Australia Considers Restricting R&D Tax Credits for Gambling Companies

Treasurer Jim Chalmers signals potential changes to tax incentives following significant claims by gambling firms.

Gambling companies in Australia claimed nearly $90 million in research and development tax credits in the 2021-22 financial year.
Treasurer Jim Chalmers described the use of these credits by gambling firms as 'problematic' and indicated the government may review the policy.
The R&D tax incentive is designed to foster innovation but currently lacks a public interest test, allowing broad eligibility.
Critics argue that the tax credits should be limited to industries with greater potential for economic benefit, rather than gambling.
The government is also working on reforms to betting advertising in an effort to address problem gambling.