Budget delivers for biotech manufacturing, says AusBiotech

Biotech News: AusBiotech welcomes the support for biotech manufacturing as the Federal Treasurer announces a new patent box during the Federal Budget.

The announcement demonstrates the Government’s ongoing recognition of biotechnology as a long-term social and economic driver, will enhance Australia’s competitiveness and keep us at the cutting edge of science and innovation.

A new “patent box” incentive will tax corporate profits from Australian developed and patented medical and biotechnology innovations at a concessional 17 per cent effective corporate tax rate. An internationally competitive tax regime for patents will help encourage companies to develop their research and development innovations into profitable businesses in Australia.

AusBiotech CEO, Lorraine Chiroiu, said “We commend whole-heartedly the patent box announced in tonight’s Budget for medical and biotechnology innovations.

“Research and innovation are central to Australia’s international competitiveness and the patent box will help bridge the gap to commercialisation, and support companies to keep the development of their IP and the value they create from it – especially by manufacturing locally – in Australia to benefit Australians.

“This approach as it is central to helping ensure that Australian manufacturers remain competitive on an international scale by bridging the gap between R&D and commercialisation.

“This tax incentive will address the gap that leaves our IP vulnerable, retain home-grown IP, and support Australian innovators and manufacturers. It will make the commercialisation of IP and manufacturing in Australia more genuinely viable for businesses.”

The patent box’s purpose would be to encourage the manufacturing and commercialisation phase of innovation by providing an incentive to industry to locate high-value jobs associated with the development, manufacture and exploitation of IP in Australia.