Joint statement on the Research & Development Tax Incentive
Don’t rip the guts out of Australian medical research commercialisation
Commercialisation of Australian medical research is under serious threat if the package of measures put by the ‘Ferris, Finkel, Fraser’ Review of the Research & Development (R&D) Tax Incentive is adopted and Australia’s medical technology, biotechnology, and pharmaceutical (MTP) sector is urging the Federal Government not to devastate Australia’s most innovative industry.
The R&D Tax Incentive is the most critical centre-piece program in the translation of Australia’s world-class research into treatments, cures, diagnostics, medical devices and vaccines. The program has been successful in helping attract more investment in R&D and fostering a strong Australian life sciences clinical trials and R&D sector.
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Research Australia has made two submissions into the federal government’s R&D Tax Incentive review.
R&D Tax Incentive Submission 2016
R&D Tax Incentive Submission 2015
Research Australia supports the report’s recommendations to:
- maintain the current eligibility criteria
- introduce an incentive to encourage collaboration with publicly funded researchers
- to release more information about claimants.
Research Australia has opposed the application of a new $2 million cap to small caps that are seeking to commercialise HMR and proposed a modification to a recommendation that would limit the R&D Tax Incentive to more research intensive companies.
The Government will now consider the recommendations of the Review together with the responses from the public consultation and then formulate its response, which is expected to be subject to another round of consultation, probably early next year.
As part of the National Innovation & Science Agenda, the Government has commissioned Innovation and Science Australia to undertake a review of the R&D Tax Incentive.
While Research Australia proposed some possible minor amendments to the R&D Tax Incentive, we argued that on the whole the R&D Tax Incentive is already performing well against the Review’s criteria of effectiveness, integrity and encouraging additional R&D. Any changes to the R&D Tax Incentive at this point in time should be limited to improving the way it is administered.
R&D Tax Incentive Review