FinTech Australia cautions on exclusion of digital technology from R&D Tax Incentive review scope
FinTech Australia has warned that financial and other digital technologies risk being unintentionally excluded from future innovation funding unless explicitly recognised in the federal government’s current Strategic Examination of Research and Development.
The group says the absence of digital technology from the government’s five priority areas for long-term R&D focus — defence, health, agriculture, energy and resources — threatens to crowd out innovation in emerging sectors like fintech, AI, and cybersecurity.
“Every industry today leverages technology, so the term ‘digital’ can seem redundant,” said Rehan D’Almeida, CEO of FinTech Australia. “But with fintech in particular, there are world-leading innovations unique to Australia that may not qualify for the R&D Tax Incentive under the proposed framework. That’s our key concern.”
The R&D Tax Incentive has long been essential to bridging early-stage development gaps for startups.
“It’s not an understatement to say that the R&D Tax Incentive is the lifeblood of the fintech and startup sectors,” D’Almeida said. “We’ve consistently flagged this with policymakers. A narrow focus could undermine Australia’s future competitiveness.”
FinTech Australia's recommendations include:
Explicitly including digital technology (e.g. fintech, AI, cybersecurity) as a national focus area
Modernising the R&D Tax Incentive to reflect software-led, agile innovation
Introducing sector-specific eligibility criteria for high-growth digital startups
Reforming the Early Stage Venture Capital Limited Partnership (ESVCLP) program to boost domestic capital formation
Ensuring enabling sectors like fintech are not crowded out in funding allocations
Maintaining predictability and simplicity in RD&I policy to support long-term planning
About FinTech Australia
FinTech Australia is the not-for-profit peak industry body for the Australian fintech sector, representing more than 400 companies nationwide. It works to foster a thriving fintech ecosystem by advocating for supportive policy, promoting innovation, and enhancing collaboration between startups, industry and government.
