AusBiotech calls for support on R&D Tax research

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AusBiotech is calling on companies to support research it has commissioned on the benefits and spill-over effects of the R&D Tax Incentive program.

The association says the program has been one of the most significant policies in support of the local life sciences sector. It provides critical support for companies in the form of non-diluting capital.  

However, the Coalition has consistently reviewed and sought to reform the program, effectively reducing the benefit and ultimately undermining the sector's ability to invest in R&D.

The Coalition has proposed reform including a $4 million cap on annual cash claims, a reduction in the claimable benefit, and the introduction of an intensity measure.

However, AusBiotech has led the opposition to the changes, arguing they are driven by budget considerations that will only undermine the government's overarching strategic objective to grow the domestic life sciences sector.

A parliamentary inquiry led by Liberal Senator Jane Hume recommended the government reconsider its proposed reforms "until further examination and analysis of the impact" are undertaken.

In response, AusBiotech has commissioned economic advisory Evaluate to develop a comprehensive data set, including a survey, to demonstrate the extent of the risk the proposed changes represent to the sector.

The association said Evaluate's Catherine McGovern is available to speak to companies on the context of the research. They can also complete the survey online.

"Each of the proposed changes is highly problematic for the Australian life sciences industry, and together they will risk the industry’s future growth and the development of new life-saving and life-enhancing treatments for patients," said AusBiotech.