Government extends biotech research tax break from 10 to 15 years
The Albanese government extended the R&D tax incentive runway for biotech companies from 10 to 15 years to claim refundable offsets.
The Albanese government shifted ground on R&D tax incentive changes. The Albanese government agreed to let biotech companies claim refundable offsets for 15 years instead of 10.
Biotech firms said the original 10-year limit did not match how their industry actually works. Research and development spending in biotech only ramps up significantly after a decade, they said.
The sector's peak body warned that even the new 15-year window clashes with how biotechs operate. It also clashes with the government's own health and research strategies.
Treasurer Jim Chalmers released the draft legislation. The change is meant to support Australian companies in an industry that takes years to turn research into products.
- 10 years
- Original incentive period
- 15 years
- Extended incentive period
- Treasurer Jim Chalmers
- Decision maker
Why it mattersThe extension makes it more realistic for biotech firms to continue claiming tax benefits as their research costs actually increase.
AustraliaAustralian biotech companies will have longer to recoup research spending through tax breaks, helping them compete globally and fund more innovation.
✓ Claims checked against the source and corrected before publish. checked 12 d ago
