The Albanese Government has released draft legislation to exclude activities related to gambling and tobacco from Research and Development Tax Incentive eligibility.
The exclusions will apply broadly, capturing research and development related to all types of gambling and any tobacco or nicotine products from 1 July 2025.
These exclusions will ensure taxpayers are not subsidising this kind of research and development that can exacerbate serious health risks, addiction and associated harms.
A carve‑out will apply for research and development activities that are conducted solely for harm minimisation, such as reducing addiction, ensuring these activities remain eligible to receive support under the program.
The draft legislation implements changes announced in the Mid‑Year Economic and Fiscal Outlook 2024-25.
Interested stakeholders are encouraged to provide a submission on the draft legislation by 30 January 2026.
