Time: 16:13

Avita Medical announces R&D tax rebate

Avita Medical (ASX:AVH), a regenerative medicine company focused on the treatment of wounds and skin defects, has received a R&D Tax Incentive cash rebate from the Australian Tax Office of A$974,908 for the financial year ending 30 June 2016.

The R&D Tax Incentive provides a tax cash rebate to support Australian companies undertaking research and development projects.

“The receipt of the non-dilutive payment resulting from Australia’s R&D Tax Incentive program delivers an important additional resource towards the buildup of our global commercial, clinical, and regulatory programs. We are grateful to the Australian Government for supporting our efforts to innovate new advancements and exploration of additional applications for our proprietary technology platform, ReCell,” said Adam Kelliher, Avita Medical’s CEO.

The Turnbull government is considering a raft of changes to the popular R&D Tax Incentive program. The proposed changes, including a $2 million cap on cash claims, have raised significant concern across the biotech and life sciences sector.

AusBiotech is leading opposition to the change, arguing it will undermine investment in the sector and clinical trial activity.