Gambling in Australia Might Become Exempt From R&D Tax Incentives
Australia is considering removing R&D tax incentives for gambling, tobacco, and nicotine industries due to concerns about public health and responsible fund allocation.Summary
New draft legislation in Australia proposes to remove Research and Development (R&D) tax incentives for gambling-related research. This proposal, initially suggested last year, aims to address public concerns regarding the misuse of funds in industries linked to addiction and health issues. The legislation also includes tobacco and nicotine products. Government officials believe that taxpayer money should not be used to incentivize potentially harmful industries, and data suggests that R&D in gambling could worsen addiction while tobacco-related research contributes to chronic diseases. The move is also driven by Australia’s increasing national debt, projected to reach AUD 1 trillion by 2025/26, leading to a desire to redirect funds towards healthcare and the broader economy. In the 2021/2022 financial year, gambling firms claimed nearly AUD 90 million in tax credits, raising concerns about inefficient allocation of resources. Stakeholders have until January 30, 2026, to provide feedback on the proposed legislation.
(Source：Gamblingnews)