Australia’s biotech sector has called for “tweaks” to the government’s policy on employee share schemes after warning that international competitiveness is at risk.

AusBiotech, the industry body with more than 3000 members, has called for a tax regime to support the innovation ecosystem, both at the start-up phase and throughout the lifetime of a company to retain international competitiveness.

“Our competitors and major trading markets have acted and many have more attractive arrangements for innovative companies seeking to add value to intellectual property,” the industry body said in its submission to the government’s tax white paper.

The submission argues for the introduction of fiscal incentives for investors, in pre-revenue and start-up companies, to encourage what it calls “patient” venture capital and for further tweaks to employee share schemes (ESS) to meet the policy intent of proposed changes.

AusBiotech argues that the definition of a start-up company under the ESS does not fit well for the biotech sector and that the eligibility is narrow.

A start-up company is defined as an Australian unlisted company with an aggregated turnover not exceeding $50 million and which has been incorporated for less than 10 years. This definition in the ESS legislation is unhelpful for a number of biotechnology companies, AusBiotech says.

For more details, go to: http://www.theaustralian.com.au/business/companies/biotechs-plead-for-tax-break-for-start-ups/story-fn91v9q3-1227387291446