be included in the Financial Details Template?

Generally speaking, no. We only need eligible expenditure listed on the eligible expense calculation tab of the Financial Details Template. However, ineligible expenditure still needs to show up on your payroll export and reconcile with the amounts shown in your P&L. If you are unsure whether a cost is eligible, we recommend including it on the expense calculation tab. Our assessors will review every line on this tab and consider any edge cases, so some items you are unsure about may still be accepted, even if you have flagged them as potentially ineligible.

As ACC levies are billed as a lump sum and not broken down by employee, how should they be reported in the Financial Details Template?

If your ACC levies are as a lump sum, we accept a percentage of that lump sum payment equal to the percentage of eligible employee wages. This percentage is reached by looking at the amount of eligible salary (from your salary expense tab) divided by total salary.

Even if similar costs, such as KiwiSaver contributions, bonuses or benefits are calculated automatically through your payroll system, you’ll still need to manually enter the appropriate expenditure and percentages per employee in the ‘Employee and Contractor Calc’ tab of the Financial Details Template as this helps our assessors review your claim more accurately.

How do we treat depreciation when it comes to development expenditure?

Depreciation or amortisation of game development software and hardware is considered eligible expenditure.

If you have capitalised payroll or contractor costs related to Research & Development (R&D), these are only eligible if the actual costs were incurred during the tax year relevant to the rebate claim. However, amortisation of these capitalised costs is not eligible.

For clarity, depreciation on assets other than game development software and hardware is not eligible expenditure.

Any depreciation items must be included in your business' depreciation schedule, even low value assets that can be depreciated fully in any given year.

What counts as Research & Development (R&D) compared to game development - and how do we split this out?

We don’t require a distinction between R&D and game development for the GDSR — both are considered eligible activities.

However, if you’ve received other government funding (such as the R&D Tax Incentive), you must exclude any costs covered by those programmes from your GDSR claim. This is to avoid ‘double dipping’ – claiming the same expenditure under multiple government programmes – which is not allowed.

To ensure compliance, make sure any overlapping costs are identified and, if possible, removed from your GDSR claim. If you’ve removed those costs from the Financial Details Template, feel free to leave a note next to the declared RDTI entry to let us know they’ve been accounted for.

What documentation could an applicant provide to prove their employees or contractors are tax residents of New Zealand?

We don’t require applicants to provide proof that employees or contractors are tax residents of New Zealand.

Instead, we ask that you identify any employees or contractors who are not domiciled in Aotearoa New Zealand in your application.

Please note, a more detailed review may be conducted if your business is selected for audit. Each year, we carry out a random audit of 20% of successful GDSR applicants. If selected, we’ll contact you directly to explain the audit process and any further documentation required.

If a Registered Business applies for the GDSR and other government grants - such as the Research and Development Tax Incentive (RDTI), Centre of Digital Excellence (CODE) or a NZ Film Commission (NZFC) grant - at the same time, but the other grants have not yet been approved at the time the GDSR is approved, do they need to advise NZ On Air?

Yes. It’s important to let us know if you have applied for other government funding, even if it hasn’t been approved yet. You should provide details of the grant(s) and the amount applied for.

This allows us to understand that your GDSR application may be subject to change and ensures transparency about any potential adjustments.

Crucially, this requirement only applies where the other grant(s) relates to the same cost base — meaning the same expenses or the same eligibility period as your GDSR claim. The GDSR can only be claimed on eligible expenditure not already covered by another government grant, to avoid double dipping.

If the other funding relates to costs that fall outside the current GDSR eligibility period - for example, costs that sit within the next financial year - you would declare that funding in the relevant future GDSR application instead.

Does a Registered Business need to advise NZ On Air if they receive other government grants if the grant is unrelated to the GDSR, such as the Māori
Business Growth Support grant for example?

No, we only need to be advised if there is any crossover in relation to the eligible expenditure that is being claimed. If you are at all unsure, please get in touch with us (gamesrebate@nzonair.govt.nz) and we’ll be happy to help.

Is a Registered Business required to engage with a specific accounting firm for the audited accounts?

No, you don’t need to engage a specific accounting firm. If your application is selected for audit, NZ On Air will appoint an independent assurance provider to carry out the review. Our assurance provider will work directly with your finance team or your preferred accountant to complete the process. If your business is selected, we’ll get in touch to step you through what’s involved and answer any questions you might have.

What could a registered business expect from an audit if they are selected? Who conducts the audit and how are businesses selected?

Each year, NZ On Air audits a selection of GDSR recipients. Recipients may be chosen in one of two ways: either through a spot audit at NZ On Air’s discretion or through a random selection process of 20 percent of recipients. In either case, the audit is conducted at NZ On Air’s cost.

