AusBiotech slams government moves on R&D Tax Incentive deals

The Australian government’s shock deal with the Palmer United Party and Independent Senator Xenophon to pass legislation in the Senate on Tuesday night to limit the Research and Development (R&D) Tax Incentive deals a further blow to Australia’s innovation ecosystem and will impact large and small biotech companies, the country’s trade body AusBiotech has warned.

The Lower House's subsequent passing of an A$100 million ($82.8 million) expenditure cap today, while aimed at large companies, will see the impacts felt throughout the industry, with more R&D expected to move offshore and the ecosystem that supports small developing companies set to contract, it said.

AusBiotech chief executive Anna Lavelle said: “The R&D Tax Incentive has been the shining beacon of hope and support to the biotech industry and we have consistently praised its success and urged the government not to limit or remove it, and to provide consistency and certainty to the sector to allow its development.”