AusBiotech and the Australian Innovation and Manufacturing (AIM) Incentive Group have made a joint submission to the Joint Select Committee on Trade and Investment Growth’s inquiry into Australia’s Future in Research and Innovation.
The group of industry leaders have come together to formulate a policy proposal to protect the future of innovation and manufacturing in Australia and help us compete with lower-cost and competitive economies, to keep our research and intellectual property (IP) on-shore as it develops.
The proposed Australian Innovation and Manufacturing (AIM) Incentive is a revenue-based tax relief mechanism that would reward Australian innovators and manufacturers who produce and sell products developed from qualifying IP that has an Australian nexus, by providing a reduced rate of tax on the resulting profits. It is a system based on the UK’s ‘Patent Box’, but tailored for Australia.
The joint submission says: “We agree whole-heartedly with your view that ‘research and innovation is central to Australia’s international competitiveness’. We also echo the view that innovation will assist in overcoming Australia’s geographic, economic, and labour challenges, if we can bridge the gap to commercialisation and support those manufacturing successfully in Australia.”
“We believe that the government should adopt a ‘whole of life’ approach to innovation from initial R&D to manufacturing to ensure that Australia retains a greater proportion of the benefits that arise from innovation. This approach is central to helping ensure that Australian manufacturers remain competitive on an international scale by bridging the gap between R&D and commercialisation. “
The AIM Incentive would address the gap that leaves our IP vulnerable, retain home-grown IP, and support Australian innovators and manufacturers. Such a policy would make the commercialisation of IP and manufacturing in Australia more genuinely viable for businesses.