Australia Moves to Exclude Gambling from R&D Tax Incentives
UPDATE: New draft legislation in Australia aims to eliminate Research and Development (R&D) tax incentives for the gambling industry. This significant proposal, submitted on July 1, 2023, is currently awaiting presentation in parliament and could reshape funding for gambling-related research.
The proposed changes come amid growing public concern over taxpayer money being used to support industries linked to addiction and health issues. Officials insist that continuing these incentives would exacerbate the nation’s pressing addiction problems. The legislation also targets the tobacco and nicotine sectors, indicating a broader push to reassess financial support for industries deemed harmful.
The draft legislation specifically outlines exclusions for various forms of gambling, including online gambling, in-person betting, and gaming machines. Notably, the only permitted research will focus on mitigating the adverse health effects associated with smoking and gambling addiction. According to previous government reports, R&D related to gambling has been shown to potentially worsen addiction rates, with tax credits for such activities reaching nearly AUD 90 million in the 2021/2022 financial year.
The urgency of this legislative change is underscored by Australia’s fiscal situation. The Mid-Year Economic and Fiscal Outlook 2024-25 projects that the national debt will soar to AUD 1 trillion by the 2025/26 financial year. This grim financial outlook has prompted calls for reallocating resources from incentives that do not serve the public good to healthcare initiatives that can positively impact the community.
Officials from the Australian Tax Office and other government entities have expressed concerns that ongoing claims for gambling-related tax credits may lead to an increase in projects lacking real benefit. They emphasize the need for a financial strategy that prioritizes the health and well-being of Australians.
The government will allow industry groups, public health organizations, and research institutions to voice their opinions on the proposed legislation until January 30, 2026. This consultation period may significantly influence the final outcome of the legislation.
As discussions unfold, stakeholders affected by these potential changes are left to ponder their future in a landscape that may soon shift dramatically. The implications of this legislation could have far-reaching effects on public health initiatives and the financial stability of industries connected to gambling and tobacco.
Stay tuned for further updates as this urgent situation develops, and ensure your voice is heard in the upcoming consultations.
