Industry can ‘breathe a sigh of relief’ with the news that the Research and Development (R&D) Tax Incentive was not targeted for cuts in tonight’s Federal Budget - leaving clinical trials and biomedical research commercialisation safe from harm.
AusBiotech has described as a ‘welcome relief’ the Government’s decision not to use the Federal Budget to cut the R&D Tax Incentive.
AusBiotech said the industry was concerned that the Government was set to announce it would use the Budget process to implement recommendations of an April 2016 review of the tax incentive scheme, which included a $2 million cap on R&D tax rebates for companies with a turnover of less than $20 million.
AusBiotech CEO Glenn Cross said: “Given the Government has chosen not to use the Budget to implement the review recommendations, we now call on it to categorically rule out a $2 million cap so that the industry can move forward with certainty.”
“If implemented, the review recommendations – particularly the $2 million cap on R&D tax rebates – would have a devastating impact on the growth we are experiencing in biomedical research commercialisation and local clinical trials.
“It would severely damage Australia’s burgeoning medical technologies and pharmaceutical sector, particularly the smaller Australian companies.
“Since its introduction in 2011, the R&D Tax Incentive has helped attract more R&D investment to Australia, resulting in a stronger biotech sector and creating more highly-skilled jobs."
AusBiotech will issue a full update to members on the Federal Budget 2017-18 tomorrow.