Australian treasurer Jim Chalmers has raised concerns over gambling companies’ use of research and development (R&D) tax credits, following recent Australian Tax Office (ATO) data that revealed the industry claimed nearly $90 million in a single financial year. 

The Brisbane-born who has been a treasurer in the Albanese government since May 2022 and is also a member of the Australian Labor Party suggested that the government may take steps to limit or withdraw these concessions from the gambling sector. 

The suggestion has sparked debate on the ethics of R&D tax support for such companies.

“It’s Problematic” 

Chalmers voiced his concerns at a news conference on Monday when asked about poker machine and betting companies receiving government-funded tax credits for their R&D activities. 

“I have a personal view about that, which is that it’s problematic,” he said, adding that while there is no official announcement yet, the issue has gained government attention and may prompt action. 

“It will receive our attention,” said Chambers, who has served as a member of parliament for the division of Rankin since 2013 while also hinting at possible policy changes.

The Need for More Transparency 

Earlier this month, the ATO disclosed, for the first time, detailed data on corporate claims for R&D tax credits. 

According to the respective data, for the 2021-22 financial year, major gambling companies claimed a combined total of $86.5 million in credits. 

Among them, Tabcorp claimed the largest share at $39.5 million, followed by Aristocrat with $22.2 million, Ainsworth Game Technology at $15 million, and PointsBet with $9.95 million. 

Additionally, two smaller companies, Advance Gaming Pty Ltd and Amerson Global Gaming Pty Ltd, claimed $1.84 million and $177,721, respectively.

Making an effort toward increased transparency, the figures will now be published annually, with each report covering a financial year two years prior. 

“Pro-Harm-Minimization” Policy

This scrutiny comes amid growing calls for reform in the gambling industry. Independent MP Andrew Wilkie has urged federal, state, and territory governments to require gambling companies to ensure their funds are not tied to criminal activities. 

Wilkie noted cases of individuals with gambling addictions committing theft to fund their gambling and argued that the law should mandate that any recovered funds or proceeds go back to victims. 

Speaking on ABC Radio National, Wilkie compared this to standard practice with stolen goods.

“It’s the right thing to do to return the proceeds of crime to the victim of that crime,” he said. “If someone has their car stolen and it is recovered, the car is returned to them. And, you know, jewelry – it’s stolen, it’s recovered, it’s returned to them.”

Wilkie emphasized that his stance is not anti-gambling but rather “pro-harm-minimization.” 

He also expressed frustration that previous attempts to introduce related legislation in federal parliament were blocked by major parties, which typically prevent non-government bills from advancing to debate or a vote.

As public scrutiny of gambling practices intensifies, Chalmers’ comments suggest that the government may soon consider restricting poker machine and betting companies‘ access to R&D tax concessions, potentially reshaping funding policies for this industry.

Earlier this month, we reported on a series of new documents that suggested that the Albanese government had been subjected to intensive lobbying by betting companies as well as football codes amid the recent hints at plans for a partial gambling ad ban.

Last month, following the country’s annual losses to gambling growth to AU$32 billion, the Alliance for Gambling Reform criticized the government for not taking more relevant measures to cut problem gambling and harm.