A “Patent Box” to Boost Medical and Biotech Innovation in Australia
2 June 2021 in News
In the recently announced 2021 Federal Budget, Australia introduces a “patent box” incentive scheme to boost innovation in the Australian medical and biotech sectors.
This scheme requires that the research and development of the medical or biotech innovation be done in Australia and a patent be applied for and granted in Australia after 11 May 2021 (i.e. after the date that the government announced the scheme), then the income derived directly from the commercialisation of the patented technology will be taxed at a reduced rate of 17%, rather than the typical rates of 25% and 30% for SMEs and corporate entities, respectively.
Whilst a summary of the “Patent Box” scheme can be found in the “Budget 2021-22 - Factsheet”, implementation details of the scheme are yet to be worked out. The government has promised to consult closely with the industry on the detailed design of the “patent box”.
We, at Lord and Company, will continue to monitor the unwrapping of the “patent box” scheme and keep you informed on this matter.