In a boost for Australian-based medical and biotechnology innovators, the Australian Government has announced the introduction of a ‘Patent Box’ scheme in its Budget 2021-2022.
Whilst the Government will consult with industry before finalising the details of the Patent Box, features are expected to address the following:
(a) With effect from 1 July 2022, a concessional corporate tax rate of 17% will apply to income derived from medical and biotechnology patents granted in Australia;
(b) The proposed concessional tax rate is compared to the current corporate tax rate of 30% for large businesses and 25% for small to medium enterprises; and
(c) The concessional tax rate will apply to profits generated from Australian owned and developed medical and biotechnology patents.
The Patent Box is expected to cost the Government over AU$206 million during the forward estimates period.
We note that Patent Box schemes have been introduced in countries such as the UK and France. Given Australia’s world-class medical and biotechnology facilities, we encourage local and international medical and biotechnology innovators to look for opportunities to collaborate and take advantage of the Australian Patent Box scheme.
Disclaimer: For general information purposes only. Not intended as legal advice. Please contact us should you require assistance regarding patent protection in Australia.