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Patent Box only for new patent's applied for after budget night...


Patent box The Government is encouraging investment in, and the retention of, Australian medical and biotech technologies by introducing a patent box. Over twenty countries currently have patent boxes, including the UK and France.

From 1 July 2022 the patent box will tax income derived from Australian medical and biotech patents at a 17 per cent effective concessional corporate tax rate. Normally corporate income is taxed at 30 per cent or 25 per cent for small and medium companies.

Only granted patents, which were applied for after the Budget announcement, will be eligible.

The patent box encourages businesses to undertake their R&D in Australia and keep patents here.

The Government will follow the OECD’s guidelines on patent boxes to ensure the patent box meets internationally accepted standards. The Government will consult closely with industry on the design of the patent box and to determine whether a patent box is also an effective way of supporting the clean energy sector.

https://budget.gov.au/2021-22/content/factsheets/download/factsheet_tax.pdf