Australian government to introduce r&d tax breaks
Changes to research and development tax concessions announced recently by Australian Prime Minister John Howard and Industry Minister Ian Macfarlane and due to come into force on 1 July 2007 will boost investment in Australian innovation by an estimated A$1bn (Euro 610m).
Changes to research and development tax concessions announced recently by Australian Prime Minister John Howard and Industry Minister Ian Macfarlane and due to come into force on 1 July 2007 will boost investment in Australian innovation by an estimated A$1bn (Euro 610m).
The change to extend the beneficial ownership test for the 175% r&d tax concession will allow claims for r&d projects undertaken in Australia, regardless of where global biotech and pharma firms hold their intellectual property.
Senior Investment Commissioner for North America Fred Welz said the tax changes are set to boost the booming Australian biotech sector, which attracted 380 partnerships in 2006, of which almost a quarter (94) were with US organisations.1 'This change to r&d tax concessions gives multinationals and US firms a further incentive to expand their operations in Australia,' he added.
Spending in Australian r&d is at record levels, with firms that are majority foreign-owned accounting for 42% of private r&d spending. 'Over the next four or five years, A$1bn in r&d investment in Australia is expected as a result of this change, with more than 300 companies taking advantage of this concession annually,' said Welz.