Draft legislation excluding gambling and tobacco from R&D claims released

The Federal Government’s exposure draft legislation to amend the R&D Tax Incentive excludes certain R&D activities from eligibility and will still enable companies to claim R&D for activities not covered by these exclusions.

On Monday 8 December 2025, the Federal Government released the Exposure Draft (ED) legislation which proposes to exclude research and development (R&D) to create gambling, tobacco, vaping and nicotine products from the R&D Tax Incentive (RDTI). The change will apply for income years starting on or after 1 July 2025. Almost 12 months ago, and following the Australian Taxation Office's (ATO) release of its first R&D Tax Transparency Report which listed many gambling and tobacco co...

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Authors: Georgia King-Siem

Published Date: 10 December 2025