Australian Government Excludes Wagering Companies from R&D Tax Incentives

The Australian Federal Government has excluded wagering companies from accessing the Research and Development (R&D) Tax Incentive program, drawing criticism from industry leaders.

The recent decision by the Federal Government on excluding wagering companies from Research and Development (R&D) Tax Incentive made the industry feel worried.

Critics argue that this move will adversely affect innovation, investment, and employment in Australia, while opportunities will be created overseas.

This research and development tax incentive aims to incite industries into activities that provide competitiveness and higher productivity levels.

Responible Wagering Australia Chief Executive Kai Cantwell condemned the government, saying it was a lack of consultation with the industry while warning that the decision will undermine the program’s sector-agnostic principles.

Cantwell said: “The Government’s announcement sets a very dangerous precedent about the possible future abuse of tax policy – now it is online gambling that is being singled out, but any industry could be next in line if it is used as a bargaining chip or traded away in future political deals. This slippery slope allows tax policy to become an instrument of moral judgment rather than being an engine of economic growth.

Importantly, a considerable sum-the online gambling industry directly employs 80,000 people while remitting more than $2 billion in taxes and levy annually.

The RWA has asked the government to review the policy and consult with industry players to allay fears.

Cantwell said, “Australia’s R&D framework should be encouraging investment in Australia; however, this decision poses a risk of driving R&D jobs to countries that provide more favorable incentives.”. The RWA supported NSW GambleAware Week in October 2024. The NSW Week highlights the threats posed by offshore illegal operators that currently hold 15% of market share. NSW RWA continues lobbying on the case for fair laws to protect consumers with conditions to keep a thriving black market.