ORWELLIAN TAX CREDITS – SOME COMPANIES ARE MORE EQUAL THAN OTHERS
Federal Treasurer Jim Chalmers is being pushed to review a long-term tax-credit research scheme, started by the Labor Government in 2011, that is designed to increase Australian innovation. Australian companies that invest in research and development onshore can use the expenses to reduce the amount they pay on tax.
A few backbenchers and senators have accused gaming companies, such as Aristocrat, Ainsworth, Tabcorp and Pointsbet of exploiting “dodgy” tax loopholes.
At a press-conference Jim Chalmers was asked 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”.
Jinesh Patel, CEO of the Gaming Technologies Association (GTA), has defended the legitimate use of the tax credits for all Australian Industries, including gaming.
“The program was established 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. The gaming manufacturing sector has done just that, delivering benefits as the policy intended.
“No alleged ‘loophole’ is being exploited. All applicants for R&D tax credits are assessed independently by the Australian Tax Office and AusIndustry”.
Further, Jinesh Patel confirmed that the GTA and its members are “working with regulators on harm mitigation initiatives and some technologies currently being trialled in licensed venues have been developed through R&D dollars invested by GTA members”.
Mr Patel believes “All Australian industries should continue to be given the same opportunity … without arbitrary exclusions.”
