Evidence / Submission
Submission Health innovation Smarter investment Commercialisation Economic diversification Industry

Submission to the Senate Economics Legislation Committee on the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019

Research Australia, Medicines Australia, AusBiotech, Medical Technology Association of Australia, BioMelbourne Network, Association of Australian Medical Research Institutes, Life Sciences Queensland 1 March 2020 2020 · Submission

In brief

A joint statement from Research Australia and six health industry and research groups asking the Senate to reject changes to the R&D Tax Incentive. They argued the changes would cut support for health start-ups and discourage local manufacturing, at a time when government R&D support was already falling.

Abstract

This two-page collective submission to the Senate Economics Legislation Committee, by Research Australia and six health and life sciences bodies, opposes the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 and recommends that the Committee recommend its rejection. It maintains the Bill wrongly assumes the research and development tax incentive (R&DTI) lacks additionality, would cut the refundable offset for most life sciences companies by 2.5%, hurting pre-revenue start-ups, and through the intensity measure would discourage local manufacturing. It notes Australian Government R&D support has fallen from 0.67% to 0.48% of gross domestic product since 2011–12 and that a bipartisan Senate committee rejected most of the same amendments in 2018–19.

Published1 March 2020
Type Submission
Platform Health innovation, Smarter investment
Topic Commercialisation, Economic diversification, Industry
AuthorResearch Australia, Medicines Australia, AusBiotech, Medical Technology Association of Australia, BioMelbourne Network, Association of Australian Medical Research Institutes, Life Sciences Queensland
Format2 pages · PDF