Australian Federal Government removes wagering companies from eligibility for R&D Tax Incentive

The Australian Federal Government’s decision to exclude wagering companies from the Research and Development (R&D) Tax Incentive program has drawn significant criticism from industry stakeholders.

Critics warn that this policy change could stifle innovation, deter investment, and lead to job losses within Australia, while pushing opportunities offshore.

The R&D Tax Incentive is designed to encourage industries to engage in research and development activities that enhance competitiveness and drive productivity. However, Responsible Wagering Australia (RWA) CEO Kai Cantwell has expressed concern over the lack of consultation with industry representatives, emphasizing that the decision undermines the program’s foundational principle of sector neutrality.

Cantwell stated: “This decision sets a troubling precedent for how tax policy could be manipulated in the future. Today, gambling companies are the target, but any industry could be next if tax policy becomes a bargaining chip in political negotiations. This slippery slope risks turning tax policy into a tool for moral judgment rather than a catalyst for economic growth.”

Key Industry Facts:

• The online wagering sector employs 80,000 people directly.
• It contributes over $2 billion annually in taxes and levies.

The RWA has called on the government to revisit the policy and engage with stakeholders to address the concerns raised.

Cantwell added: “Australia’s R&D framework should incentivize investment within the country. This decision risks driving R&D jobs to nations with more favorable incentives.”

In October 2024, the RWA demonstrated its commitment to responsible wagering by supporting NSW GambleAware Week and raising awareness about illegal offshore gambling operators, which currently represent 15% of the market. The organization continues to advocate for balanced regulations to protect consumers while ensuring a robust and legal market.