Gambling in Australia Might Become Exempt From R&D Tax Incentives

New Draft Legislation in Australia aims to take away the Research and Development Incentives of gambling-related R&D.

The new legislation that was submitted on July 1 this year is still waiting to be presented to parliament.

Alongside gambling, tobacco and nicotine products are also included.

July 1 is also the date on which last year the proposal for the exclusion of gambling from the Incentive was first proposed.

The proposal was released to counteract the people’s growing fear and suspicions of public funds being misused in industries thought to negatively influence addiction and to impact someone’s health over a period of time.

Meanwhile, government officials believe that in order to avoid worsening the situation, they shouldn’t be making use of incentives that are paid for with taxpayer money.

Cause and Effect

The list of things that are excluded from the incentive was made broad to interpretation on purpose.

Things like online and IRL gambling, online bookmakers, slot machines, and the like, tobacco, nicotine, alongside similar products that are linked to R&D are in the list.

Other documents released by the Government show that the amount of financial support going into these sectors goes against the improvement of the people’s health and counteracts anti-gambling addiction efforts.

The only exclusion is research aimed at finding ways to offset the negative health effects of smoking and helping with gambling addiction.

A budget report that came out last year showed that R&D related to gambling could make addiction worse, while those who consumed things similar to tobacco were more likely to develop a chronic disease.

Owing Too Much

Projections from the Mid-Year Economic and Fiscal Outlook 2024-25 show that this year’s budget will be tight.

The government is expected to go even more in the red; this has been going on for a while.

By the 2025/26 financial year, Australia’s national debt is expected to reach AUD 1 trillion.

Many will now be more inclined to lower the budget for incentives and instead divert those resources to areas that benefit healthcare and the economy.

An additional driving force for change has been created by new data from the Australian Tax Office.

In the 2021/2022 financial year, gambling nearly AUD 90 million in tax credits were claimed by wagering firms.

By allowing claims like these to continue, government officials believe this could cause a massive increase in projects that don’t provide much benefit and take away, and that more important sectors will not be able to receive proper funding.

Those who have been affected by this are trying to ascertain the effect this new legislation will have on them.

Until January 30 in 2026, the Australian government will be allowing industry groups, public health organizations, and research institutions to voice their thoughts on the legislation and possibly affect it.