A proposed draft law in Australia seeks to eliminate the Research and Development Incentives for gambling-related R&D. Submitted on July 1 this year, the legislation is pending presentation to parliament. In addition to gambling, tobacco and nicotine products are also targeted. Last year, July 1 marked the initial proposal to exclude gambling from the Incentive.
The proposal aims to address public concerns about the misuse of funds in industries believed to contribute to addiction and health issues. Government officials argue that taxpayer-funded incentives should not exacerbate these issues.
The list of excluded items from the incentive was intentionally broad, covering online and real-life gambling, online bookmakers, slot machines, tobacco, nicotine, and related R&D-linked products. Government documents indicate that financial support in these sectors undermines public health improvements and anti-gambling addiction efforts. Exceptions are made for research on mitigating negative health impacts of smoking and addressing gambling addiction.
A budget report from last year suggested that gambling-related R&D could worsen addiction, while consumers of tobacco-like products are at risk of chronic diseases.
Projections from the Mid-Year Economic and Fiscal Outlook 2024-25 indicate a tight budget this year, with Australia’s national debt expected to reach AUD 1 trillion by the 2025/26 financial year. This situation prompts a shift in resource allocation to healthcare and economic benefits.
Data from the Australian Tax Office reveals that nearly AUD 90 million in tax credits were claimed by gambling firms in the 2021/2022 financial year. Continued acceptance of such claims could spur projects with little benefit, diverting funds from vital sectors.
Affected parties are assessing the potential impact of the legislation. Until January 30, 2026, the Australian government will allow 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