Australia’s Gaming Technologies Association (GTA) said Monday it has requested a meeting with the Treasurer’s office over concerns the government is considering cutting the industry off from a tax incentive program for businesses conducting research and development (R&D) on Australian soil.
The request follows comments made by national Treasurer Jim Chalmers earlier in the day in which he described utilization of the Research and Development Tax Incentive program by gaming companies such as Aristocrat and Tabcorp as “problematic” and an “issue that warrants our attention.”
Some politicians have suggested the gaming industry is exploiting a “loophole” in the tax credits system by benefiting from the scheme.
In response, the GTA – a key industry lobby group and organizer of the annual Australasian Gaming Expo – said it was surprised by Chalmers’ comments and has reached out to his office to request a meeting.
“The [Research and Development Tax Incentive] program was established by the Gillard Government in 2011 with the purpose of encouraging Australian businesses to invest R&D dollars locally, to create jobs and an R&D skills base, rather than investing offshore, said GTA CEO Jinesh Patel in a statement sent to Inside Asian Gaming. “The gaming manufacturing sector has done just that, delivering benefits as the policy intended.
“The GTA and its members are also working with all Governments and regulators on harm mitigation initiatives. Some technologies currently being trialled in licensed venues have been developed through R&D dollars invested by GTA members.
“No alleged ‘loophole’ is being exploited. All applicants for R&D tax credits are assessed independently by the Australian Tax Office and AusIndustry. The GTA believes that all Australian industries should continue to be given the same opportunity under this effective and established policy, without arbitrary exclusions.”
The issue of tax credits has come to the fore following release by the Australian Taxation Office last month of its first transparency report, which included information on which companies were benefiting most from the R&D incentive scheme. The report shows Tabcorp claimed AU$39.5 million (US$26.0 million) on local R&D in the 2021-22 financial year, while Aristocrat claimed AU$22.1 million (US$14.5 million) and Ainsworth AU$15 million (US$9.9 million).
While those figures have drawn the ire of Australia’s vocal anti-gambling campaigners, they pale compared to the AU$200.5 million (US$132 million) claimed by software firm Atlassian, AU$129.9 million (US$85.5 million) by biotechnology firm CSL or the AU$115 million (US$75.7 million) claimed by medical device manufacturer Cochlear.
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