R&D tax credit to boost Aussie medical research
Medicines Australia welcomes the Government’s announcement today that it has the support of the Australian Greens to pass the R&D tax credit Bill in the Senate.
The new tax credit will reduce the cost of eligible R&D by 10 per cent and make Australia more internationally competitive as a destination for medical research investment, Medicines Australia’s acting chief executive Andrew Bruce said.
“R&D sustains Australia’s $18 billion medicines industry and provides thousands of jobs,” Mr Bruce said.
“This legislation will provide companies with an additional incentive to boost their R&D investment in Australia.
“Competition for R&D investment dollars from Asia and Europe is fierce, and we have been falling behind. With the right policy settings we can reverse this decline.
“We have the right people in Australia to run these medicine development programs and we have good infrastructure. We just need to make it attractive for companies to invest in Australia.
“This legislation is a big step in the right direction to ensure Australia remains competitive in the face of strong overseas competition.
“It will help keep more of our top research scientists engaged in Australian R&D and attract greater investment to our universities and other research institutions.
“I congratulate the Government, along with the Australian Greens for supporting this important legislation.
“The Minister for Innovation Senator Kim Carr has long been a strong supporter of Australian research in general and the medicines industry in particular.
“His advocacy of the new tax credit is a great example of that support.”
The Australian medicines industry attracted more than $1 billion in R&D investment in 2010. In any given year around18,000 Australians take part in clinical trials.
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