Sector support for Patent Box

As the national peak for the whole of the health and medical research pipeline, Research Australia was pleased to convene a broad cross-section of health innovators including Medicines AustraliaAusBiotech, and the BioMelbourne Network to develop a unified position on the Patent Box tax treatment. Together we have issued the following joint statement.

Joint Statement of support for an Australian Patent Box

Australia’s health innovators support the introduction of a Patent Box, and we welcome this initiative by the Australian Government. With the right policy settings, a Patent Box will ensure Australian discoveries in health are developed here, ensuring Australia captures the opportunity for new industries and jobs in health innovation. We look forward to working with Treasury to ensure the design of the patent box adequately incentivises Australian health innovators to develop and manufacture their ideas onshore.

This collective statement is made by Research Australia, Medicines Australia, AusBiotech, BioMelbourne Network and the Medical Technology Association of Australia. In short, we represent a broad cross-section of health innovators. Our combined membership conducts most health-related research and development (R&D) activities in Australia with the objective of discovering and delivering better health outcomes and an enhanced health system for Australian patients and the world. This membership includes universities, research institutes, consumers, and small, medium and large companies.

What is a Patent Box?

A Patent Box is a tax concession that provides a lower tax rate for income derived from certain forms of intellectual property (IP), typically patents. The policy goal of patent boxes is to promote R&D and the commercialisation of IP.

Key Points

  • We strongly support the introduction of a Patent Box in Australia. Many of us have advocated for the introduction of a Patent Box for several years.
  • We acknowledge the need for the design of the Patent Box to be consistent with the OECD’s Base Erosion and Profit Sharing (BEPS) Action 5 Minimum Standard.
  • The UK’s patent box provides a model for Australia which is superior in many ways to the model proposed in the Australian Treasury’s Discussion Paper.
  • The Government should establish an expert working group with industry representation to support the design and implementation of the Patent Box.

Download the joint statement here.

Research Australia will continue to work with the Government and the Treasury to support the further design and implementation of the patent box.

Research Australia’s submission in response to the Treasury consultation is available here.

A patent box tax concession for Australia

Research Australia welcomed the Government’s announcement in the May 2021 Budget that it would introduce a patent box tax concession for the medical and biotechnology sector. As part of the further development of this proposal, the Australian Treasury has issued a consultation paper, outlining the key features. Research Australia’s response addresses several major concerns with the proposal including the focus on incentivising licensing but not manufacturing, and limiting eligibility to patents granted in Australia.

We are working with our membership and other key stakeholders across the sector, and look forward to engaging further with Treasury as the development of the patent box continues.

Research Australia’s submission is available here.

University Research Commercialisation

The Australian Government is undertaking a scoping study to understand how to best implement a University Research Commercialisation Scheme to better translate and commercialise university research outputs. It has appointed an Expert Panel and issued a Discussion Paper.

Research Australia’s response to the Discussion Paper addresses the role of ‘Missions’, the use of stage-gating and the role of co-funding by Governments, universities and industry. It highlights the critical need to better align existing funding programs and fill the gaps to provide a more seamless approach to research funding from basic research through to commercialisation.

Research Australia’s submission is available here.

2021 Pre Budget submission calls for renewed investment in R&D

Research Australia’s Pre Budget submission to the Treasurer ahead of the 2021 Budget  focuses on the vital role of health and medical research and innovation in Australia’s  response to the COVID-19 pandemic, and the manufacturing and innovation opportunities that health and medical research presents for Australia’s economic recovery.

It calls for renewed investment in R&D by the Australian Government, continued support for universities and medical research institutes with meeting indirect research costs, and measures to support medical products R&D and manufacture. The case for increasing NHMRC and ARC funding is also made. Funding for Government initiatives in data sharing and preventive health are among other measures sought.

Research Australia’s submission is available here.

Congratulations Peter Wills AC, new Chair of Australia’s $500M Biomedical Translation Fund

Media Release: Wednesday 3 August 2016

The Biomedical Translation Fund is one of Australia’s best hopes to bridge the “Valley of Death” between medical research and commercialisation or clinical practice.

The Federal Minister for Industry, Innovation and Science, Greg Hunt, today announced that the founder of Research Australia, Peter Wills AC, will chair the new Biomedical Translation Fund.

“Peter Wills AC is a great choice to champion the multi-million dollar Biomedical Translation Fund,” said CEO of Research Australia, Nadia Levin.

Continue reading “Congratulations Peter Wills AC, new Chair of Australia’s $500M Biomedical Translation Fund”

Tax Incentives for early stage investors

As part of the National Innovation and Science Agenda (NISA) Treasury has undertaken a consultation on an initiative to provide tax incentives for early stage investors in innovative companies. Research Australia’s submission supports the proposal and suggests some amendments to improve its operation and reduce red tape. These include making registration for the R&D Tax incentive a qualifying condition for treating a company as an ‘innovation company’ in respect of which the tax incentive can apply, and allowing the tax incentive to be available to ‘retail’ investors. The tax incentive has the potential to increase the capital available to early stage innovative companies, including those seeking to commercialise new medicines, devices and therapies.

Tax Incentives for early stage investors

Industry Assistance in Queensland

Research Australia has responded to the Queensland Competition Authority’s Draft Report of Queensland Government Industry Assistance. Research Australia supports the need for a clear rationale and strict criteria for Industry Assistance Programs but suggests that the proposed criteria need to be developed and applied more appropriately. In the case of health and medical research, the opportunity to improve the effectiveness and efficiency of the health care sector (with a saving to the Queensland Government) and to improve health and wellbeing need to be recognised as legitimate objectives of Government assistance. The submission highlights the complex interaction between public research funding and private sector involvement in the commercialisation of health and medical research, and points to some successful Queensland models that are worth supporting.

Industry Assistance in Queensland

Boosting Commercial Returns from Research

The Ministers for Education and Industry jointly commissioned a review of measures that can be taken to boost the commercialisation of Australian publicly funded research.

Research Australia agrees that more can be done to support the commercialisation of Australian research, and our submission makes a number of proposals to increase the commercial returns from publicly funded research. While commercialisation of research is the clear focus of the discussion paper and our response, Research Australia recognises that commercialisation is not the sole purpose of publicly funded research, and that the focus must be on achieving the right balance between:

  • basic and applied research;
  • investigator led and strategic priority driven research; and
  • commercialisation and other paths to translation.

Boosting the Commercial Returns from Research

Cooperative Research Centres Programme Review

The Industry Minister has appointed Mr David Miles, AM, former Chair of Innovation Australia, to lead a review of the CRC Programme. 11 of the 36 existing CRCs are health related. Research Australia’s submission supports the existing CRC Programme and emphasises the social and economic benefits of CRCs in supporting the translation of health and medical research including, but not limited to, research commercialisation.

Cooperative Research Centres Programme Review

Entrepreneur’s infrastructure programme

In the May Budget the Federal Government announced that it was replacing a range of existing industry support programmes, including Commercialisation Australia, with the Entrepreneur’s Infrastructure Investment Programme. In June 2014 the Department of Industry launched a discussion paper on the Programme, and Research Australia made a submission. Research Australia’s submission emphasised the importance of building collaboration between publicly funded research organisations and private sector entrepreneurs, the importance of viewing researchers both as a resource to entrepreneurs and potential entrepreneurs in their own right, and suggested a number of measures which would support the successful commercialisation of Australian public research.

Entrepreneur’s infrastructure programme