Actinogen announces R&D Tax payment

Company News

Actinogen Medical (ASX: ACW) has announced the company received an R&D Tax Incentive rebate of $1,321,732 for the 2014-2015 financial year.

Actinogen is an Australian company focused on the development of novel treatments for Alzheimer’s disease and other major age-related neurodegenerative disorders.

The Government is currently attempting to secure political support for its proposed 1.5 per cent cut in the R&D Tax Incentive.

According to recent analysis from the Parliamentary Budget Office, the proposal to reduce the value of the Incentive equates to a four-year $950 million cut in policy support for Australian-based R&D.

The Government did secure support from the Palmer United Party last year to cap claims under the popular and highly-regarded program but Labor and the Greens have maintained their opposition to the proposed 1.5 per cent cut.

The Government has maintained its commitment to cut the value of the R&D Tax Incentive, despite its stated and policy support for innovation, most recently highlighted in the release of its National Science and Innovation Agenda.

AusBiotech has cautioned the Government against changes that would reduce or dilute the benefit for the biotechnology sector.

The Incentive, which is considered a key and internationally competitive mechanism for Australia to attract investment in R&D, is also the subject of a review. The review was initially announced to be conducted by Treasury but will now be undertaken by the recently announced newly created national innovation agency.