Australia’s Federal Government had decided to exclude gambling companies from accessing Research and Development (R&D) Tax Incentives from 1 July 2025.
In its 2024-25 Budget announcement this week, the Government said that it will exclude activities related to gambling from R&D Tax Incentive eligibility from next year, arguing that these activities “can exacerbate addiction and associated harms”.
“Excluding these activities will ensure that the Government is not subsidising this type of research and development,” the Government said. “Activities that are solely for the purpose of harm reduction, such as reducing addiction, will remain eligible to receive support.”
This measure is estimated to increase receipts by AU$12.0 million and decrease payments by $8.0 million over five years from 2023–24.
Gambling industry body Responsible Wagering Australia (RWA) said the decision creates risks for Australian jobs, innovation and investment, pointing out that R&D Tax Incentives exist to boost competitiveness and improve productivity across the economy.
“Our industry was not consulted by the Government on this decision – this is not how governments should engage with industry and it’s not the way to achieve effective policy outcomes,” said RWA chief executive Kai Cantwell. “The Government’s announcement sets a dangerous precedent for how tax policy could be misused in the future – today it’s gambling companies being targeted, but any industry could be next if it’s used as a bargaining chip or horse-traded in future political deals.
“This slippery slope opens the door for tax policy to become a tool of moral judgment rather than a driver of economic growth. If I represented fast food, alcohol, fossil fuels or any other industry that face similar criticisms, I’d be worried. This cherry-picking approach undermines the neutrality of the tax system and leaves businesses guessing who will be targeted next.”
According to the RWA, the Australian online sports betting industry directly supports 80,000 jobs, generates over $6 billion annually for the economy, and contributes more than $2 billion in taxes and levies each year.
“Australia’s R&D framework should be encouraging investment in Australia, but this decision risks driving R&D jobs to countries that offer more supportive incentives,” Cantwell continued. “The Government should collaborate with wagering companies to enhance safety for Australians and sustainability for the industry.
“This has been the focus of the industry for years, and RWA will continue to invest in consumer protections, with or without government support. Australian technology and innovation are world-leading, driving local growth and being adopted by global companies.
“RWA calls on the Government to reconsider this exclusion and engage in meaningful consultation with industry stakeholders to ensure tax policy supports innovation, economic growth, and jobs,” Cantwell added.