Following a cacophony of dire warnings and lobbying over the
past decade from the Australian biotechnology and medical sectors,
and the sudden sharp focus of middle Australia on the critical
importance of onshore manufacturing facilities such as those
capable of mRNA vaccine production, the Federal Government has
announced the introduction of a $206.4m patent box for Australian
medical and biotechnology industries as part of the 2021-2022
Federal Budget handed down on 11 May 2021.
Named quite literally after a tick box historically present on
income tax forms, a patent box provides tax incentives designed to
encourage companies to commercialise and manufacture patented
technology locally. From 1 July 2022, Australia's proposed
patent box is slated to tax income derived from eligible patents at
a concessional corporate tax rate of 17%, rather than the standard
corporate tax rate of 30%, or 25% for small and medium enterprises
(SMEs).
