The Australian government has released draft legislation on the exclusion of the gambling and tobacco industries from research and development (R&D) tax incentives.
The Albanese administration announced the changes, made via an amendment to the Income Tax Assessment Act 1997, in the December 2024 mid-year budget last year.
The country’s Treasury has now published an exposure draft bill, which states that any R&D activities for income years starting on or after 1 July 2025 will no longer be exempt from tax under the new legislation.
However, activities “conducted for the sole purpose of harm minimisation” will still be eligible for the tax incentive, according to explanatory materials provided by the Treasury.
The government said “gambling services, gambling or gambling-like practices” will no longer be exempt. An example given was the development of a “real-time forecasting engine to improve predictions”.
In the same document, the Treasury stated: “R&D activities related to gambling can exacerbate addiction and associated harms, and activities related to tobacco can increase health risks.
“Excluding these activities is in order to ensure the government is not subsidising this type of R&D through the programme.
“Where activities are solely for the purpose of harm reduction, such as reducing addiction, these activities remain eligible to receive support.”
Assistant treasurer Daniel Mulino said: “These exclusions will ensure taxpayers are not subsidising this kind of research and development that can exacerbate serious health risks, addiction and associated harms.”
As per Tabcorp’s 2025 annual report, the Australian operator claimed back A$2.9m (£1.4m) in income tax on its R&D, down from A$4.1m in 2024.
Efforts by some Australian politicians and campaigners to introduce a blanket ban on gambling adverts have stalled in recent weeks due to a separate ban on under-16s viewing them on social media.
The post Australia gambling industry’s R&D tax break to end as legislation published first appeared on EGR Intel.
The tax exemption for research and development will no longer apply to gambling or tobacco unless they pertain to harm reduction
The post Australia gambling industry’s R&D tax break to end as legislation published first appeared on EGR Intel.