Gambling and tobacco firms will be excluded from the Research and Development Tax Incentive from next year, after transparency data laid bare tens of millions of dollars in claims for taxpayer funded innovation subsidies.
The move was announced on Wednesday as part of the Mid-Year Economic and Fiscal Outlook (MYEFO) and is expected to increase tax receipts by $6 million a year from 2026-27, and also reduce payments by $4 million.
The Research and Development Tax Incentive (RDTI) allows companies to claim research and development expenses to reduce their tax bills. It can be refundable and non-refundable, and is calculated according to firm size.
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