|Budget Paper No. 2 Page24|Part 1: Receipt Measures Patent Box–tax concession for Australian medical and biotechnology innovations: updated policy specifications The Government has expanded the 2021-22Budget measure Patent Box–tax concession for Australian medical and biotechnology innovations. The Government will now allow patents granted or issued after 11 May2021 to be eligible for the regime. This will incentivise further research and development (R&D) to be undertaken in Australia on medical and biotechnology patents, much of which occurs after the patent application. The Government will also now allow standard patents granted by IP Australia, utility patents issued by the United States Patent and Trademark Office (USPTO), and European patents granted under the European Patent Convention (EPC) to be eligible. This will remove regulatory barriers to accessing the patent box regime for Australian developed innovations patented in the major overseas jurisdictions with equivalent patent regimes. However, taxpayers will still only benefit from the concessional tax treatment under the patent box to the extent that the R&D occurred in Australia. The expanded measure is expected to decrease receipts by $120.0million over 2023-24 and 2024-25. This measure has been provisioned for by the Government. Further information can be found in the media release of 10 February 2022 issued by the Treasurer and the explanatory memorandum to the Treasury Laws Amendment (Tax Concession for Australian Medical Innovations) Bill 2022
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