The federal government is seeking feedback on a new process it says is designed to provide certainty on the eligibility of investment in clinical trials for the R&D Tax Incentive.
In a joint statement, Treasurer Josh Frydenberg and health minister Greg Hunt said the determination is the first of its kind to be made under the reforms to the R&D Tax Incentive announced in the 2020-21 Budget.
Mr Frydenberg said, “Providing certainty gives businesses the confidence to invest in cutting edge research and development which helps to boost productivity and provide highly skilled jobs right across Australia. To complement these changes, the Morrison Government will also introduce a patent box which will tax revenue from medical and biotech innovations at a concessional rate of 17 per cent, helping to ensure new products are commercialised in Australia."
Minister Hunt said, “Under our Clinical Trials Activity initiative, the Government will invest over $614 million over 10 years to increase clinical trial activity in Australia, and this determination will provide further incentive to conduct these valuable trials onshore.
“Clinical trials gives Australian patients the chance to access cutting edge treatments, that can help save and improve lives, and this is another initiative to increase clinical trial activity in Australia.”
Stakeholders and interested parties can provide feedback on the draft determination on the Consultation Hub at https://consult.industry.gov.au/draft-rd-tax-incentive-determination until 17 February 2022.