Proposed changes to research and development tax incentive will discourage investment and undermine innovation

Medicines Australia

6 December 2019 - Medicines Australia is disappointed that proposed changes to the Research and Development Tax Incentive were tabled without notice or consultation in the Parliament yesterday – despite the recommendations of a Senate Committee inquiry this year to defer the Bill until further consideration was given to the effects of the reforms. 

This recommendation acknowledged that further tinkering with the R&D tax incentive creates business uncertainty especially when incentives are seen to be weakened and not strengthened.

Medicines Australia CEO Elizabeth de Somer said: “It is troubling that the Bill persists with the introduction of an intensity threshold for the research intensive pharmaceutical sector, which would diminish Australia’s attractiveness as a destination for clinical research at a time when we are seeking to expand Australia’s export capacity in the knowledge economy that includes clinical research expertise and infrastructure.”

Read Medicines Australia press release

Michael Wonder

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Michael Wonder