2 weeks Ago By Millie Muroi
Treasurer Jim Chalmers has signalled a government clampdown on betting companies’ use of tax breaks to develop new poker machines and gaming apps, saying he considers the practice “problematic”. As the government works on a package of betting advertising reforms to help curb problem gambling, Chalmers this month also came under pressure from backbench MP Mike Freelander to review the R&D tax credits system . Asked at a press conference on Monday whether subsidising poker machine developments through the incentive was an appropriate use of taxpayer money, Chalmers said: “I have a personal view about that, which is that it’s problematic.
Australia’s gambling and poker machine companies are big beneficiaries of R&D tax credits. Credit: Jason South “That’s the sort of issue that warrants our attention. It will warrant, and it will receive, our attention.
” Companies can claim the cost of carrying out research and technological breakthroughs that lead to improvements in their core business, reducing the amount of tax they pay under the scheme that is designed to foster Australian innovation. Australian Tax Office data this month showed Australia’s gambling and poker machine companies were beneficiaries of the scheme, claiming more than $90 million in research and development expenses in 2021-22. ASX-listed Tabcorp had an R&D budget of nearly $40 million, while poker machine giant Aristocrat’s was $22 million, slot maker Ainsworth Game Technology’s was $15 million and bookmaker PointsBet was $10 million.
An Aristocrat spokesperson said the company applied for R&D tax credits within strict terms established by the government. The company typically spent its R&D budget on developing new machines and games, the spokesperson said, including cabinets and electronics, innovations to support new system applications, and on materials recovery and recycling..
