Proposed cap on R&D tax incentive will hamper clinical trials, warns AusBiotech

The proposed $2 million cap on the R&D Tax Incentive will seriously damage clinical trials activity in Australia, should the Federal government proceed with the measure, says the trade group AusBiotech.

Despite years of building momentum for Australia as an internationally competitive destination for early access to new treatments and medical devices and its associated economic benefits, capping the Incentive for clinical trials and related R&D will impact the industry.

The Federal government has placed innovation firmly on the agenda, launching the National Innovation and Science Agenda (NISA) in late 2015. It has developed and implemented innovation-focussed policy to back innovation in biomedical research, such as the Medical Research Future Fund (MRFF), which included the A$250 million ($184 million) Biomedical Translation Fund (BTF) to develop and commercialize promising outcomes from Australia’s research. The Federal Government has funded the MTPConnect Industry Growth Centre to advance the medical technologies, biotechnologies and pharmaceuticals sector. The potential reduction in tax support runs counter to the Federal Government’s recognised commitment and will hit clinical trials especially hard, a critical part of the R&D process that enables research to reach Australian patients in need.