Australia's life sciences competitive advantage at risk from Omnibus Savings Bill, says AusBiotech

Trade group AusBiotech chief executive Glenn Cross says the proposed cut to the Research & Development (R&D) Tax Incentive included in the Omnibus Savings Bill, which recently entered Parliament, risks Australia’s competitive advantage in the life sciences.

“Reducing the benefit of the R&D Tax Incentive will have a direct impact on an area of national competitive advantage, which has responded recently with growth, in large part due the effect of the R&D Tax Incentive,” said Mr Cross.

The proposal to reduce benefits to R&D-engaged companies was originally linked to a promised corporate tax reduction of the same magnitude, thereby effectively neutralizing the reduction. However, the corporate tax decrease was not implemented. The Opposition has long defended the need to retain the existing R&D tax rebates, thereby optimising encouragement for the small enterprises, making up the bulk of the Australian life science sector. This position changed in the last election campaign.