Key points:
- The exclusion of wagering companies from R&D Tax Incentives risks deterring local investments in innovation
- The wagering industry contributes over $2bn in taxes annually and supports 80,000 jobs across Australia
- Industry advocates are calling for government consultation and reconsideration to avoid long-term economic consequences
The Federal Government's recent decision to exclude wagering companies from accessing the Research and Development (R&D) Tax Incentive program has raised alarm across the industry.
Critics argue the move could harm innovation, investment and job creation within Australia while driving opportunities offshore.
The R&D Tax Incentive aims to encourage industries to undertake research and development activities that boost competitiveness and improve productivity.
Responsible Wagering Australia (RWA) CEO Kai Cantwell has criticised the government’s lack of consultation with industry stakeholders, warning that the decision undermines the program’s sector-agnostic principles.
Cantwell said: “The Government’s announcement sets a dangerous precedent for how tax policy could be misused in the future – today it’s gambling companies being targeted, but any industry could be next if it’s used as a bargaining chip or horse-traded in future political deals. This slippery slope opens the door for tax policy to become a tool of moral judgment rather than a driver of economic growth.”
Good to know: The online wagering sector directly employs 80,000 people and contributes over $2bn annually in taxes and levies.
The RWA has urged the government to reconsider the policy and engage with industry stakeholders to address concerns.
Cantwell added: “Australia’s R&D framework should be encouraging investment in Australia, but this decision risks driving R&D jobs to countries that offer more supportive incentives.”
In October 2024, the RWA supported NSW GambleAware Week, highlighting the risks posed by illegal offshore gambling operators, which now account for 15% of the market. The RWA continues to advocate for balanced regulations to protect consumers while maintaining a strong legal market.
