Many stakeholders from across Australia will be making the trek to Canberra for tonight's 2018-19 Budget.
The government has already announced a range of measures that will be confirmed by treasurer Scott Morrison tonight. The biotechnology sector will be watching closely for the detail of changes to the R&D Tax Incentive program.
In April, Mr Morrison publicly flagged the Budget will include an overhaul of the program, which he said will seek to restore the “integrity of the program” after accusations of “mining of tax incentives” and “arbitrary use”.
The overhaul is expected to include changes to the refundable components of the program, including a $4 million annual cap and a lifetime cap of $40 million.
AusBiotech has expressed concern over the proposed changes. According to the association, 17 percent of ASX-listed medical technology and pharmaceutical companies that claim the refundable component will be affected immediately, with potential flow-on limitations to their R&D programs.