Tax changes threaten to cut biotech R&D budgets by 60 per cent
Federal tax changes proposed for 2028 would cut about 60 per cent of research budgets for biotech firms in clinical trials.
Australia's biotech industry is urging the government to rethink proposed tax changes. The proposed changes could devastate research spending.
The government plans to end tax offsets for supporting R&D activities from July 2028. The government will also cap tax incentives once a company turns 15 years old.
For clinical-stage biotech firms, this would strip about 60 per cent of annual R&D budgets. The sector argues 15 years is far too short.
Bringing new medicines to market typically takes 17 to 20 years. Australia's biotech sector has more than doubled since 2017 to about 3,000 organisations.
They employ about 350,000 people. Clinical trials involve about 90,000 Australians each year.
Industry body AusBiotech warns the changes risk driving clinical trials, intellectual property and specialist jobs to overseas competitors like the US.
- 60 per cent
- R&D budget cut
- $1.6 billion
- Clinical trials ecosystem
- 15 years
- Tax incentive age cap
- 17 to 20 years
- Typical drug development time
Why it mattersTax policy designed to save the budget could cost Australia its competitive advantage in biotech research and push high-skilled jobs and billions in trial spending to rival countries.
AustraliaAustralians could lose access to cutting-edge clinical trials, and the country's growing biotech sector could see trials and expertise relocate overseas, undermining Australia's technology and health research ambitions.
✓ Claims checked against the source. checked 2 h ago
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