Australia: Senate Committee report on amendments to exclude tobacco, gambling from R&D tax incentive
Exclusion would be effective for income years starting on or after July 1, 2025
The Senate Economics Legislation Committee released its report on its inquiry into a bill that contains amendments to taxation law that are related to the research and development tax incentive (R&DTI), donations to deductible gift recipients (DGRs), and tax administration.
The Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026 seeks to amend the Income Tax Assessment Act 1997 to:
- Exclude research and development activities related to tobacco and gambling from the R&DTI for income years starting on or after July 1, 2025, except for activities conducted for the sole purpose of harm minimization
- Allow donors to claim a tax deduction on donations to DGRs even if they are valued less than two dollars
- Streamline how closely held trustees report beneficiary tax file numbers to the Commissioner of Taxation
The Committee recommends that the bill be passed.