This is a measure from tonight's Federal Budget:|Budget Paper...

This is a measure from tonight's Federal Budget:

|Budget Paper No. 2
Page22|Part 1: Receipt Measures
Patent Box–expanding the patent box tax concession toagriculturalsector
innovations

The Government will expand the patent box, announced in the 2021-22Budget and
currently before Parliament, to support practical, technology-focused innovations in the
Australian agricultural sector.
The Government will provide concessional tax treatment for corporate taxpayers who
commercialise their eligible patents linkedt o agricultural and veterinary(agvet)
chemical products listed on
the Australian Pesticides and Veterinary Medicines
Authority (APVMA),PubCRIS (Public Chemicals Registration Information System)
register, or eligible Plant Breeder’s Rights (PBRs).
Eligible corporate income will be subject to an effective income tax rate of 17 per cent for
PBRs and patents granted or issued after 29March2022 and for income years starting
on or after 1July2023. Eligible income will be taxed at the concessional tax rate to the
extent that the research and development of the innovation took place in Australia.
Australia currently taxes profits generated by PBRs and patents on agvet products at the
headline corporate rate (30 per cent for large businesses and 25 per cent for small
enterprises). The patent box will offer a competitive tax rate for profits generated from
eligible Australian owned and developed patents, supporting the commercialisation of
innovation in Australia.
The Government will consult with industry before settling the detailed design of the
patent box expansion to agriculture.
This measure is estimated to decrease receipts by $10.0million, and increase payments
by $13.4million over the forward estimates period