New draft legislation in Australia seeks to remove Research and Development Incentives for gambling-related R&D.
The legislation, submitted on July 1 this year, is awaiting presentation to parliament.
Tobacco and nicotine products are also part of the proposal.
The proposal was first suggested on July 1 of last year to address public concerns about the misuse of funds in industries negatively affecting addiction and health.
Government officials believe avoiding taxpayer-funded incentives is necessary to prevent worsening the situation.
Cause and Effect
The list of exclusions from the incentive is intentionally broad.
Included are online and physical gambling, online bookmakers, slot machines, tobacco, nicotine, and similar R&D-linked products.
Government documents show that financial support to these sectors contradicts public health improvements and anti-gambling addiction efforts.
Research focused on offsetting negative health effects of smoking and aiding gambling addiction is the sole exclusion.
A budget report from last year indicated that gambling-related R&D could exacerbate addiction, while those consuming tobacco-like products were more inclined to chronic diseases.
Owing Too Much
The Mid-Year Economic and Fiscal Outlook 2024-25 predicts a tight budget this year.
The government is expected to incur a greater deficit, continuing a trend.
By 2025/26, Australia’s national debt is anticipated to hit AUD 1 trillion.
There is growing support to reduce incentives’ budget and redirect resources to healthcare and the economy.
New data from the Australian Tax Office also drives the call for change.
In the 2021/2022 financial year, gambling firms claimed almost AUD 90 million in tax credits.
Officials believe that allowing such claims could lead to an increase in less beneficial projects, depriving vital sectors of necessary funding.
Those affected are assessing the impact of the new legislation on them.
Until January 30, 2026, the Australian government will enable industry groups, public health organizations, and research institutions to express their views on the legislation and potentially influence its outcome.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com