R&D Tax Incentive: Gambling and Tobacco Eligibility Exclusions Explained
Last reviewed:
Primary tax-year context: 2025-26
This article is general information only. We maintain pages using primary-source checks and date-based reviews. See editorial policy.
General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
In a Treasury ministers release dated 8 December 2025, the Government published exposure draft legislation to exclude gambling and tobacco-related activities from R&D Tax Incentive (RDTI) eligibility.
The release stated the exclusions would apply broadly from 1 July 2025, with a carve-out for R&D undertaken solely for harm minimisation.
What this means in practice
For affected entities, this is not just a policy headline. It can alter:
- project-level eligibility screening
- contemporaneous documentation standards
- internal governance on claim sign-off
- risk settings in amended claim reviews
Immediate checklist for claimants
- Re-map active and historical project inventories against exclusion categories.
- Document why any retained projects fit a harm-minimisation carve-out, where relevant.
- Reconfirm adviser sign-off standards before lodgment or amendment cycles.
- Monitor enacted legislation wording rather than relying on draft summaries.