The Australian Government is incentivising businesses to invest in medical and biotechnology innovations by providing a concessional tax rate of only 17% from 1 July 2022.
The innovations need to be developed in Australia and patented. The reduced corporate tax rate applies to income derived from the patented innovations.
Get in touch if you think your business might be eligible and we'll fast track the patenting process.
Budget 2021-22 | Announcement of patent boxes
As part of the Federal Budget 2021-22, the Government has announced the introduction of a patent box. This aims to boost Australian investment in medical and biotechnology innovations by providing incentives for companies that develop them in Australia. Patent boxes are currently used in over 20 countries, including the UK and France. The Government will consult with industry on the design of the patent box shortly after the 2021-22 Budget.
From 1 July 2022, the patent box will provide a concessional 17% effective corporate tax rate on income derived from patents by the medical and biotechnology sectors. Normally, corporate income is taxed at 30% or 25% for small and medium companies.