BioMelbourne Network submission regarding R&D Tax Incentive

On behalf of the members, BioMelbourne Network has made a submission to Treasury regarding the proposed changes to the R&D Tax Incentive.

In terms of our overall consideration of the proposed changes to the R&D Tax Incentive, it is our view that the changes:

  • increase the complexity and introduce significant uncertainty into the program
  • have not undergone sufficient consultation to determine the impact on innovation intensive companies, such as those in the health industry
  • recognise the importance of clinical trials to Australia, but do not provide a fit-for-purpose definition of clinical trials
  • require greater clarity and understanding of the means of identifying clinical trials expenditure
  • have not been sufficiently modelled to examine the unintended consequences of fixing the offset at 13.5% above the company’s tax rate
  • create risk around increased burden of compliance and increased red-tape for companies that will create timing delays and deter R&D investment decisions
  • will be detrimental to Australia’s ability to remain globally competitive in innovation-intensive industries, such as pharmaceuticals, biotechnology and medical technology.

Thank you to all of our members who have provided data, feedback and consultation on this issue – and thank you to those companies who have shown leadership in advocating on behalf of the sector on these changes. Your voice is important and your support makes a difference!

The full BioMelbourne Network submission is available here.

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