If your business is selected, we will contact you - typically around August - to let you know and answer any questions you may have. We’ll also provide a timeframe for the audit, which is usually expected to be completed within three months.

We’ll begin with an onboarding call to walk you through the process and introduce you to the independent assurance provider and relevant team members. The assurance provider will then liaise directly with your finance team or preferred accountant to arrange the review within the agreed timeframe.

As part of the audit, the assurance provider will select a sample of the eligible expenditure your business received the GDSR for. You’ll then have time to gather supporting documentation for those selected items.

This documentation might include:

• Invoices for software expenses
• Employment agreements for your New Zealand-based employees and contractors
• Timesheets or project time-tracking records for certain roles not typically involved in game development, such as a CEO, if time has been claimed for game development activities.

The assurance provider may request further details as needed. NZ On Air will remain available throughout to help guide you through the process and ensure everything runs as smoothly as possible.

Please note, having been audited previously does not exclude a business from being chosen for audit again in the following year(s).

How should a company apportion costs if their year-end is not 31 March (e.g. year-end is 1 Jan to 31 Dec)?

When you are registering for the GDSR, projections for expenditure based on rationale are acceptable. However, please note that in your GDSR application, figures provided must be based on actual expenditure for the eligibility period 1 April-31 March.

If a group has multiple entities in New Zealand, which entity should make the claim? i.e. the top holding company in New Zealand? The entity that holds the IP? The entity that incurs the salary costs? And what if the salary costs are re-charged to another entity?

The key consideration here is to ensure there is no double dipping in expenses across multiple applications and to direct the rebate to the businesses in line with the policy intent of the GDSR. Conceptually, this points to the claimant as a game development studio and not its contractors. It also points to the claimant as a self-standing studio with a Company Number and all other factors of eligibility, and not a holding company that has no eligible game development activity of its own. With that in mind, the entity which should make the claim would be the entity incurring the salary cost, which may also hold the IP.

Should costs be submitted including or excluding GST?

All costs must be submitted excluding GST.

Please note that some international suppliers do not charge GST. In these cases, you should submit the full invoice amount as shown. Take care not to deduct 15 percent from overseas invoices that do not include GST.

If a company is already part-way through developing a game and had previously capitalised equipment costs (equipment used for developing a game) as these costs are amortised to the Profit & Loss (P&L), will they be eligible?

Applicants may claim for game production hardware and software depreciation costs incurred within the eligible period. Costs of amortised assets (such as mentioned above) would fall outside of this. Any R&D costs incurred outside the GDSR period would not be eligible.

Do the costs have to be associated with a particular or specific game title, in order to make a claim under the GDSR?

No. Some tasks, such as prototyping, could be ‘pre-title’. The basic premise is that it is eligible game development activity.

In terms of marketing costs, are there any restrictions on marketing costs? For instance, in other funding schemes there is often a cap on marketing spend? Also, does it matter if the marketing cost is incurred overseas (e.g. the cost to market the product in Europe)?

Marketing costs are eligible only under the context of remuneration, not software, services and tools used for Marketing. This means marketing costs are only eligible if they are game development marketing staff costs (e.g. salaries) from staff domiciled in New Zealand.

Does the New Zealand domicile requirement apply only to employee and contractor costs, or does it affect other types of expenditure too?

Yes. The New Zealand domicile requirement applies to remuneration. This includes payments to employees and independent contractors, and certain outsourced services that are considered part of core game development activity — such as voiceover recording or quality assurance (QA). Even if these services are contracted out, they are still treated as remuneration and must be provided by individuals domiciled in Aotearoa New Zealand to be eligible.

However, the domicile requirement does not apply to other types of eligible expenditure. Examples of costs that may be paid to offshore providers include:

• Software as a service and online hosting used in the development of a game by NZ-based staff.
• Overseas trademark registration for IP created during game development.

For more detail on which costs fall under remuneration versus other categories, refer to the GDSR Guidelines and Design Features document.

Why did you have a Pilot Application Phase?

The GDSR was a scheme set up in 2023, and MBIE and NZ On Air saw value in both stress-testing NZ On Air’s administrative systems for the rebate with a small group of businesses. This would then result in a smoother experience for all businesses in the standard application and assessment process that was to occur in early 2024.

Why was the Pilot Application Phase only open to businesses with a threshold of >$5 million annual anticipated eligible expenditure?

The Pilot Application Phase was designed with a threshold of >$5 million anticipated eligible expenditure over the period 1 April 2023 to 30 September 2023. This threshold targeted the pilot to larger firms that typically had more resources to complete applications and test NZ On Air’s administrative systems in the test phase.

Will you process early payments like you did in the Pilot Phase in subsequent years?

No, the Pilot Application Phase was for Year One only. Establishing in-year payments on a more permanent basis could be considered in the scheme reviews, which are scheduled at the two- and four-year marks.