18 December 2024 

The Federal Government’s decision to exclude wagering companies from accessing Research and Development (R&D) Tax Incentives creates risks for Australian jobs, innovation and investment.  

R&D Tax Incentives exist to boost competitiveness and improve productivity across the Australian economy by encouraging industry to conduct R&D that may not otherwise have been conducted, improve the incentive for smaller firms to undertake R&D and provide business with more predictable, less complex support. 

Responsible Wagering Australia CEO Kai Cantwell said tax incentives like the R&D scheme are designed to be sector agnostic without government interference and supportive of industries that create jobs and economic benefits in Australia.  

“Our industry was not consulted by the Government on this decision – this is not how governments should engage with industry and it’s not the way to achieve effective policy outcomes,” Mr 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. 

“If I represented fast food, alcohol, fossil fuels or any other industry that face similar criticisms, I’d be worried. This cherry-picking approach undermines the neutrality of the tax system and leaves businesses guessing who will be targeted next.” 

The online wagering industry directly supports 80,000 jobs, generates over $6 billion annually to the Australian economy, and contributes more than $2 billion in taxes and levies each year. 

“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,” Mr Cantwell said. 

“The Government should collaborate with wagering companies to enhance safety for Australians and sustainability for the industry.  

“This has been the focus of the industry for years, and RWA will continue to invest in consumer protections, with or without government support. 

“Australian technology and innovation are world-leading, driving local growth and being adopted by global companies.  

“RWA calls on the Government to reconsider this exclusion and engage in meaningful consultation with industry stakeholders to ensure tax policy supports innovation, economic growth, and jobs,” Mr Cantwell said.