The Australian government has called time on the gambling industry’s R&D Tax Incentive access. From 1 July 2025, gambling-related activities are officially off the list for tax benefits meant to support innovation. Announced in the Mid-Year Economic and Fiscal Outlook, the decision means no more tax breaks for gambling innovations like betting apps or casino tech. Officials say it’s a necessary stand against addiction and social harm. But the industry isn’t buying it. Gambling businesses argue the decision is less about morality and more about putting brakes on an already regulated industry. While the government frames it as a moral and fiscal necessity, the gambling industry views it as a step toward stifling growth and innovation.
Australia’s R&D Tax Incentive has long been a lifeline for businesses aiming to innovate. It provides tax offsets to firms investing in research and development. But now, the gambling and tobacco industries are being shown the door. The government stated, “Excluding these activities will ensure that the government is not subsidizing this type of R&D.”
This means no more tax perks for gambling-related advancements like betting apps or casino technologies. The change reflects growing concerns about addiction and its impact on society. While the government sees this as a step toward responsible fiscal policy, affected industries are left questioning the broader implications for innovation and fairness.
Responsible Wagering Australia (RWA) isn’t exactly popping champagne over the government’s decision to cut gambling from the R&D Tax Incentive. CEO Kai Cantwell is firing back, warning that this move could open a can of worms.
According to Cantwell, this move could open the door for sector-specific tax exclusions, and that’s where things could get messy. “What’s next? Are they going to target fast food, alcohol, or fossil fuels?” he said, pointing out that this exclusion sets a slippery precedent.
Cantwell isn’t just worried about the broader impact—he’s talking real job losses in the R&D space, plus a significant slowdown in innovation. After all, gambling companies are all about consumer protection and advancing tech, not just rolling the dice. He’s calling for the government to sit down and talk it out instead of pulling the rug out from under an entire industry.
The government needs to engage with the sector before making a blanket call. And let’s not forget, that this decision could push R&D investments to friendlier countries, leaving Australia behind.
For online gambling platforms, including the best online casinos in Australia, this move could slow down growth and be the next big breakthrough. The government might want to double-check its hand before going all-in on this one.
Money-wise, the government expects to pocket an extra AU$12 million and cut payments by AU$8 million over the next five years. While it’s not going to blow up the budget, it’s a tidy move in the name of spending responsibly.
Of course, this shift won’t happen overnight. The Department of Industry and the Taxation Office must work their magic and iron out the details before the new rules kick in.
This policy shift isn’t just about gambling—it’s about rewriting the rules of innovation. The government might be claiming the moral high ground, but what if this sparks a domino effect on other industries?
One thing’s clear: Australia’s innovation game just got a new set of rules. Whether they win or lose remains to be seen.
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