"Tuesday’s budget papers unveiled plans for a ‘patent box’, a policy to make income earned from Australian-developed and registered patents taxed at a concessional rate of 17 per cent from July next year, almost half the 30 per cent corporate tax rate.
The patent box policy will only deliver monetary benefits to companies that successfully patent and bring products to market. Many companies in the sector spend decades hoping to get to this point.
Chief executive of lobby group AusBiotech, Lorraine Chiriou, said the measure would help the viability of local life sciences businesses by offering rewards for bringing products to market.“This tax incentive will address the gap that leaves our IP vulnerable, retain home-grown IP, andsupport Australian innovators and manufacturers.
It will make the commercialisation of IP andmanufacturing in Australia more genuinely viable for businesses,” she said.“It is an especially significant boost to the policy environment as the country navigates its way out of the pandemic”: CSL’s chief scientific officer, Dr Andrew Nash.“It is an especially significant boost to the policy environment as the country navigates its way out of the pandemic”.
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